tv Worldwide Exchange CNBC April 29, 2019 5:00am-6:00am EDT
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it's 5:00 a.m. at cnbc global headquarters and here is your five at 5 shattering records disney's "avengers" just did the unthinkable at the box office. the full details straight ahead. the earnings at center we'll break down the key names you're going to want to watch. another round of high level trade talks are about to kick off in beijing we'll take you there live. new developments this morning in the bidding war brewing in the permian basin and walmart threw some serious shade at amazon over one day delivery. it's mon darks april 29th, and
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"worldwide exchange" begins now. good morning, welcome to "worldwide exchange. i'm courtney ragan futures are slightly higher this morning as we get ready to kick off the busiest morning in earnings season. you can see the dow jones are higher industrial futures are higher by 25 points. the s&p 500 is slightly higher as well. first, let's talk about the first big top story of this morning. disney's avengers smashing records at the weekend box office let's get straight over to rahel solomon with all the details. >> good morning. it was the biggest box office opening ever disney's avengers end game it took in $1.2 billion
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globally that is the first time a movie topped the billion dollar mark 90% of ticket sales went to "avengers. "endgame" was a smash overseas it took in a record of $859 million internationally. a lot of that came from china. the record-breaking numbers are huge for disfully. disney shares are in early trading a little bit heighter. courtney, again, a huge hit this weekend for disney we'll have to see how the next few weeks play out. >> that was highly anticipated it smashed through the records experts were expecting. as we mentioned briefly at the stop of the show, futures are slightly higher. the dow jones industrials are
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higher take a look in at the treasury yield here as we gear up for the fed's two-day meeting beginning tomorrow as you can see here, the ten-year treasury note sitting here for the yield at 2.5 and change take a look at oil prices. this morning with wti, down by 1% brent crude down slightly worse than that by 1.5%. sitting around the $71 mark. let's check and see what happened overnight in asia we should learn japan is closed this week, actually through may 6th to celebrate a holiday there. the shanghai composite down 3/4 of a percent they did see most of the markets
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lower. the hang seng can be higher by 1% the worries by what's going on in china as far as the growth, still in overhang on the markets. check in on what's going on at europe, early trade we're seeing mostly green arrows. germany is ever so slightly lower. spain down half a percent on sunday earnings will be the big focus on wall street we're about to kick off the busiest week of earnings season. 143 s&p companies will be reporting results. some of the big names will include alphabet, apple, mcdonald's, gm and pfizer. of the names that have already reported results, 77% have beat those epfs, earnings percent only 17% have reported misses but let's handicap what's going on in the week to come
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let's bring in mark gymbrione. >> yes >> he's equity portfolio manager. as you look forward to what's going on this week, pfizer one of the big names to note health care has been an under performer down 2.5%. anything we need to watch and how that may end up shaping the market narrative >> sure. i think the earnings are very strong what we've seen in health care is most earnings have been substantially stronger as you've seen, there's been a lot of talk from bernie sanders about medicare for all it's putting pressure on the overall space. we believe if you look at the space at the hmo stock specifically, we believe there ease a lot of value there. both united and anthem reported
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last week, they broke earnings 20%. the stocks are down significantly with pes at 11 times for anthem, 14 for united. we think most of the political overhang, at least the worst rhetoric is behind us. we think from this point forward if we can focus more around the fundamentals, there is significant up side. >> technology has been a leader up 26% for the year. when you're looking at the sector, we have alphabet on deck when you look at the tech sector, is there any reason to think it could be curbed >> the thought is very positive. we'll see how the earnings look. i would anticipate the earnings growth are very good
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they're strong, healthy companies. it can make a big difference it appears regulation is starting to turn its head in the technology sector. that could have long-term implications we believe over time fundamentals went out but regulation is a zblern speaking of fundamentals, it wasn't that long ago we were worried about the next recession coming around the corner really, a lot of the economic data points have been quite strong no earnings recession in site that we've seen so far so if you're looking at your broader portfolio, risk on, risk off, what's your broader look at the market as we keep clipping these new highs, day after day, even if it's a slow melt up, it's happening, right? >> no doubt. we think that will continue on a moderate basis defensive looks good if you're going to segment it more
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it's hard to find value as the market is up a lot in some areas it's more defensive like the tech sector. >> thank you, mark great to have you. i'll check back with you in the future as we move forward. we have a big update on the bidding war brewing in the permian basin. anadarko's board thinks the occidental offer could be better than the offer from chevron. if anadarko decides to scrap the chevron deal, it will be forced to pay a $1 billion breakup fee. they have not commented on these reports. if you take a look at shares at least right now, occidental is up just slightly here.
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remember, we are very early. it's only about 5:00 the story is developing and the shares will likely begins it stay ahead as "worldwide exchange" continues. the clock is ticking on a u.s. trade deal with china we'll take you there live ahead. then we'll take you live to madrid following this weekend's national elections why the outcome could impact every international investor. and later federal reserve hopeful steven moore is calling this out
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welcome back to "worldwide exchange." i'm courtney ragan let's get you up to speed on what's happeningin the markets for the futures, just slightly higher if markets were to open here in the united states, the dow jones would be 26 points higher. the s&p 500 would add two and the nasdaq up by 9 points at this moment. let's take a look and see what's going on in europe moments ago we were mixed. that's still the case with a little bit more down side bias as we've seen several moments ago. it looks as if italy is the only positive market. just slightly so overnight in asia, we did get a mixed bag. we should note that japan
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continues to be closed for a holiday. sticking with asia, treasury secretary steven mnuchin says that china trade talks are in the, quote, final laps he made those comments before leaving for beijing for another round of high level talks. let's get to eunice yoon live in beijing with more. hello, eunice. >> reporter: hey, courtney i like the track analogy i often feel like we're all running around in circles. the u.s. and china negotiate are are supposed to happen and the presh ri secretary are going to be leading the umpt s. side. next year the chinese vice pr premiere is going to head to the u.s. there's going to be a signing summit between president trump and president xi it could take place as early as late may or early june it appears the face-to-face
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negotiations are an attempt to try to work on some of the toughest issues because it was only two weeks ago that treasury secretary steven mnuchin were making so much progress in the final stages of discusses and were in regular room they didn't need to meet in person again it looks as though they do the biggest sticking points are exactly how the trade deal is going to be enforced and also how and when the tariffs would be removed again, treasury secretary steven mnuchin over the weekend had said that he believed that these talks are now in the final lap but, courtney, as you know, we don't know how long those laps are and oftentimes the last issues are the last issues for reason and take time to resolve them. >> that's a good point i feel like it wasn't so long ago that we were on the final laps we're still on the final laps.
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once they figure out exactly what the agreement are on both sides, then you have to be very careful with the language, too, that it's enforced in the same way by both sides. that could take some very careful parsing as well. >> reporter: yeah, absolutely. that's one of the reasons why we keep that i go there's going to be an end and then it turns out that the language just isn't there for both sides to make the next step. that's one of the reasons why we're all waiting. >> we'll keep waiting. eunice, thank you for keeping tabs on that for us this morning. making headlines overseas, the results are in after spain took to the polls in a snap general election cnbc's willem marks is live in madrid hello, willem. >> reporter: hey, courtney this was a bit of a gamble back in february when he called the snap election.
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he could not pass the budget through the lower chamber and so decided to see if the positive numbers would work by he's still quite short of a governing majority he needs to partner up with other parties to reach that. it would be a similar setup to what he had on friday with an anti-austerity left wing party and the challenge is the catalan accepttis became any easier. the other august turn native is the leader has been incredibly critical of pedro an chez.
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there are some concerns in terms of the political maneuvering it's unlikely we'll have any great clarity on what exactly the government will look like until at least the end of may or maybe even early june. >> can we at all try to figure out what it means for spain's economic future? at least the initial reaction of the market down only slightly in spain. >> reporter: over the last ten months while pedro sanchez led the government, a minority government, he pushed through higher minimum wages what he's planning to do is increase taxes on the top earners here in spain, including on some sectors including the banking sector that is something clearly that markets are not that fontd of in terms of the reaction here we've seen this morning, but in terms of what it means long term, we've got a bit of a stalling economy and they've been in a holding pattern.
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they're hoping the socialists underpaid droe sanchez with a governing majority, they'll be able to make some progress. >> willem, thank you for keeping us up to date on the latest with the spanish elections. we have some sad news to get through. we learned that bart chilton has died from pancreatic cancer. he worked at the cftc from 2007 to 2014. he was first nominated to the position by president george w. bush and then was renominated by president barack obama current cftc chairman chris giancarlo said chilton's death is sad to all of us. bart chilton was 58. we'll be right back. k there ares to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care,
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capitol hill this early monday morning looking beautiful as congress prepares to get back to work for what's expected to be a very busy week. what week isn't. tracie potts is here with us. >> reporter: this could be interesting, courtney. the attorney general of the united states could be a no show at his testimony before house democrats on thursday. this is a showdown over whether or not those democrats in charge of the committee are changing the rules of that hearing. >> committed to --
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>> reporter: attorney general william barr is set to testify before the senate judiciary committee on wednesday that's still on. his appearance before the house judiciary committee may not happen democrats want to go behind closed doors to ask questions about what was blacked out of the mueller report on russian election interference. they want to lengthen questioning to 30 minutes per lawmaker and allow lawyers to grill mr. barr a justice spokesperson says only lawmakers should they call the demands abusive. why won't he just release the unredacted report? >> reporter: the judiciary chair told cnn if barr doesn't show up, he'll issue a subpoena for the attorney general and use whatever means necessary to enforce it democrats also want to hear from
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special counsel robert mueller republicans are fed up. >> i'm not going to litigate it. i don't know how clear i can be. it's over for me. >> reporter: mueller elected to congre congress the attorney general decided to drop it but now may not return to capitol hill to explain why >> reporter: now remember, democrats did not want to read the new version of the mueller report at all. it had less information left out. they've been pushing to get the whole thing. >> what is the status of the request. is that going to happen? >> reporter: all the grand jury secret information, they want everything the subpoena is out. the deadline for response to that is supposed to be wednesday, but the trump administration has said they will fight all subpoenas coming from the democratic leaders in congress. >> reporter: this saga will continue on throughout the week and likely after that.
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tracie potts in washington this morning. let's get a check on this morning's other headlines. nbc's frances rivera is in new york. >> hey, courtney, good morning to you a day after a shooting at a southern california synagogue, a funeral shot her john t. earnest surrendered to police. police in baltimore are asking for the public's help for a gunman who opened fire in two cookouts the cookouts were happening on opposite sides of a west baltimore street the police say a man shot into a crowd. they're investigating whether another man fired back the identities and conditions of the victims are unknown. police believe the shooter may have been targeting someone in a
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crowd. in just seconds these two 500 foot cooling towers were destroyed by implosion they will be redeveloped those are your headlines for this monday morning. those videos are so interesting to watch. >> never get old. straight ahead on "worldwide exchange," a company in crisis boeing gearing up for its annual meeting as the company's grounded 737 max showing no signs of slowing checking in. air b auntd b vague no explaining
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ready, set, report we're about to kick off the busiest week of the earnings season we'll break down the key names we need to watch straight ahead. a billion dollar blockbuster. disney's "avengers" shattering records at the box office. we'll run you through the jaw dropping numbers. walmart throwing some serious shade at amazon as it ups the ante and delivery wars we'll explain. it's monday, april 29th, and you're watching "worldwide exchange" on cnbc. welcome back to "worldwide
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exchange." i am courtney ragan. brian sullivan is on assignment. let's get you up to speed including a huge record breaker at the weekend box office. we're back with your executive recap. good morning >> good morning, courtney. here's what's leading cnbc.com right now. disney's "avenger endgame. it took in 1.2 billion dollars the record success means big money for disney the shares are up almost 2% in premarket trading. >> deal nuns, anadarka will entertain occidental's takeover bid. now if they decide to scrap the chevron deal, it will be forced to pay $1 billion breakup fee.
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shares are flat in premarket trading. tesla reaching a deal with the sec over his wetweeting he can't tweet without permission the settlement needs to be approved by a judge. tesla shares are also up in premarket. courtney, i'll send it back to you. never ends. >> thank you for your help. let's get you caught up on what's taking a look you can see we're mostly flat. lost a little bit of the upper momentum dow jones industrials futures up 3.5% take a look at treasuries yield on the ten year, just around
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2.5% as the fed gets ready to begin its two-day meeting. we'll have discussion on what that may mean for rates coming up take a look at what's going on for oil prices which have been under pressure last week. wti is down 1 1/3% brent down almost 1 1/2% to wti sitting around the mid $62 barrel mark. markets? japan closed this week hong kong, shanghai. you can see hang high composite down the k o ospi, up 1% as the china talks continue with u.s. officials over trade let's also see what's happening in early trade in europe we had the spanish elections.
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europe has turned more negative than we expected half an hour ago, you see in germany markets lower by 1/3 of a percent. well, earnings will be the big focus on wall street this week we're about to kick off the busiest week of earnings season, 143 s&p companies will be reporting results. some of those big names include, just some, alphabet, apple, mcdonald's, gm, pfizer earnings season has been off to a great start. of the names already reporting results, 77% have beat earnings estimates. 6% have reported misses an we were worried it. steven morse, here's what he told abc over the weekend. >> well, first of all, let's go
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back to december i think this is one of my strongest cases for why i should be on the federal reserve. i was one of the first economists among thousands when the fed raised interest rates back in december, i got very angry about it and i said this was economic malpractice it was a terrible decision by the fed. the stock market fell by 2500 points in the subsequent weeks of that and then, of course, the fed had to reverse course. >> well, juning us and he's a cnbc contributor. >> good morning. >> i'm sure you heard the dplents mr. moore. what do you think? economic malpractice, that's a pretty strong term. >> that's not an economic term the fed's mistake was that it was going to hike and that it was going to be on auto pilot.
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had the fed raised rates and said they were effectively on personala hold and in the process of deciding they were going to tlaet itself. i don't think december was a mistake, it's that they caused correction. >> we have this meeting coming up we just got the gdp report up 3.2% much stronger than economists had expected you think that's not the full story? >> no. >> the underlying economic data is much weaker >> that's right. >> what do you mean in. >> if you look at effectively private final demand it was barely up more than 1% which is what i thought gdp was tracking in light of production gdp is a measure of output production in the first quarter
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looking at fed data was negative therefore, when you look at the numbers and see inventory was accumulated for a substantial portion of the gain and you had a big shot in government. >> you will see it not repe repeating. this is the first print and we have many revisions. two, much more likely, we see a much weaker number in q2 that's going to be a much better gauge of how the economy is performing >> for investors if they're trying to take a look at their portfolio ahead of the fed meeting and the ultimate commentary that comes out of it, what are you expecting is there anything that could give you reason to think that the fed is going to change course, do something different than they did in december? as you suggested, learn from some of their mistakes and shift their commentary
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>> the risk would be that powell says more than he's supposed to. if he stays so the script, the markets will be fine that's my hope he learned be from his cumulative miscommunication and he'll be much more nuanced, much more non-committal if that happens, they will be consistent looking forward later in the year given the drop i see in inflation, my guess is the fed will be dropping rates that is effecttivelily priced in the market looking where ten year yields are trade are. >> that's a good point on inflation. they have a dual mandate and inflation has been trending downward we're going to get another reading today. do you think it's appropriate for the fed to change course what are your expectations there from what we might see today going forward? >> yes, courtney
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if you look at the tightening cycle over the past too jeers. the average time between the last tightening and the first easing is about seven months in the last cycle it was longer. the market is saying it's 12 months the last hike was december that seems reasonable especially if inflation is under shooting the fed's mandate in the entire business cycle continues to drift lower which is what i anticipate. >> earlier in the program we spoke with eunice yoon over in beijing and she gave us an update of what she can expect in trade talks between the u.s. and china. how are you modeling and how much it reflects u.s. economic growth and therefore chinese
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economic growth because there have been worries for so long about the outcome of this. how are we supposed to be positioning in advance of knowing what the real outcome can be >> sure. courtney, i've said two things all along i thought this was a negotiation as a little bit of political theater. there would be the broad contours of a deal reached at some point this year given what i've been hearing and seeing, that could happen within the next few weeks they are largely determined byly quit at this therefore, the pivot in the trend has affected markets and the trade discussion was never something i had to model always about the fed and when they were doing and unless there was going to be a full blown
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trade war, i think investors have focused way too much on those factors. >> fair enough we will hear from them on the two day meeting beginning tomorrow. >> thank you, courtney. in corporate news, boeing ceo will face regulators for the first time since the grounding of boeing's 737 max planes he will hold his first press conference after the company's annual meeting that happens today in chicago. that comes on new reports that boeing didn't tell southwest airlines its biggest 737 max customers that a safety feature designed to warn pilots about a malfunctioning sensors has been deactivated. that feature had been included in older 737 jets. in a statement to cnbc boeing said the feature was turned off after indonesia.
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boeing tells cnbc the warning lights will now be included as a standard feature on the 737 max. we'll have full coverage throughout the day of the boeing annual meeting, something that we are continuing to watch as this story unfolds boeing shares are just about flat in the early going. sticking with boeing deutsch bank says the recent expectations are the floor and it's down .2 of a percent. still on deck, more on the record breaking box office for he wears as opposed to one day
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unbelievable i'm not super into the super hero movies. i missed the boat but i guess we're rare, right? >> i think you and i are part of the 10%. >> i guess so. it's pretty amazing. we talk about people not going to the movies. look at this weekend, it's not true they're all going. it depends on the movie, content, big screen. >> i think we need to figure out how to get on the super hero train. airbnb making a big push into the new york space. they will partner with rxr realty for portions of new york city commercial properties into a new category of bush ban logic. the units are essentially hotel
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rooms, living rooms, kitchens that can be booked through the airbnb platform starting with the iconic plaza we will learn much more about this from airbnb ceo at 11:00 a.m. >> they want to collect the hotel taxes so we'll see how this unfolds and what the chiet looks like. >> courtney, you're a marathoner >> yes >> running amarathon is all about time. >> you're a marathoner too >> even more so for this man who ran yesterday's london marathon dressed as, yeah, you see him there? big ben. >> oh, shoot. >> he seemed great running into trouble at the finish line when his costume got stuck. he did get help across the
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finish line. 26.2 miles is tough enough he did it in a costume. >> i saw some other costumes, too. i saw a gentleman running as jesus. people take it to a whole level. this poor guy added, i don't know what, maybe 25 seconds to his time you have to get across that finish line. >> i hear ya now to the baseball dye month. rough day for a brewers outfielder this is video you'll have to see to believe going back to catch a fly ball but a fan had the same idea. neared of them made the catch. he dumps his beer on him >> i was to say -- >> right in front of the budweiser sign, a brewers -- >> it was perfect. >> that is funny that is funny.
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>> he probably didn't think that was funny. >> thank you walmart is tweeting one day free shipping, without a membership fee now that would be groundbreaking stay tuned joining me now is the ceo of j. rogers and a cnbc contributor. jan, this was a big one. i saw this after amazon put out their announcement in their earnings call on thursday after the bell, right? this came out on saturday. a day later after walmart had no skme comment be to make what do you make >> walmart will get to same day delivery, so is amazon they're making the steps now i would have come out with that tweet because they can say, we'll give it to you maybe same day and no membership fee and they've been hit for at that
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time wi-- hit for at that time with amazon. can anybody else maybe not. those two certainly can. >> i have a three-prong question i spent a lot of my day yesterday thinking about this. can walmart do one day should they do it? and at what cost >> they can do it. and they should do it and the real question is just what you said, what's the cost to them to do this? what's the cost to amazon. they've already said, hundreds of millions of dollars what's the cost to everyone else market share is what it costs everyone else. walmart has to do this can anyone else keep up and pay the price that it takes to do it it's marred to imagine anyone else can. >> amazon told us they were going to spend $800 million in the second quarter alone they didn't detail it out.
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i would imagine that it only ramps up especially if you get into the fourth quarter where volume is much higher. >> no doubt. >> that's a lot of money if you are a walmart investor, do you want them to spend 4, $5 billion to get up to that point? >> if you're the investor, i'm sure you're going, i don't want this to happen if you're walmart you're saying, i don't have a choice. if amazon does this, i have to be competitive amazon caused walmart or walmart's competitive nature caused it to spend a fortune as we know over these last five years to be competitive with amazon when doug came out and talked about it, as you recall, the stock went down a lot, but now it's all come back and it's all paid off and walmart's winning the game versus all of the other retailers. they've got to continue to do that i've been watching walmart, as you know, since 1968 they only came into existence in
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'62. they've done the same thing to the rest of the retail, right? they kept making a new step every time and they won the game they got all the market share. they can't let amazon out walmart walmart. walmart will fight this battle to the bitter end. the question is do you still want to own the stock? my answer is, yes, you do just like you still want all the amazon stock these two win the game. >> we do have an analyst call. barclays over rating the stock target appear to have more on it >> i'm not pushing target. i think target is the third man out in this three horse race targets has done a great job they're a much better retailer than they were three or four years ago. they were the best retailer in the country in '06 but now we've
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reached the point where it is sort of a three-horse race and i just don't see how they continue to win the game. i understand the call. they are doing a much better job in appearance and they have to fight same day delivery with walmart and amazon. >> they have shipped same day if you want to pay $92 for target >> yes. >> jan, we could fautalk about retail all day you have work to do and so do i. thank you for being with us. happy monday. when we come back, why our next guest is sounding the alarm at least for now in the huge run up of technology stocks. plus, we're about to kick off the busiest week of earnings season the key names and atwh needs to be on your radar when you return unpredictable crohn's symptoms following you?
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welcome back a huge week of earnings kick off the day with google. alphabet parent. we'll see apple, mcdonald's, berkshire hathaway what's the biggest story for you and your money joining us is michael purvis thank you for joining us tech led the way up 26% year to date we'll hear from key names from alphabet and apple is this the leadership team you should get behind? >> backing up, technological led the way out of the dips so frequently over the last eight years. over the broader term i am over weight tech. having said that, you have to look at how violent this rally
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has been is it simply sensible to take profits ahead. look at the ratio of valuation of the xlk etf usually it doesn't sustain those. the only time we've been higher was in 2000. there were a lot of reasons why you're having the polarized market where financials and the value group, never quite get there, whereas, tech is getting there. having said that, i just think that there's -- you know, these are sort of warning signs. so comparing the risk/reward for technology shares coming out of the season which has them pretty good, after a rally this steep and after this sort of valuation recapture, it seems this is limited up side here. >> 143 in reporting, they cover
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a lot of the sectors health care has been one aural though last week it was very strong and it led the way. anything we need to be paying attention to. >> the main thing on health care, it's almost like a litmus test you saw that a couple of weeks ago. drug pricing and, you know, more centralized health care plan funds -- becomes a priority. what's interesting for me for health care stocks, is that a canary in a coal mine as it relates to the market. >> so much more that we could hit. we're out of time. thank you for being here with us this morning, michael purvis
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good morning more bad ink for boeing. the company's ceo prepares to face shareholders. another big week for corporate report card. five dow components set to open their books. and a billion dollar blockbuster disney's avengers shattering records at the weekend box office we will run through the jaw dropping numbers it is the 29th, i believe.
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i think i got it right you think it's april may is coming. "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. >> impressed >> good morning, everybody welcome to "squawk box." we are live at the nasdaq market center in times square u.s. equities at this hour, you can see things are just barely below fair value this comes after gains for the mashts last week crossed the board. in fact, the nasdaq actually saw its fifth week in a row that it's in positive territory the s&p and nasdaq set positive and to celebrate the enthne
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