breaking news, global markets hammered after wall street saw its single worse session since midmarch the dow plunging nearly 1,800 points in one day. investors on edge in up ticks of positive coronavirus cases and hospitalizations in many states pushing to reopen their doors for business the white house says the economy will not go into lockdown again. amid the turmoil, one company testing the waters in what could be the largest ipo of the year friday, june 12, 2020.

you are watching "worldwide exchange" here on cnbc good morning welcome to the show. i'm dominic chu with me for the entire hour is analyst lindsay bell, also a cnbc contributor. we'll get to lindsay in a moment breaking news as u.s. stocks look to open sharply higher after a rocky day on wall street the dow falling almost 1,800 points to march in march when it fell almost 13%. you can see with the time lapse those moves. the dow is now down more than 7% at this stage. s&p down nearly 6%, nasdaq down

3% all on track to snap win streaks with the major average this week alone. yesterday, we continued to watch technology microsoft, facebook, apple, amazon, alphabet all closing sharply lower. shedding more than, get this, $269 billion in market value >> this is the nasdaq 100 etf versus the russell 2000 small term etf over the last couple of weeks, w we saw all of that create tiffity in those names and small caps and underperformance there. a trade we'll watch specifically play out today

around the world, we've got red ar owes in asia overnight and mixed pictures in europe matt taylor in singapore and julianna tatelbaum in our london news room. matt, we'll begin with you red arrows but things didn't end up as bad as they could have we've seen a big turn around when markets reopened, we did see markets opening. well and truly off the lows. south korean market down by tech stocks there shanghai composite ending flat homes on capital returns in hong kong, down 1%. cathay pacific with the substantial loss in the first half of the year following this week's bail out. the japanese market was a big

turn in the story. the market closing down only by three quarters of 1% we saw them going out of the yen and going into the yen when we saw money go out of the yen supporting the tokyo market off by about 2%. was down more than 3% at one point. the prime minister saying they did expect more in the reopening there. >> to early trade in europe, julianna tatelbaum is standing by in london there >> good morning. european markets have been open just about two hours but it feels longer than that. we opened in negative territory. the stoxx 600 extending the sharp losses we saw yesterday.

trading higher around 1% or more the cac 40, the french market leading the way higher 1.6% coming off steep losses in the overall index drops more than 4% the worst daily performance since march 23 pausing for breath and trying to determine where the markets go from here. >> we had seen the trade auto, travel and leisure and banks are on the down side down .3% one of the more defensive

baskets are open dom, back to you >> live in london there. amid the selloff yesterday a major bearish call the stock market is a bubble that will likely end in a few tears. >> i honestly think we go back and retest the lows and history shows us that it is very likely we'll undercut the lows and getting to levels i talked about before, which may be as low as 1,600 on the s&p >> joining me now ryan payne and lindsay bell from ally invest. ryan, we'll begin with you here. let's talk about scott's comments here. we think the worst is behind us.

others feel as though we'll retest the lows. what is the outlook in your opinion? >> i'm bullish here. we just had the 50 best trading days ever in the history of the stock market we've seen more stimulus around the world. china's pmi numbers and demand for strul levels is going on all the economy is concerned about is getting better. i'm hard pressed to think we are going back to the lows >> lindsay, i'm curious, there is a reason why the markets reacted the way they did yesterday. no doubt, it has been a sharp turn higher but what was the factor that really caused the

market to sell off as sharply as it did yesterday >> it was a couple of things increasing to play into the factor of that happening more than a week now the fed the day before coming out while still being dovish the outlook remains pretty bleak just a reality check we came very far, very fast up 13% in the last month and the market started to feel a little more frothy when you look at internal indicators. you started to see that the market felt like it was getting a little stretch you felt the market popping at least pre-market what it tells you is that there

is still a decent amount of volatility in the market that will return and is something we'll see until we get to more economic data and second quarter earnings in july >> if that's the case, what will be the biggest factor in the future of the market is it covid-19 hospitalizations, earnings count what will drive the market for the next six months? >> look, i think the market is going to be choppy from here until, like i said, until probably second quarter earnings season the market could react to different headlines as we get them i really think the technicals are once again taking over here. you saw over the past month, the hope for reopening really driving that upside in the

market now we are getting back to technicals driving that. we'll have a limited amount of data points and limited information coming our way the market will look towards technicals and sticking around the two-day moving average on the s&p 500, which is 3013 that's the level we were at through month of april and may ultimately, i do think there is enough support in this market from the fed to support levels where we are at least near today. >> so ryan, let's turn to you for the shopping list. what exactly then? we've had a pull back. stocks are on sale tell us what you would be looking to buy given what we have seen right now? >> you want to look at this as a correction in a bull market. you you are going to hear a lot

of headlines talking about how finely the markets come back to the economy. they don't do that getting this opportunity to buy talking about cyclicals. discretionary, materials and any sector off the bottom. you want to buy the stuff beat down a lot small caps particularly outperform in recovery i'll ask the allocator to try not to put everything into big tech amazon trades to over 100 times per earning. it is crazy to start to spread that money out international there. very attractive. my shopping list has all the beaten down sectors and asset classes that are starting to perform better since we bottomed

on march 23. >> thank you for that. lindsay bell, you are sticking around for the hour. when we come back, much more on the march turmoil as markets try to ee raise some of yesterday's losses just a few of the dow names looking to make a come back in the pre-market today you can see boeing adding 7% now, boeing adding 4.5 one company reportedly looking to dip its toe into the public equity markets what could be the biggest ipo of the year later on, fundstrat's tom lee and what he's telling his clients. this morning, hurts proposing a $1 billion stock sale. lululemon shares shrinking after

its sales fell 17% in the most recent quarter zoom video looking to limit chinese government data requests a very busy hour more ahead after this break. that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. talk to your financial professional or consultant jimmy's gotten used to his whole yup, he's gone noseblind. odors. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric.

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and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. welcome back despite the recent market turmoil. planning to jump into the equity markets with an ipo.

our own leslie picker broke the story. she joins us now could be the largest ipo of the year an interesting time for a mortgage company to be going public >> yes absolutely could be the largest ipo of the year. timing is interesting. nonetheless, i'm told the market valuation still being worked out here working out the billion dollar ipo and surpassing warner media group which launched just shy of $1 billion. quicken may flip it to be public as soon as next month. working with morgan stanley, goldman sachs, krcredit suisse n jp morgan. founded by dan gilbert also

majority owner of cleveland k cavaliers and credited with revitalizing downtown detroit. up from 53 billion in the first quarter. mortgage rates hit a new record low yesterday with the average rate on 30-year mortgage reaching 2.97% low rates have been encouraging homeowners to refinance which could partly explain all four banks declined to comment on the ipo we'll learn more on what exactly their financials look like a fun one to watch >> first it was lemonade and now this these are not small ipos backed by a large company like

soft bank. what does that say about the environment for ipos and what it really factors into these ipos at all that is a key factor having the discussions with their advisor all of those plans were put on hold and we thought maybe a good here. was yesterday enough to stop those plans? i don't think so we might see some pauses one of the things you have a big lens on more freely and with lower

costs with regard to the hot ipos we've seen as of late >> i think with the retail investor what we see is that the ipo is always popular with them. we have an up tick of new investors and retail investors and they are much more active than they have been perhaps because they have more time at home what is interesting about the ipo market now, the companies that have gone public, the 10 largest that have gone public since april are up 83% that is a positive sign, which is why you probably see more ipos coming to the market here additionally what i've noticed is you've seen a lot of special purpose corporations from the likes of goldman sachs and

social capital and others coming public this year that talks about the liquidity in these markets these corporations or firms are trying to take vachbtage of it right now taking advantage of the amount of cash sloshing around in these markets. >> a big deal out there now. the sentiment rising in the market as we head to break, watching shares of tesla and general motors in the pre-market as analysts down grade tesla from a buy. upgrading general motors to a buy rating on the outlook has the stock down more than 5%. general motors nearly 8% down yesterday. we are back after this >> announcer: today's big

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welcome back to the show one stock chart to bring your attention to we look to futures we are near session highs now. the dow jones indicated higher by 623 points. s&p would go up by about 66 and the nasdaq by about 188. remember the dow lost about 1,800 points yesterday, the s&p lost 188 to put that in context. one of the charts we are keeping a close eye on is this one here, not month to date. exxonmobil, norwegian cruise line and simon property group are names to focus on because they've been some of the hardest hit and have been some of the biggest risers as they start to

reopen seeing things higher in june as people have optimism about the economy reopening. we've seen that trend turn markedly lower travel and leisure and retail are stocks to watch amid this kind of market turmoil >> nbc's fill lphillip mena is e with the ratest. >> despite coronavirus pandemic, 1,000 west point graduates were called to the graduation saying it was a mistake to appear beside the president for that now infamous st. john's church walk there. attacking protesters along the way. the president plans to hit the

campaign trail to tulsa, oklahoma regular straighting that you agree not to sue if you get the virus. growing concerns this morning that relaxing restrictions is causing major increases in covid-19 cases 15 states have seen cases rise more than 25% in the last week those are some of the top headlines on this friday back to you. >> have a nice weekend, sir. when we come back, breaking down the hardest sector in yesterday's selloff and asking if it is primed for a rebound. first, this is the only stock in the s&p 500 stocks that ended the day higher yesterday as the index she had some 188 points. we'll reveal the mystery chart when "worldwide exchange"

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posed for a rebound. looking to pick up the pieces after the worse day since midmarch tech getting hit hard as facebook, microsoft, amazon, apple and alphabet combine

is there more pain to come >> taking on retail investors and who got burned particularly hard and what it means going forward. friday june 12, 2020 and you are watching "worldwide exchange" on cnbc. welcome back this morning with me the entire hour has beenally invest chief strategist also a cnbc contributor. we begin with breaking news as u.s. stock futures look to open sharply higher after a rocky day for wall street just yesterday the dow falling 1,800 points to mark its worse session since midmarch you can see with the time lapse it was lower and picked up down side momentum into the closing

bell as bad as it was yesterday, yesterday's drop for the dow was only the fourth worst on a percentage basis as can you see for the entire year. on march 16, we had some 1% declines for the dow s&p 500 is down around 6% as you can see. nasdaq lower by about 3% for the nasdaq, we hit record highs early in the week. we are just about 6% below that mark as things currently stand all of these are on track to snap three-week win streak speaking at the closing bell yesterday. >> the markets always overshoot. we probably overshot on the down side and probably on the upside. if you look at where we are right now, we've come back down around 8% from the highs but we

are still up over 35% from the lows we are in the period where we are trying to find a relative fair value for equity. that doesn't mean they can't go lower or higher. we are trying to digest right now what value should be >> price discovery taking place over the course of the last few days here. amid the selloff, there was one. one s&p 500 stock that ended the day higher that name is, think groceries. kroger you can see up about 1.5% pre-market today been a rare beneficiary of the virus outbreak with many restaurants closed and people working from home and cooking from home more kroger and other stores have seen higher sales of food and other staples products since february going to a choppy scene in

europe so far. julianna tatelbaum is standing by in london with the latest there. >> investors in europe are buying the dip after the sharp selloff we saw yesterday, the stoxx 600 ending 4% lower the worst performance and investors are swooping in and buying stocks in the latest selloff. led to the upside by france with the cac 40 getting to sectors in terms of buying the biggest demand for travel and leisure and companies that benefit most from the reopening. on the down side, we have health care trading in the red. down about 18 basis points about .2%. investors seem to be putting their money back to work

back to you. >> julianna tatelbaum, live in london have a nice weekend. financial u.s. and global banks fell broader highlighting the pandemic's potential to weaken the economy. shedding more than 8% closing in so-called closing territory. marking the worst day since midmarch let's get more insite on the banks. starting with you have banks been a recovery play and was the rally as of late at least warranted? >> i think it was warranted back in march talking about banks and then they retraces

got back up to 1.3 times value the stock is still up double digits over the last 30 days part of the down side of central bank intervention is that you get more volatility. it ran out of fixed income and went back into stocks. as was said yesterday, we are trying to figure out what value is that is still a dominant factor in the market today. >> talking about what exactly that momentum as of late is telling us about the banks they've been underperformers for so long. they have not been participating since the covid-19 lows. what does that say around sentiment around the banks i think there is uncertainty the big question is credit we still don't know exactly what we are going to see in second quarter earnings we know credit costs would be

higher uncertainty still dominates the analysis it is hard to talk about value if you don't know what credit costs will be over the next 12 to 18 months and we don't. i think it was a big mistake to give regulators over the next 30 days we don't even have that. that data will be released in front of second quarter earnings for a lot of analysts, we have questions. we don't have a lot of answers at this point. >> lindsay, one big question is whether or not financials are key to any kind of market rally as they have traditionally been in years past. >> yes, you like to see the financials and the banks lead the way out of any type of recession. a sign there is a light at the

end of the tunnel and future growth coming our way. you want to see financials did have a nice pop going into this week, which was nice to see. there are still a couple of question marks the banks did any stating holding interest rates for two years. interesting about this group because they had been beaten up so much and there was a pull back about another good entry point where we've gotten exposure yet and gotten through the crisis to the latter part of this year into next year because the consumer really has shown signs more recently they'll be able to come out of this a little more stronger on the other side which will benefit the banks on the longer term

lone loss provision is expected to increase in the quarter a stronger than expected recovery would benefit the banks. talking about price discovery. you talked valuations. let's blend those together on the shopping list looking at better valuations speaking with prices we've seen come down as of late. al right, i think we are having some technical difficulties with chris there. thank you for joining us also lindsay bell, thank you you are sticking around. coming up, why it could be the end of a trend for casino stocks after a surge higher a quick check on other names we are watching in the pre-market including dave and busters

surging dispite mitigating on the button line. same store sales surging the company forced to close all of its stores mchonar 20 as the pandemic took hold we are back right after this there are people who can only get food from amazon. when you come into work, that's what drives you. my little one, i would say he's definitely proud of me. every time he sees the blue prime trucks, he says, "daddy, there's your people!" i know every single one of us is here busting as hard as we can go every day to make sure these packages get delivered. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

amid fears of possible

lockdown in states experiencing covid-19 one sector is getting hit hard kate rogers has the story. it is all about dining out >> good morning. restaurants really taking a hit on fears of a second wave of covid hitting the economy. some names fairing better. casual names better darde, bloomen brands and closely associated starbucks down 8% yesterday and projects a $3 billion loss in q 3 due to covid lowering eps guide and estimating it would half projected store openings projecting to on the go openings in some cities in the country. those holding better would hold

steady and grow during the pandemic chipolte, dominos wing stop with robust carry out and delivery platforms and partners to cater to consumer preferences in this new normal new data from the group shows as of may 31, nearly 70% of restaurants in cities or states now open for some form of on premise dining major chain transaction data continues to improve overall down 18% full service chain reaction fall. we'll have to see what the speak means moving forward >> those trends there and with the discuss there.

you mention the consumer picture before with regard to what spenders are showing as the economy is picking up steam. >> it will be interesting to analyze moving forward and consumer spending starts to pick up we know that rate will start to pick up which is extraordinarily high that is some pent up demand. the jobs data was encouraging. we'll see what june brings in july as well we'll see what unemployment continues to trend there are still a lot of people out of work. in july, we have an expiration of unemployment bonus of $600 per week the government is expected to intervene with some sort of stimulus to help it in to support the consumer, which there is going to be demand to

spend. they are siege the trends pick up will be important how these trends change with cases spiking. ultimately, i think companies that had cash going into this crisis that serve customers and make it easy to get their food and go quickly they can continue to do well those with access to the sba and ppp loans will survive the crisis best. they are key of course nearly 60% of casinos nationwide have reopened their doors early indication suggests demand for gaming exceeds the available supply leading large

operators. a rash of outbreaks and fears of contagion will be open covering global gaming and lodging industries will be with us talking about those casinos. a lot of momentum in the medium term with option around reopening. is it justified? >> what we are seeing this week is a give back of some of the gains we've seen over the prior couple of weeks. we are taking a measured view of what will happen in the near term i think the street is trying to gauge what 2021 will look like some will have two-thirds of the available gaming supply and

hotel rooms will happen. we point out in markets like the las vegas strip, there is no entertainment. markets are spaced out and what we are seeing are visitation what we expect are driving about half of visitors in las vegas drive and the other half fly. presumably what we are getting are the drivers. presumably what we do well are the events and conventions and big groups we are nowhere near those reentering the markets we cover including in las vegas in the years i've covered casinos and gaming, there is a difference between, say las vegas sands and mgm versus a penn national gaming what can we look at in terms of who the outperformers will be given what we know and don't

know about the covid-19 situation right now? >> it is a good question very good question, the key question when we look at regional markets, what we know is more than 80% of the revenue they generate comes from the gaming floor. of that, more than 80% is driven by slot machine revenue. much different from what we see in las vegas where less than half the revenue is coming from the gaming floor and so much is coming from restaurants, entertainment, big groups and conventions that come to town. the implication of that is that the regional markets which we point to which we have been positive on since the outbreak began are people who typically drape within an hour and make very regular visits. their spending patterns tend to be very regular. they get more than 75% of the revenue from 25% of the

customers. while only part of the floors are open, they are making sure that 25 pirs of the customers get in the door and are comfortable. >> thank you for that outlook on gaming still ahead, retail investors getting burned tom leon what it means for you and your money on the market that's coming up next.

can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. welcome back futures pointing to a bounce back as wall street tries to recover from the worst day since midmarch can you see the dow indicated higher by 600 points as these

hold into the opening bell data show it is the most bought stocks on free trading application robin hood during the prior 24 hours were in the red yesterday. ford, general electric, american airlines, disney and delta joining us now tom lee and lindsay bell tom, let's talk about how much the retail trader has become the main headline story over the last couple of weeks why is it we are paying so much attention to what they are doing >> the retail trader has always been important when i did internet in the 90s, they were the ones that really discovered internet stock and if you look back, even stocks like netflix. the reason they've been really important since march is that

institutional investors have been really cautious that's why we have record money market cash and older investors because you can see it through retain money mark eight cash and surveys really targeted for baby boomers have been uncertain too. the only active investor ozs on this market and of course there is others. they've done exceptionally well. the fact that they are buying epicenter stocks, i think it is correct. now the real opportunity is in the stuff that was at the epicenter of the crisis. >> does that mean the retail investor has gotten more

sophisticated. when you got in, that means you were going out with smart money. does that mean they got smarter with more trades >> looking at retail names in coming years, tesla. it has been eamon sister if it is not in the russell 1,000 or s&p 500, people ignore it at the finger tips of people now because of social media and look, we can all now access financials on line people can build apis all the dashboards on these retail systems are similar to the sophisticated systems people used to use 10 years ago financial education isn't the same not everything we are seeing is directionally correct. i used to do bankruptcy research i wrote a street called chapter

after chapter 11 99% of stocks going bankrupt cancel the equity once you've completed your reoriginalization. not always there are some places where it is a little worry some one of the tweets you put out over the past week caught my attenti attention what they are selling in terms of their sentiment. >> we saw one of the highest volume weeks in trade since march we saw a lot more selling in the past. it was more buying than it was

selling. it had been amc and alibaba. notable for what tom said. they've been left out of the rebound of the stock market driven by millennials to a lesser extent. another thing i would note is we look at the top 10 traded stocks march 23 to monday those include names like united, tesla, amd. those stocks had advanced to 137% on average going into this week yesterday those stocks combined down an average of 30%. those stocks are up early.

going forward, they could be the right call going long term >> importance of retail investor that does it for "worldwide exchange." "squawk box" picks up the coverage next. that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. talk to your financial professional or consultant bbut what if you couldg do better than that? like adapt. discover. deliver, in new ways, to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back, but bounce forward.

and now, with one of our best offers ever, we're committed to helping you do just that. get a powerful and reliable internet and voice solution for only $29.95 a month for three months. call or go online today. [ scoffs ] are ythe weirdest. you make everyone around you crazy. people are normal then they hang out with you and then they're jack nicholson in "the shining". i'm gonna tell my mom you tried to drown me. it's an above ground pool! you're like eight feet tall!

stocks looking to bounce back after an 1,800 point selloff. investors on edge over an up tick of coronavirus cases and hospitalizations in a dozen states the white house says the economy will not go on lockdown again.

a familiar fame for homeowners days are going to get longer for the next week and a half or so "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we'll start with the markets a day after the plunge of 1,800. only the biggest drop we've seen since march. shows you how volatile these markets have been. we had been talking at the beginning of the week about the dow ended on monday, over that period of time really wracked up some