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tv   The Exchange  CNBC  August 26, 2020 1:00pm-2:00pm EDT

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financial. >> tiffany >> ferrari i love that they are in the electric vehicle space with virtually no competition they say their electric coupe can go from zero to 60 in 2.5 seconds. i bought more today and it's up 28.5% in the last three months >> stephanie, quick, please. >> nxp ilts t it's the one technology name i would be a buyer of here >> joe >> netflix wow. >> good stuff. that does it for the "halftime report." "the exchange" begins right now. we'll see you tomorrow thank you, brian hi, everybody. wow, indeed. we're going to get to all of those names in just a minute but here's what's ahead this hour profoundly consequential that's what founders say we should expect from jerome powell in his speech tomorrow morning is inflation on the way?
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we'll dig into that with bond shields on the rise. tech america has four stocks breaking out ahead palanteer ceo has some fighting words for tesla we begin with jaw-dropping moves, especially in technology, dom chu. >> i'm still trying to get used to, kelly, this idea of speaking of the nasdaq composite in five-digit terms the 11,000 handle. that's where we're at. you can see here, the outperformer up almost 1.5% on an otherwise flattish day for the dow, anyway. record highs gold star for the nasdaq and gold star for the s&p 500. record highs for those indid ce. this particular etf, ticker
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clou, this stock is now up 95% in that span you contrast that to a roughly 69% move in the s&p, very respectable, but cloud computing really the momentum trade right now. we'll see if it can stick. it's gone a long way in a very short time then the stock of the day. within everything else going on in retail, dick's sporting goods continuing that trend up 14% of announcing outsized digital e-commerce sales nearly tripling last quarter their e-commerce sales a year ago in that period there. this particular company, since the pandemic lows, it's up about 300% just in that time so talk about a covid pandemic stock. we think about zoom, we think about those names. dick's sporting goods is one of them, and kelly, by the way, that's a much bigger move from the lows than both apple and amazon i'll send things back over to
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you. >> dom, i'll give you that that's impressive, but salesforce is up 26% how big is the company now >> that one-day move now makes it worth about a quart either o trillion dollars, nearly $250 billion. with that particular move with salesforce, $250 billion valuation, oracle the software giant, $175 billion valuation. >> adobe up 10%. we'll have more on that later, but some impressive moves this afternoon. dom, thanks. ahead of a key speech in the morning by fed chair jerome powell the speech is already being called consequential and game changing by some on wall street. that's because he could make a move to push inflation higher, marking a major policy change for the fed. joining me now to suggest how investors should prepare for this, kathy jones is key
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investment owner at charles schwab peter, do you think this is a bad idea or a terrible one, or might they win you over in they can get this right >> well, both, bad and terrible. first of all, the feds sort of caudified this whole symmetry thing. they've been saying they put in the word symmetry. it's already there, so i think powell, if he talks about it, will just wrap it in a way this would be the trigger for them to raise interest rates just think about -- i always like to replace the word inflation with cost of living. we have the fed rooting for a higher cost of living. we have double digit unemployment right now in this country. the last thing we need is higher inflation. imagine if it does actually happen i find it hard to believe that longer term interest rates, because the short end will be penned by the fed, that long-term interest rates will
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just remain sitting where they are. the world's bond markets will not just sit by idly and the successful banks will mo move inflation higher. >> kathy, we've come a little less than 12 basis points the last couple of weeks listen, what peter is laying out does not sound great, but neither does deflation if they can't get kind of higher inflation, we're stuck in this deflationary situation, you could have negative bond yields. i don't think anybody wants that you face a cost of living shock that way as well depending how you make your living, especially if you're on a fixed income or trying to draw income from investment security. which to you is the lesser of two evils? >> well, i think deflation is worse than inflation simply because the fed doesn't have -- no central bank has great tools to fight deflation we have great tools to it fight inflation so they have a higher
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comfort level with inflation nudging up my problem with this whole notion of average inflation targeting or raising the inflation target, it's all well and good to say that, but the fed hasn't been successful in hitting 2% over the last 12 years for more than, you know, a couple months at a time. so what i would be curious about is what would they actually be doing to make that happen, other than allowing the zero interest rate policy to continue for a while, hoping the economy rebounds and unemployment comes down enough to generate inflation, but that's a multi-year process from here >> yeah. john, let me bring you in on that and that's where it really hits home for investors. we're already starting to get glimpses and leaks and hints of what we're going to hear in the morning, but if the fed basically does say, we're not raising interest rates for five years no matter what happens with the economy, we saw them going through this period of false starts in recovery last time around. this time it sounds like they'll
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say, we're not raising interest rates, to peter's point, we don't care what the cpi number does, we don't care about the unemployment level, we are not going to raise rates, then john, what do investors do with that do they start piling in on the stock market and is that why we're starting to see some pretty outsized gains in record movers and highs here? >> it is, it's all connected, we would say. what we would say is coming in the middle between peter and kathy and say, yeah, the fed would like some higher inflation, we understand that. they're not getting that the bond market doesn't believe they're going to get that in the future we do worry about a search for yield that's going on globally we understand that's going on. we're trying to do it prudently just as other investment shops are trying to do it prudently. we don't think it's taken stocks up too far actually, using dividend discounting models, stocks can go higher from here because of these low rates. will they get, though, inflation
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and bond yields to go up at the same time? bond yields, we would say, are anchored by europe right now so what we worry about is inflation goes up, bond yields don't go up or vice versa, they got to go up together. that's what we're worried about for investors. >> so, peter, what would your advice be to investors look, we think we all know what it looks like if you think there's real inflation coming. bonds sell off to some extent, stocks sell off, we can kind of get into that gold, but what happens if they change this target people go, okay, i get it, you'll let it go a little bit hotter, but even kathy doesn't believe we'll see sustained inflation at this period of time what do you think we'll do, go into stocks? >> we're seeing it with lumber prices toll brothers in response to lumber prices says they're raising prices aggressively.
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we're seeing the 10-year tips is basis points in the highest level since 2019 we have a dollar that's weaker the inflation is already beginning. now, it's not an event, it's going to be a process but it's already there. you get a vaccine and a rush of demand, considering all the supply chains that have turned upside down, the supply chain won't be allowed to respond that quickly. i would be beefing up commodity names, agriculture, industrial metals i would even look at the bank stocks that would benefit from a steep yield curve if i'm correct that inflation will be even higher than what the fed is shooting for >> that very clearly lays it out, and for people that think that's not going to happen, they do the exact opposite and that's what makes the market. everything else is muddling through. guys, thank you all. really appreciate it it's going to be an interesting day and time if the fed makes this big change. kathy jones, john augustine and peter boockvar
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joining us on "the exchange" tomorrow, dallas fed president robert kaplan. we look forward to hearing his remarks in the wake of hearing fed jerome powell in the morning. it was a five-year note auction with everything going on today. rick santelli, how did it go >> this was like textbook superlative auction. i gave it an a-plus. 50 billion five-year notes priced at a yield of .298, exactly one basis point higher than the .288, which was the all-time low in july for the last auction all the metrics are just stellar, stellar 2.71 to cover, that's the second best in three and a half years 66.2 on indirect that's basically a two-year best 15.9% is super solid on directs. this is just great from top to
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bottom it really sets the standard. but what it may really tell us is that the selloff we've experienced off and on since the 13th of august, the 30-year auction, well, many investors don't believe it will really have legs. back to you. >> we've had this whole reflection about the inflation trade and the fed. with that coming up tomorrow morning, you tell me we had a stellar, superb five-year auction where no single investor would care because it wouldn't make sense to own those treasuries where they're apparently not going to raise rates and hope for higher inflation. >> one thing we want to say, this is the mid-part of the curve. it's more closely in line on what the feds are doing on short rates. if the inflation curve really kicks up, 10s and especially 30s are going to experience it the most so really this maturity is a good maturity to buy if you think even inflation is coming, the feds will try to be lower for longer
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>> fair enough very well put. rick, thank you, sir rick santelli with the latest on that five-year auction for us. coming up, the list of job cuts and furloughs in the airline industry is growing. we'll look at why october is so crucial and if there is a glimmer of more government assistance on the way. speaking of airlines, consumers may not be flying, but investors are betting that airports will be filled again, and it's not the airline stocks they're betting on we'll explain. getting technical. bank of america combed through the s&p and found four names whose charts point to a breakout, they say they join us, ahead. i have an idea for a trade. oh yeah, you going to place it?
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welcome back american airlines threatening 19,000 job cuts if it doesn't get additional federal help. now white house chief of staff mark meadows saying they could take an action to avoid more layoffs. phil lebeau is here with the latest phil >> reporte >> put them up and you'll see they're 1.5% and 2% off today. that's because people are saying, what's going to happen october 1st? we know they're preparing for
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job cuts because the aid expires on october 1st let's be clear here. there are enough democrats, republicans as well as the trump administration they all agree there should be a new round of aid, so there is no contention there the question is how do you do it the white house is considering an executive order, but that might mean telling the treasury department make more money for the airlines to borrow that's not what people in the industry want. they want a new cares act number 2. that would give $25 billion and 70% of it would be in a form of a grant that would not have to be repaid. far better economically for the airlines, and here's the reason why. look at american it's q2 debt at the end of the second quarter, $40 billion. do you think american wants to go back and borrow another $3 billion in order to pay employees that it may not need come october 1st same with delta. its debt at the end of the second quarter, $30 billion.
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no one wants to do these layoffs in the airline industry, but this industry has to become smaller and that's because the demand simply is not there look at the passenger levels they're down between 67 and 74%. it's not growing, kelly. yesterday it was down 75%, and it's likely to stay at this level for at least the next couple months. then you go into the first quarter which is the slowest time of year for the airlines. it has to become a smaller airline. the question becomes, if you're going to keep these employees on the payroll, which everybody would love, someone has to pay for that without a stimulus package, that's a good question one thing wall street can do to help create jobs is to dig up funding for infrastructure projects you might think after what phil just said airports wouldn't be a priority right now, and many airports have lost carriers. but funding for the infrastructure projects are
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actually looking up. gary is here from schenk and company. why are investors interested >> first of all, investors are still carrying a tremendous amount of cash it goes back to really hi high coupon payments and they are giving investors the thrust to reinvest, but they're chasing yield. the airport sector more than most has more yield in our municipal market so we have seen a slight uptick in the transportation sector as a whole where we're slightly up than we were year over year in 2019 airports are slightly down since the dfw deal that we did in july we've seen the market open up significantly and we have about $3 billion of airport deals done since then >> the deal you mentioned,
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dallas-ft. worth was the first airline deal since the pandemic began. that was done in july. since then there's also been a bond offering, about a billion dollars for lax. these are the biggest airports in the country, gary what happens to some of the smaller airports, the ones that might service enormous regions but not a lot of population. are they going to be left out here >> you know, i don't know if they're going to be left out, kelly, but i can tell you the process that we have to undertake with airport credits and all credit is a little different post-covid than before we're seeing investors ask a lot of questions about the metrics of these enterprises but delving into a subject of factors. for example, we've been on a number of calls when investors want to know what has been the responsiveness of government to covid? have they opened up the economy too soon our government is prepared to make the tough decisions in making cost-cutting measures or
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staff reduction. so these subjective factors are things that we're preparing our clients to be able to answer and give them confidence that they have the political will to make the tough decisions. whether it be an airport or water/sewer. >> you've done an issuance for the chicago transit authority, for the regional transit authority of new orleans is this because the maturity is strong enough for investors to say, it's five or ten years, by then the economy will be back to normal just yesterday we were talking about jp morgan in new york city is going to allow employees to work permanently from home for some amount of time, and they said one benefit of this is it will lighten the load on public transit. i'm sure the public transit system doesn't necessarily see that as a benefit right now. so my point to you is how long do investors have to get their money back here? >> a couple things we are pricing the chicago transit authority deal tomorrow,
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so we do not want to steal the thunder and say it's done yet, but we've had a bevy of investor calls with terrific demand there. keep in mind, these are 30-year bets for the most part when investors are looking to park money for 30 years, these essential services will be back at some point. and these are monopolistic assets travel in airports and ridership on major transit systems, investors know na, especially for these large metropolitan areas. >> nasrthat is a great point. a 30-year horizon makes me feel more comfortable gary hall, thank you for your time he's with seibert williams and shank. as america works on getting a coronavirus vaccine, china
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says it already has one. in the investment world, the ceo has some strong words for silicon valley and the stock that's outperforming tesla this yr.ea stay with us
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welcome back to "the exchange." let's check on markets right now where the dow is only up 18 points it had the big day yesterday, remember, but different picture today. it's technology that is absolutely leading the way the dow at 21 but the s&p is up 28 and the nasdaq is up 1.5%, 177 points we are clearly back in having technology in the tech heavy sectors in the leadership. communication services nearly 3%, but remember that one includes a lot of the tech
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players. on the other side of the story, we're back to having energy in the bottom spot, utilities, real estate all selling off as well, which is interesting as rates have crept up a little higher, but they're off the highs of that bond auction. we have roku up 12% after being initiated with a buy over at citi they talk about economic growth and strong value per account roku also one of the tickers on shares today older adults responding to their covid vaccine just as well as young ones there are no side effects. shares of nordstrom, though, are lower after missing on the top and bottom line. their net sales fell 53% because of store closures. nordstrom down 5% today. we will close with shares of netflix. they are soaring today up nearly 12% and not a ton of news, frankly, but there are a lot of tech names that are
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levitating today, most primarily the cloud names after salesforce earnings netflix has continued to climb higher that's also been a theme today let's get to sue herera for our cnbc update. sue? >> here's what's happening this hour the university of alabama reports 531 confirmed cases of covid-19 on campus since classes resumed on august 19th that is the city of tuscaloosa closes bars for the next two weeks. a new lawsuit in the crash that killed kobe bryant and eight others the company that operated the helicopter has filed a cross-complaint against two air traffic controllers. the suit alleges the crash was a result of, quote, a series of erroneous acts and/or omissions, end quote. take a look at this. a dramatic scene off the coast of sar didinia as a burning yact sinks below the coast of the
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caribbean. they abandoned that one for a smaller boat that is amazing. down she goes. no word yet on what caused that fire >> thank you very much, sue herera while a race for a vaccine continues here at home, china has already started deploying one to the public. eunice is live in beijing with the latest eunice >> reporter: staff at state-owned firms are getting rejected under an urgent use protocol sinevac, which is one of the vaccine makers, has hope for a vaccine soon, so much so that they've built a factory solely dedicated to the coronavirus vaccine. we got a look inside if china gets its way, this facility in beijing will be among the first to produce vaccines to ward off the coronavirus. china built this factory in a
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matter of months with a goal of shipping 300 million doses a year the company believes it's on track to start mass production as early as the end of this year >> it's brand new, yeah. >> reporter: the vaccine, called coronavac, is built on a traditional method to get the body's immune system to kill off the real virus >> the technology is mature and has proved to be useful, to be effective among different factions >> reporter: and they are globally in trials sinopharm has priced its vaccines at $142 cansino is not on the list but has a promise with them. sinovac believes it couldn't have ramped up so quickly without government fast track
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approvals, subsidies and other support. these labs are empty now, but they'll soon be filled with technicians testing the coronavirus vaccine. and prepare for mass production at a moment's notice and, kelly, sinovac is listed on the nasdaq, but its shares have been suspended for well over a year because of a boardroom battle so if investors are interested in the company, they're still going to have to wait for a while. >> everyone is interested in whether this is effective and just how china was able to do it eunice, thanks for peeling back the curtain a little bit eunice yoon in beijing for us. coming up, stake holder capitalism versus shareholder capitalism neo's unstoppable rally and apple still believes in the big apple. that's all ahead on "rapid fire." "the exchange" is back in two. ♪ i keep working my way back to you, babe ♪
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welcome back let's catch you up on a couple stories that should be on your radar today. it's time for "rapid fire. here to break it down are leslie picker, brian and julia boorstin we are learning more about palantir set to go public. we had a sense of them before, but in this letter to investors released along with the filing, carp criticized the, quote, unquote, elite and said they don't know anything about society or justice he said, our company was founded in silicon valley but we seem to share fewer and fewer of the tech sector's values and
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commitments. julia, this is an awkward thing for the tech industry which probably doesn't want to be treated as a monolith of values that the company doesn't want to share, especially as they're under criticism for investors these days >> absolutely, but there is a point carp is making, that he does not want to be grouped under tech companies under attack by regulators he says that they turned down opportunities to sell, collect or mine data he's saying they're not facebook, they're not google, really throwing darts at both of those companies and also making the point that they're choosing not to work with china that's a choice they made, that's a risk factor in their s-1, and at the same time they say they are committed to working with u.s. government so really trying to set themselves apart remember, it's only been a couple weeks, kelly, since the ce ceos of all those tech giants testified on capitol hill. >> the zoom technology,leslie, it was a dud
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the whole thing was a dud. but, anyway, do you think he's going to succeed, alex karp, in setting himself apart? they get a little over half the revenue from customers, but we all think of them as being very close with the u.s. government where most of the tech companies otherwise that work with the government have to apologize for it >> you bring up a good point a large part of the silicon valley, they don't see the government as an enemy per se, but the threat of regulation is real for them, whereas with palantir, the government is one of their biggest clients it's something that i don't think they're at the same kind of risk to additional government regulation as maybe the rest of silicon valley is, but they certainly have other risk factors that people are looking at for one, the fact that their customer concentration is significant. that's a significant risk factor and then certain governance controls with regard to this
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company is something investors are also paying attention to but they still have that growth, they still have that predictability in their revenue flow like traditional software companies do >> brian, people are looking through the share structure leslie referenced. they have class a, class b and class f with variable notes per share, but yeah, it's a complicated one. >> it is, and just be careful when they go public. you may love the company but watch out for that structure three classes of shares. people get criticized for two classes of shares and they've got three classes of shares, which as i understand it, leslie probably knows more than i do, but peter teal is just going to get richer and richer and a few other founders, that they'll be able to maintain control even if they sell stock because it allows them to sell at a certain threshold. they can sell to a point, and i would describe the class f
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shares are funky f for funky. take notice. >> we've even seen four classes of shares before, but to my knowledge, we haven't wale seen this variable voting which allows them to sell shares and maintain significant voting rights as long as they held a certain threshold of economic rights in the company. so with snap we saw no fovote shares, we've seen four classes of shares going public in other companies, but this does not risk diminishing their voting power. >> as we said, they're pretty skr secretive. for me the stock of the day is salesforce the newest number in the dow comes in on monday too bad it wasn't already in there, i think the dow would be up another 300 points. they put in a stunning quarter last night, but the stock action to me is extraordinary salesforce is up 26% today
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this is a company now worth over $250 billion this is not a small company. the ceo mark benioff was on ""mad mone"ma "mad money" with jim cramer last night. they said it was the business they put forth last year take a listen. >> this is a victory for stakeholder capitalism, because i think you know we did a great job for our shareholders this quarter but we also did a great job for our stakeholders as well this is a moment we need to think about how to serve all our customers but also our community because they are so much in pain >> julia, stakeholder, shareholder, potato, potato, whatever ucyou want to call it, their revenue was upper quarter. we're getting news that salesforce has notified their staff of job cuts. top line performance not unaffected by covid, but to me the story is the stock price
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reaction, which is just enormous >> absolutely, but i wouldn't overlook what mark benioff said about its stakeholders and this idea they're not just serving shareholders, they're also committed to helping their employees, their customers, and also the communities in which they work. benioff has been supporting this idea and trying to spread this idea that companies can do well by doing good, and i think we're starting to hear this a lot, especially from start-ups, whether they're b corps or just have some sort of social, environmental purpose rather than just generating money, generating returns for their investors. >> brian, what do you make of it >> i think it's a little bit odd timing that we're talking about stakeholder capitalism and using all these fancy buzz words when we get headlines from dow jones that there might be layoffs coming from the company, so it might be a smaller salesforce.com, i guess. i need more details on those layoffs. a company has to reinforce their
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work force all the time. he's also sort of good with the marketing side of his own with words like stakeholder capitalism by the way, he owns 2500 shares, so based on the stock price, my calculations tell me he's worth a lot which may be over $6 billion now. so that's stake holder ka capitalism for you that's a lot of steaks you can buy. it's delicious we have movement on these tech stocks. netflix is up for no reason. it's a good pivot to talk about neo. it's a chinese electric vehicle maker that recently got not one, but two, upgrades. they said they are much more productive, they're stock price
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$16.30 a share they upgraded to sell and raised their price target about $6.30 a share. if you thought tesla was on a tear with its 161% gain, now it's nio leslie, pretty extraordinary stuff, and now we know that anything ev-related, whether it's a stock or you name it, it's outperforming this year >> now a stock outperforming tesla, that's amazing. if you have a stock that's up x over the last few months, going neutral, you have to wonder how much better it has to be before you get an outperform reading. i think a lot of the concern surrounding nio had to do with their balance sheet and liquidity, concerns surrounding their liquidity, so they show they were able to go to the capital markets, they were able to raise money, and now some of those headline risks surrounding their balance sheet have, i guess, been attenuated, at least
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from the perspective of these analysts >> brian, there is some kind of virtue, right, in being the guy who says, yeah, i had a sell rating, yeah, the stock is up, but i don't think it makes sense. we're not seeing a lot of that on wall street yet, not that that would be the first place we see it, but you have to wonder if the analyst note should just say investors love it -- if they think it's because they shore upped the balance sheet, fine, but somehow the rationale is just, look, the stock is flying. >> that's it we said on "fast money" with tesla, you can't make sense of it you just say it's a cool company run by a genius who has the thing. maybe the analyst on nio should just say you're buying promise that's what you're doing, you're buying promise and hope that these cars or these trucks are going to work out. by the way, and nio, i just talked about wbenioff with his language they use all the buzz words. battery with a service simplistic servicing a place of abundant joy.
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that's how they describe the cockpit of the car it's like the tesla y and the mazda x had a kid and it would look like the tesla 6. i just want nio to get bought by oracle so i can say nio went to the oracle that's a matrix joke >> my brother has been explaining a lot of matrix references for me, even though i'm the one who saw the movie first, but apparently i didn't remember enough of the lingo to be literate. finally we have to talk about apple. the future of all these citis has been big lately. the tech giant is reportedly in negotiations to expand office space at 11 penn plaza at least earlier this year. they're expanding by 60,000 square feet. facebook and amazon have also been bargain hunting for real
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estate manhattan dropped below $700 a square foot, their lowest level since 2011 according to cbre julia, i want to ask you about this, because a lot of the companies we're talking about, i wonder -- are they being opportunistic? i mean, look, it seems obvious that companies like this are going to be doing business in new york city for a long, long time but gi bai go back to the jp mon story yesterday. how long are the employees going into the office? maybe they might live a couple states over because they can do that now it just still seems like there are big changes afoot. >> kelly, i think they're absolutely being opportunistic these are companies that still expect to continue to grow their employee base. even if their employees only come into the office a couple days a week, or facebook said they would have employees work remotely and all gather together certain times of year or several times a year there is a huge opportunity, though, to have office space, lock in that office space at a
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time when the rents have declined dramatically. three or four years from now, there is a lot of hope that new york will be back maybe not to exactly what it was but something else very exciting, very appealing, especially for young people who are the kind of people that companies like apple and facebook are going to want to hire. leslie >> yeah, it's a big bet, a big potential bet, we should say, on new york city commercial real estate is i think has a lot of the commercial real estate people saying, you know, this is the place to be, and it will still be the place to be regardless of what the future looks like people are hoping for some sort of hybrid, even, if you can work from home a bit, come into the office for a bit, but it's clear that at least apple believes that kind of comraderie on the east coast will be happening >> we have to go, brian, but manhattan east was not sanguine. >> i think if i were going to buy an apartment, i would go
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offer 500,000. leslie picker lives in manhattan. i miss all of you. i would like to give tyler matheson a real hug at some point, and i know that i will again. i miss all of you. >> if he allows it, then yes we missed you guys all, too. >> when it's safe. we appreciate you joining us for "rapid fire" today that's a wrap, leslie picker, brian sullivan and julia boorstin the names are next remember, you can always watch or listen to us live on the go on the cnbc app. we're back in a couple [ thunder rumbles ] [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know there's a 30-minute limit, right? tell that to the rain. [ beeping ]
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welcome back to then"the exchange" with the markets seemingly higher every day four blue chip names are poised to break out right now joining me is senior technical
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strategist at banking securities steven, let's start with deere >> deere is an example of a big basebreakout that spans about two and a half years the stock cleared some resistance, and if you look at the resistance, it should rally at 230, 245, 246 and a base somewhere in 260 we believe in that base on deere as long as the stock stays above the support range in a breakout of 174 or 172. >> i like what that implies about the u.s. economy, a $50 move to that ultimate point you're talking about from here let's move on to disney which has been struggling since the pandemic, but what do the charts tell you about that one? >> this is interesting, too,
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because in june we put out some charts on disney saying it looked like it was going to stabilize and go higher. after that it went a little bit lower but didn't evaluate its technical setup. after earnings the stock gapped up and for the last couple weeks actually formed a technical pattern called a bowl flag we broke out of that bowl flag, so the bowl flag is a continuation pattern what we think happens on disney, as long as it stays above 128, 146, we think it goes to 147, 148 based on that technical pattern of the bowl flag >> other stocks are morgan stanley and union pacific. i wonder if you would indulge me in the time i have with you on whether you think the market overall has plenty of room to run. that's a huge question on everyone's mind with all these stocks seemingly breaking out today. >> right i think longer term the market is in good shape we had a session reset this year, and i think we are still in a larger secular bull market
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trend with plenty of upside. the risk we have now is seasonality. september and october tend to be weaker we've got the election which tends to show even weaker sea n seasonality september and october. breadth is narrowed here potential stocks on averages we have to stick with things that look good and that's why we're with these stocks instead of some of the growth names which continue to lead here, which you guys mention odd yoedr previous segment >> we talk about them on every segme segment. he likes deere, morgan stanley and eun pacific here, stephen su suttmeier with bofa securities she's here next with theig b
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