it is 5:00 in new york call it the wall street whiplash stocks bouncing back tech, what else, back in charge and the stocks back in vogue but the cool kids, our next guest says you better brace. >> shocking wild ride for one of wall street's hottest new stocks and sec has opened an investigation into nicola. >> residents in the south a live

report from the region is next >> apple trying to lift the curtain on new gadgets a new phone not likely will anybody care? this is "worldwide exchange" on tuesday, september 15. ♪ >> a nice segment of music coming up later in the program >> by the way, good morning, good afternoon and good evening wherever you may be watching good to have you back with us. global markets are stepping up this day solidly in the green the major average back yesterday after the s&p 500 posted its worst week since june and the

nasdaq the best week since march. the nasdaq back above 11,000 but still about 1,000 points away from that high of september 2. small but mighty do not forget about the small cap stocks the russell 2000 posting the best day since july 15 small caps have been outperforming. don't forget about the bond market either. the federal resofr and a new inflation framework in place talk of lower rates stronger the continuing note is stuck there for months around the world, a mixed session in asia overnight. europe are just getting warmed up as well they are not getting any clear direction in the world all three are higher in europe but the gains are very small look at the dax at .1%

more developments in the tiktok saga as the sale deadline closes in we have more on that in your top tuesday story. great to see you >> great to see you, brian let's start with the news on tiktok the treasury department says they will review the agreement between oracle and others with the aim of avoiding a ban on the video-sharing app. this comes after oracle beat out microsoft to address the trump administration concern that the app possesses a risk >> looking at shares of nicola after the sec reportedly investigating the company from allegations from one wall street investment firm that it deceived investors. saying, quote, on september 11,

nicola's legal counsel proactively contacted and briefed the report pertaining to the hinn den berg report the research has called nicola an intricate fraud that overstated the capabilities of the early test trucks. they have a strong position and stand to benefit if shares fall. citigroup is resuming job cuts ending an early pledge and citi joins rivals likes wells fargo in the job cuts removing more than 1% of the global work force. down 1% year to date back to you. >> a lot of news around citigroup as well in the last couple of sessions ceo departing. we'll see you and are you ready

for trending i have a surprise for you. >> so ready. >> i will look for it. >> bring it. let's get back now to the broader markets and what may be behind the wild volatility we've seen recently. our next guest, he has a column out over the weekend called the wildly popular trades behind the market's swun and surge. he says stocks are all about options right now. wall street journal, greg. it is a pleasure to have you back on. last week, we introduced viewers to the term gamma squeeze and talked about the mechanisms. when you posted the size and volume of options activity, even i got nervous. what can you tell us about how retail investors are really

gambling >> sure. historically, the average retail investor, one getting into the market played stocks individual shares increase to options, which are potentially much riskier and much more sophisticated investment and sticking on options. increasingly sitting to investors. we've written on soft bank and the others in our case, it is not just soft bank, 120% of all share purchases will share on options. not much option going on in the single stock option world where we have seen before. >> a lot to unpack there, first off, there have been the

creation of weakly expiring single stock options they used to be only monthly now weekly, so i expect that plays into volume. if i say, you want to sell me a car, i'm going to pay you 1.2 times the value. should the theory of options be more than the stocks because there is not enough asset to cover the trades >> yes i don't want to make any direct comparison you saw that in the financial crisis where they the contracts and they were much higher than the underlying what is important, you get all the stock option trading in buying and selling, the banks, the dealers that have to sell this stuff they do respond by buying more of these shares.

let's say you and i buy the options for the dealer they don't want to get caught short. so they buy the underlying shares they add we suggest this is the only reason markets go higher and fell again a big part of it is the add-on affect to hedge themselves >> you don't have to say it, i will i've talked to a lot of traders that say, that is a big reason many of these big sttech stocks continue to go up. not only are the etfs buying these but now the options traders are playing these stocks the dangerous options. i know you say if i buy it from you, there are two people, could you sell it to me. someone active on this other side as we found out this week, that

could go poorly really quickly >> what is interesting, if you are an individual investor, you start to play options. i've got two young sons who have done a little bit of dabbling to their father's dismay, you are going up against some of the big boys the citedel's of the world not to say that individuals can't win out. frankly, they've done pretty well on some of these big tech stocks done as well. >> hold on, you buried the lead. you just finished the book on jim simons, the man who solved the market i urge everybody to read that. you are writing this article and your own children are the

problem. they are contributing to the volatility when you sit around the table and you say don't do it, what do you say? >> they listen to their peers more than their father anyway. if they make money, fine they are not playing with a lot of money but it is a lesson they are already getting a little concerned one reason they got concerned is i informed them there are taxes one needs to pay if one makes money trading stocks, which floored them there is an education process going on in our home >> there are taxes and they shall be paid. great article. maybe i'll repost it this afternoon. watch out for your kids. they don't listen to me either buts that fine now to a developing story we continue to watch in the gulf of

mexico one i hate to talk about again another hurricane baring on the people there hurricane sally now a hurricane 2 storm. packing winds up to 110 miles an hour and closing in on category 3 status they just can't get a break down there. jay gray there with more i love seeing you on the show but i hate for the reasons you've been on, which has been storm after storm. >> reporter: no, brian you are absolutely right it is going to be another rough one here continues in mobil, not that bad. mobil bay is calm at this point. that's all going to change dramatically over the next 24 to 36 hours as sally moves in a warning shot rain and gusting winds as sally stocks the gulf coast. the storm intensifying

threatening the area from louisiana to the florida panhandle. pushing thousands into the strike zone. to prepare, stocking up. >> water and it might flood, lights might go out. >> sally, one of five tropical cyclones in the atlantic right now, which has only been that crowded one time since scientists have tracked storms the slow pace is a concern >> we'll have a ton of rain and we have to deal with storm surge. >> water likely pushing into areas it is not supposed to be and staying for a while. that water may be sally's most

dangerous weapon forecasters predicting a surge in areas of a foot and a half or more >> you know, jay, while the winds may be fast. one thing about this, the slow movement of the storm as a whole. how much is that playing in the problems and what that might expect >> a huge issue and really why this water is going to be so rough. we had laura a few weeks ago got in and got out that wind a lot of the damage here the wind will shift and continue to dump that rain. the national hurricane center with the latest report saying we could see catastrophic and historic flooding over the next several days

>> jay, some of the oil refineries had just been shut down many of them are taking the workers back off you were down there. the damage and flooding from laura is not even gone yet there is still a lot of people that don't have power. we are three weeks into this only one other time we've had five cyclones in those waters. at some point, the region gets storm fatigue and a lot of people really worry about what is going to happen as we go forward. >> these are not the kind of records we want to be breaking jay gray and the folks down there, take care when we come back, the one

company that could unseat amazon as the top dog in e commerce no new phone no one cares maybe not. the latest on apple's new product launch today later, meet the mets, buy the mets the bidding war that puts the oracle tiktok deal in the dust as the mets get a new owner. "worldwide exchange" rolls on after this so you're a small business,

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video games, real estate and retail wars. let us begin with sony a report they are cutting targets for the playstation 5. apparently due to the console's customizable semiconductor len lennar shares are down 2.5% saying the average sales price is flat from a year ago and expected to decline. housing is expected to cool off. walmart's new program launches today. walmart plus, their version of amazon prime costs $98 a year. including unlimited free

delivery on orders over $35. members can pay with their phone and skip the checkout line at the stores watch out amazon still on deck, has the pandemic and lockdowns got you concerned. pepsi, the drink for inso many knee 5:0s. what they are throwing in the soda, next >> announcer: today's big number, $800,000 that's how much tiktok's parent company spent on lobbying in the first half of 2020 as government officials considered banning the app over national security concerns almosthr tee times the lobbying spend for all of 2019. yup! and that's faster? faster, yea! but is it reliable? ah huh and secure! you should consider making a big deal about it! bigger? i said bigger!

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♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow. welcome back as the morning goes on, stock futures go up. opening up 150 points higher watching that higher across the board. it looks like a lot of green on the screen today let's get a check of some of your dow pre-market gainers. sal sa saleforce locking strong we'll go to philip mena with more >> crews are still struggling to get a handle on the wildfires

wreaking havoc on the west coast. at least 35 people have died and that number will likely rise as the difficult search for the missing continues. the fires have destroyed thousands of homes and torched over a million acres more fall outin roch chester new york, over the death of daniel prude addition to requesting a federal investigation into prude's death back in march. the new york mets are shaking up their ownership investor steve cohen has agreed to buy the team for $2.4 million he will be the second richest only behind only los angeles clippers steve balmer.

back to you. i was going to ask you as a trivia question if you could identify any owner than him richer he's going to be richer than 10 baseball owners combined >> or balmer has at least three or four times the amount >> i think balmer is probably richer than all the baseball owners or all the sports owners combined because of the microsoft stock. thank you, philip mena. straight ahead, why one rapid test used in nursing homes getting attention of federal authorities but not in a good way. taking on mcdonalds and the all-day breakfast game the first to launch cinnamon themes breakfast treats. we are back after this ♪

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there were tsunamis fourtin the world. and once they happened, we were in a major hurry to get to those regions to provide aid and support. it was very humbling to be able to help out all those people. it's my dream now to go into clean energy and whatever the next new fuel source is, that's where i want to be. i want to be on the front lines of implementation. tuesday may be the worst day of the week. futures are looking to go higher today and add on to yesterday's gains. if it is just a watch, will you watch. apple set to launch new products but a new phone unlikely >> cinnabon finding ways to ruin

your diets on this tuesday, september 15, this is "worldwide exchange" right here on cnbc ♪ >> okay. this is weird. i had no idea they were going to play that song i do not know what songs they are going to play. i know it is because of the cinnebon story we have a story coming up about vinyl. the first song on the first side from neil young is "cinnamon girl." boom i'm done futures are higher we are seeing a gain of 161

points coming as broad gains yesterday giving everybody a reason to slulg off losses the nasdaq had its worst week since march. indicating more of the big tech and what else, big tech. a focus on the nasdaq. above 11,000 again maybe 9.5 from the all-time highs. don't forget about the stocks. the russell 2000 has been outperforming and posting on the best day the gain of 2.5% on monday so watch the russell and the small cap and a rotation to more value stock. watching the bond market for a reason they aren't doing enough we haven't talked about them a lot. the first one that begins with

the new inflation. you had a mixed session in asia overnight, you had two markets up one of the major markets no big gains but they are in the green. to the latest on the on going outbreak and concerns over one virus test that and other top stories >> reportedly investigating reports of false positive covid-19 results the company is specifically looking at the rapid test machines provided by the federal government to nursing homes. a trade group representing homes has heard from roughly a dozen of the facilities claiming they've seen significant number of false positives regulators are demanding for citi group also reporting that office of the comp troller of the currency

and federal reserve are reportedly to push the bank to fix its risk systems the journal adds that the move accelerates the chief executive's forced retirement. he felt the reserves were best left in the hands of his successor. sfl . hurricane sally is slowly moving towards the coast forecast to bring in intense rains and storm urge to louisiana, mississippi and alabama. >> the gulf coast has seen big storm after big storm. as we track that storm, we are also tracking oil prices you've got conflicting things pushing and pulling on either side

you see that wti crude is up hurricane sally forcing oil production in the gulf off line. they just had the workers back on and now they are taking them back off the gulf represents 16 to 18% of oil production the international agency cutting oil demand forecast taking it down to 91.7 million barrels a day that marks a reduction of 8.4 million year over year and that is a loyal more than the previous prediction they had demand growth has been sluggish as the world has been slower than expected to come out of the pandemic-laden fog coming up, call it calm in a can, if you will the new product from pepsi they want to help you unwind and not jack you up. >> other top stories, fintech

startup valuation has more than doubled. climbing to more than $10.5 million. the swedish online firm raised in a round led by silver lake partners, black rock and others. the ceo will join us exclusively tomorrow morning live. he used to work at burger king now he's worth a couple of billion. >> snowflake raised the price of its ipo. that's a cloud computing company. amazon has hired a former uber manager to lead its e bike team in new york city. looking that they may be looking at bike delivery as a way to speed up package deliveries. we'll be right back after this

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the greatout doors facebook expands and the mall will be closing in 10 minutes, so get out starting now with camping world. the rv retailer raising the outlook for next year and plans to launch a new peer-to-peer rental program facebook is buying rei's new headquarters near seattle for $370 million

rei never even got to move in to the space. the pandemic skutled those plans. looking to cash out with most employees working remotely simon property group says the malls will be closed on thanksgiving day and will be open on what was formally known as black friday. see if that even matters before the pandemic, more consumers were shopping on line last year. thanksgiving day online sales hit $4.2 million in other words, you are ignoring your family and buying stuff on thanksgiving good for you apple with a product launch. a new iphone is not expected it can still be an exciting event let's find out why joining us now, president at creative strategies. he's been following apple for decades. i think we first interviewed in

the late 90s good to see you. what are you expecting from apple today? >> the rumors have been clear that iphone is not going to be shown. it looks like it will be specifically around the apple watch and probably some new ipads and they may talk about something in records to services apple services has been one of the most profitable thing for them causing them to grow even more so in the last two years. every quarter they are bringing $12 to $13 billion in services >> it is incredible. just looking at the current suite of offerings you get the monthly or annual i cloud. maybe apple music and maybe

apple news $9.99. maybe apple arcade you realize i'm sending $50 a month to apple i never even think about. >> that's right. and again, we are not sure exactly how this will come together there has been incredible interest to try to combine those services to some kind of package that is less expensive we are hoping that is exactly what they'll be dealing with there's not been a lot of rumors on that part specifically. the big thing we need to be loobing for is any time apple introduces new products, they tend to have something with more power. perhaps more memory, more features in the apple watch standpoint.

one thing that has been pretty clear, apple has made that a very important part of what they believe is their role to help us stay fit and healthy i suspect anything that comes out over the apple watch besides new design/more power, et cetera would also have a pretty strong focus on health and fitness. >> they don't want to scare people off but also probably like that cash flow. i hear what you are saying to bundle everything into a platter. that could be a big platter. do you expect any -- and one more thing type of surprises >> no. i doubt that again, the rumor mill and some of our sources have been pretty clear that this is really going to be focused more on probably

the watch and more likely something in the ipad arena. again, we are hearing from the rumor mill these are the guys that seem to be really close to an understanding of what might be happening that their service business which continues to grow is something that probably fits this september announcement. >> one thing that is really interesting by the way on this particular style is the fact that they are capable of doing multiple things now virtually instead of, as you and i have done, we've gone to apple's headquarters and thrown everything in in one day now, it is easier to schedule it when you do it virtually

>> it is but i do miss being out there with you guys being jam packed in a sweaty theater and elevator i'm looking forward to getting back to that thank you for joining us >> well, we alluded to this earlier. maybe time to dust off that old record player and time for the top trending stories seema with those >> the ever evolving music industry seem to be taking a step backwards vinyl formal reemerges as the dominant source. vinyl album revenues made up 62%, outselling cds for the first time since the 1980s accounting for only 4% of revenues pepsi is releasing a new

sleep-aid product. containing 200 milligrams of an amino acid it comes in one flavor, blackberry laugh endoctor will be available in december >> cinnabon rolls heading to the frozen food i'll releasing' product line in addition to the signature rolls. the line is currently for sale in walmart with a wider release this fall. sound aprpetizing >> no. it doesn't i just found out some listens

can't hear our music we are playing. talking about cinnabon we are talking about the vinyl, this has cinnamon girl on it i call that sychrenicity i had no idea, i promise, that they were going to play those songs what is your favorite song >> i do not shave a favorite song, maybe you can make a recommendation >> it is every breath you take, which is not a love song it is a creepy stalker song. thank you seema.

on deck, your morning rbi. which country is seeing the best stock performance this year, take a chance on us. that's a hint. coming up later this morning in a cnbc exclusive, house speaker nancy pelosi will join squawk on the street at 10:00 a.m. eastern time here only on cnbc we are playing abba going into break. good morning

maybe the most random but interesting thing you'll hear all day. this is sure to get political. we know covid has been politicized on both sides. we just like to look at the numbers. the single best performing

country this year, sweden. basically up 8 this year more than 2% more than second place south korea. sweden is up 18% bouncing back off its dip. is that a reflection on the look at herd immunity it has been a good market for investors. other nations have delivered the old meatball this year random but interesting how do you say that in swedish the on going break has put the health sek tr with new challenges the newest word from credit suisse as it puts out health benefits for next year >> a.j., thanks for joining us

what are the number one or two trends we should be looking at year out i would say first and foremost predicting the medical costs between next year will be harder in recent years, it has been an scrap lags of inflation forward giving you expectations around trend. what we are seeing is the concern of employers and procedures next year in some cases, they are worried maybe there will be a further postponement of utilization. all in all, employers are concerned about the health status and many have received postponement in the pandemic >> by the way, there are a lot of procedures that have been cosmetic and then you have dire

situations that were terrified to go to the hospital. how much of a back log is there? >> one of the major questions for this year to next. there has been a major rebound also still a perception among employers that there is a large percentage of their population that has been cautious one of the areas we've seen the least rebound has been in emergency room visits, so people just going in to get checked for fairly routine things and sometimes serious things as you've alluded to. that seems to be the area people are cautious heading in. we think one of the statistics we found is about a third of employers believe that health status of their workers has deteriorated relative to what it

was at the beginning of the pandemic even putting the covid-19 issues aside on their own >> listen, i know covid is terrible but let's be clear, there is a huge mental health and physical health toll that will be taken outside of this for years to come that nobody seems to be talking about. one of joe biden's proposals is to offer medicare for employees between 60 to 64 you work for a company, they offer you insurance but you can go do medicare it sounds like nobody wants to do that. >> that was an interesting one we felt like we should go out of the normal question block because we were getting so many questions about this we did ask our 700 employer correspondents 75% said they believe their employees would continue to

accept the commercial coverage in addition to that, 25% that said their employees might opt into it, more than half said they believed those 60 to 64-year-olds would use it as a vehicle to retire early. so that is interesting there must be significant group that feels locked into their job because they have to maintain health care coverage that would take advantage of it to retire >> before we go, we always try to get concrete investment ideas. any one or two companies that are going to see a permanent benefit? >> united health care, the industry leader with almost $300 billion in market cap is having an excellent year. they are giving back whether we are talking about the members themselves when it comes to employers or relief in co-pay. they've created some good will

among themselves and the customer base. they've grown very good between this year and next for the company that size to have seen growth consistently, that should be a core holding for many types of investors. >> good stuff there. we appreciate it hot topic, thank you very much >> good to be with you >> good to see you let's go back to the broader markets. stocks posed to keep yesterday's rally going. the nasdaq continuing its climb back to its worse week since march. investor attention also focused on the fed and fed chairman jay powell kicking off the latest two-day policy meeting today joining us now portfolio manager at federated steve, it is good to have you back on the program. one thing flying under the radar

is small cap stocks. the russell having a huge day yesterday. do you like small caps, are we finally seeing the rotation into the quote value names again? >> i wouldn't call it a rotation i call it a broadening i don't think growth will roll over and die i do think we've exited recession. as the economic recovery broadens, so does the strength associated with that small caps are associated. one is that they are sicyclical 50% of their debt is rate debt with rates to stay low, that's the tale wind and will generally outperform the first part of this year following the recession bottom and it seems as though they are starting to do that >> do you think they'll continue i don't care what they've done

i care what they are going to do >> they haven't. they've only outperformed on the march 23rd bottom. the story is this. we are going to pose most likely the better growth in history small caps are going to benefit from this. they need that in a way some of their small cap bronlers don't we think that will be a good theme with value catching up as well we think small caps will be at the center of this going forward. >> by the way. march was like six months ago. i know it feels like 16 years ago, it was actually in march. are there any big cap names you still off out there? they are overvalued. do you worry about that? >> look, when you put in that pe, you got to put it in

perspective. yes, we are more than averages we were paying dividends in stocks because you could get a bond and it would pay out 10%. stocks are not as cheap but not as expensive as they look. some of the tech names are extended but when you look at the value sectors. industrials, financials. they are not as expensive. if you get a broadening out of the economic recovery. we think those names can participate. it is not an easy trade to buy into we think that's the pain trade and where you got to put your in k inkra mental dollars >> we look to seeing you at some point in person. it is going to happen. >> we can have some is of those

cinnamon buns. >> no. no we cannot we'd have to walk to each other after we did it. with that, the show -- now that is synched i'll have a special album for you tomorrow thanks for watching "worldwide exchange." you will know. ♪ and ballots, are on their way. every day, all across america, we'll keep delivering for you. every day, all across america, ♪ ♪ you can go your own way ♪ go your own way

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good morning, stocks pointing at larger gains as they all close higher more than 1%. we'll show you what is moving. >> nicola firing back calling it a hit job. they've been in contact with the

sec. >> breaking overnight, the international energy agency warning of a treacherous half ahead. experts will break down the report tuesday, september 15, 2020. "squawk box" continues right now. good morning welcome to "squawk box" here andrew ross sorkin with joe kernen and becky is off today. as joe mentioned, things were looking up dow about 175 points s&p looking to open 23 points and nasdaq