tv Power Lunch CNBC October 2, 2020 2:00pm-3:01pm EDT
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good afternoon we begin this hour of "power lunch lunch" with continuing breaking news president trump, as you surely know by now, testing positive for the coronavirus confirming via tweet late last night, early this morning that he will begin quarantining with the first lady who also tested positive the market is lower right now but off the worst levels of the day and you can see dow futures immediately sunk early this morning after president trump tweeted. we have paired back those losselosses quite substantially at this time let's get straight over to shepherd smith >> new developments this afternoon since we learned that after midnight the president and first lady have tested positive. we're told both have mild symptoms and are in quarantine at this moment at the white house. the re-election campaign announcing minutes ago that all
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of the president's campaign events are being moved to virtual or postponed we learned last night that the president's close adviser hope hicks tested positive for the virus. hicks' was with the trumps while traveling. mike lee also tested positive. so too the president of the university of notre dame the two of them were at the supreme court nominee event on saturday we don't know whether that event with certainty was a super spreader event it was six days ago. other west wing employees are being tested today the white house kcorrespondent associations one journalist and staffer who works with journalists also tested positive every else with in president's family and officials close to him, including the vice president tested negative. the doctors are warning sometimes the virus isn't detectable for days after be they are urging anyone who has been around someone who tested positive to quarantine joe biden and his wife report
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negative tests he wished the president well and added i hope this serves as a reminder wear mask, keep social distance and wash hand your hands. testing and contact tracing, effects on the campaign, updates on the president's condition and reaction from around the world that's tonight at 7:00 eastern on the news. >> you touched on this briefly in your report right there what do we know? what would we expect to learn about how this virus may have moved through the west wing and whether multiple other individuals could test positive or have to go to a remote work force kind of situation? what do we know and what might we learn >> we have a team of reporters and journalists on that right now. we're starting to identify a few places where people who have it came together. one of them is that event for the supreme court nominee. that was six days ago on saturday the two people i mentioned were waiting for test results on
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others there was the debate on tuesday. remember, chris wallace of fox news was the moderator he said the vast majority of the people who were there as witnesses were not wearing masks. we know that then hope hicks got the symptoms and it seems to have been spreading from there the root of this super spreader event is unclear at the moment again, that warning from doctors. if you tested necessa eed negat you've been around people who are positive and have covid-19, you must quarantine until you can have a couple more tests the reporting on it just getting started. >> shep, it's. >> caller: kelly i'm curious if first debate will be the last. >> it's a very good question we got word seven minutes ago i think from the campaign that the president will not be out and about at events anymore. they are saying postponements or they'll take them to virtual
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the next debate is next wednesday, i think it's a town hall style debate. the president will have to be free of symptoms and free of fever for 48 hours before he's allowed to do much of anything under the protocol, at least the quarantine will last for quite some time and will have to monit monitor his condition. it's older people who are vulnerable, most vulnerable to this virus further those with comorbidity including obesity which technically the president is he's vulnerable. the doctors are watching him we're hoping for transparency from the white house kellyanne conway spoke about six minutes ago and refused to say the specifics of the president's symptoms only to say they were mild our own reporting is he had a hoarse throat and was tired. how all of this will come together is reporting for
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another minute kelly. >> we talk about october surprises. that's why nobody would have seen this one coming thank you very much. we appreciate it see you again soon shepherd smith let's get to bob pretty strange market day with the dow fluctuating and the nasdaq deeply negative we are open a 50-point range in the pre-market you see that big dip that's the sound of traders selling technology stocks. look at apple. they just slowly sold it off again, most of that came from attempting the buy cyclical stocks like a caterpillar
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144, 143 after the open. straight up as you're buying into those the same with the energy stocks. horrible open for energy stocks with oil down 5% apace was $8 8 salespeopler speaker pelosi was talking about airline stimulus american airlines went from 12 to 13. those are big moves on an intraday basis all the travel names i think the most amazing thing is we're turning around. we're right in the middle of the trading range despite election uncertainty. the reopening fears. stimulus doubts.
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china trade wars absurdly high valuations and now the president testing positive we're still in middle of the trading range in the s&p 500 for the last two months. quite remarkable for the markets. back to you. >> it really is remarkable that even after the debate on tuesday, now this news about the president and some economic numbers that have been at the kindest ambiguous about the pace of the recovery that we're still hanging in as we seem to be. bob, thank you very much positive covid-19 tests by the president and the first lady impacting capitol hill, the election, campaigns and much more turn rather to the economic numbers that we got today.
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higher number of job losses, high number of job losses for female whether that puts a big boost, a tail wind behind these stimulus talks which are ongoing. >> good afternoon. thanks for having me i think that's the bigger news and the bigger catalyst in terms of the stimulus talks. it's not the sexy headlines from this morning and overnight it's really the jobs report and state of the committeconomy bec that what drives voters and re-election chances. looks like the recovery is losing steam when you dig in more and see the state and local government numbers, job numbers being down. i think that puts a lot of pressure on state and local
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officials asking for help. i suspect those calls are coming from republican jurisdictions. that may give a little bit more cover for a republican lawmakers in washington. to support a number they previously may not have supported. i think that's the biggest thing today. >> we're watching in a side panel. the dow which is now waffling between positive and negative but very slightly so yet you say in your note this morning that your base case remains that stimulus remains unlikely until january with a low chance of passing before the election or during a lame duck why do you feel that way and do you just not believe that they can get it done even though there seem to be some slight cooling noises from speaker pelosi and secretary mnuchin >> when i was jotting down the notes this morning, i did write those before the jobs numbers
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came out my view is evolving. it's a lot changing. i'm still cautious on the idea of getting a big fiscal plan through. i thought it was interesting that the speaker would mention and hold out the prospect of an alternative of a streamline package. seems like she is negotiating with herself and undercutting her ability to get a bigger deal i think on the democratic side there are a lot of democrats wo think they will get a better deal, a bigger deal if and when joe biden wins on the republican side, there are concerns about if the president loses, a reemergen mme of the tea party that conservative republicans will
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refund their fiscal conservat e conservativism and take out on republican lawmakers after the delays response of the tarp vote in 2008. a lot of political apprehension. i think things are moving in a better direction than i thought very early this morning. i'm still not convinced. i think the prospects for a targeted deal are better i'm not totally convinced that a big comprehensive package is going to pass. if it doesn't pass before the election, i'm skeptical on a lame duck session because i think they are notoriously unproductive and then we're looking at january i hope for all our sake, i hope i'm wrong that we get a bigger package because i think it's good for the overall economy because we're going to continue to deal with the implications o covid for several more months because a vaccine is still months away.
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>> thank you very much we appreciate your time. kelly. stocks have cut their early morning losses but the nasdaq is still down 1.5% and the dow is out performing in large part because of boeing after that pelosi news you were just talking about. let's bring in ron isana and tom. it's great to have you both here ron, i like to hear how you think through this why to you think pelosi would offer piecemeal aid for the airlines is it a big break in her previous negotiating stance and the prospects for a bigger relief bill here in. >> one of my favorite humans on the planet who says sochl these environments are like swimming through bubble gum i think that's what we're doing
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here there's no clear trend about anything with respect to the recovery trade, the stay at home trade that maybe back in place because of what's transpired with the president and we wish him and his wife well and hope mick hi hicks as well and others there's concern about whether or not the president's own situation will change consumer behavior i'm not quite sure what the calculus is for speaker pelosi taking a slim down package when it's clear given the data that we have a larger package is necessary. i think we see some of that confusion reflected in the behavior of the stock market today. >> tom, same question. it seems a little head scratching and the market on the one hand is pleased at the airline piece of it. seems to be holding out for something larger on the relief front. i'm curious how this will play out from the negotiating tactics. >> it is surprising. who would have known on the announcement that the president
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of the united states has covid that the dow would be positive i think that goes to say that the stock market is not intense sieve but maybe all these things going on in d.c. aren't effecting the market as much as the underline. ron touched a bit on work from home there's a lot of momentum we're seeing there the fact that the aver raj american and the average business owner has embraced technology in way they have pivoted. tom, i totally take your point i was going to have a little fun with the idea the market is moving on earnings with everything else that's going on.
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look at big tech it continues to kind of sink and stumble. if we didn't have those faang stocks and big tech operating, the s&p would be negative so far this year. equal wait in the s&p 500 stocks are down over 10% so far this year th they've done well. going forward, these companies that were the stallworths of last ten years as far as growth have done very well in this work from home environment with cloud computing, mcommunication and th things we need in today's new normal in order to operate
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>> i want to ask you the question i asked barry last hour, are you in the lock down nation basket and how does the president's covid diagnosis affect that, if it all >> i was in the rotation basket. i was in the recovery basket up until today. it's problematic in europe as well i don't know i think it's a tough call. i think we're not out of the woods. i think there's too many open ended questions to make a blanket statement object which trade will be right in the next month. i'd be a little careful because the headline risk, the event risk is a bit larger than anyone
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can make plausible case for it >> seems like that will be the case through the election. tyler, over to you >> thank you kelly, thank you coming up, the markets pairing those early losses with energy and yutilities leading the way after the president and first lady tested positive for coronavirus. what happens now we'll talk to a top infectio you recollect doctor about who is at risk and why the presidential reinte could have been a spadg event. more power lunch after this. ca♪
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welcome back we continue with the breaking news this hour president trump and first lady melania both testing positive for coronavirus. they are in quarantine with mild symptoms what happens next? meg has the details. >> well, the typical procedure if somebody tests positive is for them to go into isolation. that can last from ten days from their test or first symptoms that can be depen dent on how long symptoms last and testing down the line. of course, contact tracing would
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be undertaken figuring out who they came into contact with during potential infectious period and people who are deemed contacts would be directed to quarantine for 14 days at the same time a treatment is being evaluated and the nih guidelines have a few different drugs they have looked at for use in coronavirus remdesivir some experts say it would work better earlier in course of the disease and that could be used steroids are only recommended for those who are in more severe stages of the disease on oxygen. guys, experimental drugs and the antibody drugs regeneron saying they do have potential compassionate use which is the way to get the experimental drugs outside of
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clinical trials but they say they prefer to keep it for clinical trial supply in in addition to that, there is limited product available for compassionate use request approved exception for exceptional circumstances on case by case basis we don't know how the president and first lady are going to be treated. back to you. >> thank you very much we're going to ask you to stick an for us. welcome back opinion we're delighted to have you with us. >> thank you good to be with you. >> fantastic to have you with us as you look at the cases involving hope hicks, first lady and a couple other people who are associated with journalists and the white house press office, when is the best estimate as to when they might have been exposed to the virus
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in the first place >> i think this has been a confusing story today and unfortunately, some of the people who are most at risk of being infected have confused it more i think if you look at the president, the first lady, who give them our best wishes, you look at hope hicks and you look at the several others now that appear to be positive, i think this was probably tied to a common event or maybe two common events that occurred probably some time the end of last week it normally takes anywhere from four to six days from the time someone is exposed to start showing symptoms unfortunately, they can be infectious several days before that this is one where the group is in that category of time the sec group we need to be worried about is those who are now exposed to the president, the first lady, hope hicks and the others who are part of that original group
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those individuals could have been exposed as early as tuesday or wednesday putting it right at the time of the debates. unfortunately, in a room like that given the number of people that might have been infected in that room, the idea that six feet was more than sufficient to protect you is likely out the window and that roomcould be a very important place for another event to occur >> let me make sure i understand you. the chances are the initial exposure of the president and the first lady and hope hicks took place probably toward the end of last week at the top of the hour shep smith reported not only were those folks at but also the president of notre dame was at the announcement of judge barrett, pointing to the supreme court and the president of notre dame has turned up positive. let's turn to the idea of how long it would take for someone
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who has been exposed, for example, at the debate to remain asymptommatic and feel as though they were out of the woods if i've been exposed to someone who has it, president or my next door neighbor, how long until i know i'm okay? >> as you just heard from meg, once you're exposed it's up to 14 days before you might show signs or symptoms or be positive all the people who were at the debate or the rally here in minnesota or at a fund-raiser here in minnesota this week, none of those tests really are that meaningful to me by saying they are negative.
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>> doctor, it's meg here can people test negative but be contagious >> yes i've been a physical therapily vocal critic of the white house testing program. this was not a surprise what happened here. people can test negative if they use the antigen test and be infectious even with the pcr test, the more reliable test, the infectiusness comes up to a level when it's
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positive >> we heard this morning from cory lewandowski said he was tested over the weekend with the abbott test. it has an older test called the id now which is a pcr test but even though that's a molecular test, it's more of a gold standard, that one still doesn't have the sensitivity that you'd want either. >> i've said this has been a big mistake. there's recommendations to the cdc website not to use the test because they are so notably
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unreliable i can tell you from clinical experience right now where people have been using the new abbott test and the old one, there's high levels of false negatives for not picking up somebody infektsed wen they really are is a real challenge i don't know why this test has been used. we argue strongly we need a whole new approach protecting our leaders in this country and those we must bubble so they don't get infected i think we'll see this unfold for the next 7 to 10 days. don't be surprised by more october surprises. i think they're going to happen. >> if i'm an ordinary person, what test should i insist onto find out with maximum accuracy whether i'm positive or not in. >> it's a twofold issue. when should i get tested if you've been exposed, no matter what test you use, it won't likely give you reliable
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results for the first three to five days because you will have the virus inside of you. it will be growing but the test will not yet be positive then when you do have a test done, you want to have the pcr test done at day five or six that's what will be the most reliable that's not instantaneous that takes a day to run it that's when you know you have a gold standard and you're at the highest risk of being infected and showing it and picking it up >> as always, clear responses. we thank you so much for your time today meg, thank you as well kel. >> that was fascinating. thank you. still ahead, we're watching the price of oil falling again today and down 7% on the week now. energy is also the only sector that's lower on the week even though surprisingly it's gaining today. there's wti crude below $37 a barrel we'll have more. the cruise stocks are lower with the rest of the roping trald as cruises remain banned
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welcome back let's get a check on the markets fp dow turned positive briefly it's down 18 points by now it's by far the out performer today. we're up 400 points off of the lows markets were unrattled all morning into the evening after president trump's covid diagnosis. saw boeing move well off the lows that's helping propel the dow. the nasdaq is down 2%. big tech is the big laggard. let's get over to seema for trading nation >> travel stocks meeting was postponed following president trump's positive covid test results. airlines moving higher as speaker pelosi pushes for additional government assistance let's bring in the trading nation team to discuss the sector craig johnson and danielle shay.
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danielle, your thoughts on the cruise lines it was in this meeting that cruise line ceos were hoping to detail their safety game plan on how to return to sea >> this is true. this was good news for now when these things start traveling again, who knows which ports will remain open and they are surely to become floating petri dishes who wants to go to the caribbean wearing a mask the only way to trade them is to the downside >> the sailings in europe have been successful and they have been able to keep covid off their ships. with that said, is there one stop within travel that you think will be a good proxy for this broader sector going forwa forward? >> take a look at the chart of bookings.com this is a stock that looks like we violated the up trend support line and looks like to us this
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little relief rally we got right now would be a great opportunity to be shortening into this particular stock i'd also note this is a stock covered here at piper sandler and he just initiated coverage on it and he makes two observations that stand out to me first, is that the tsa numbers are down about 60% your over year we're not seeing a lot of activity at the airports and secondarily, when you go back and just look at how long it might take for these bookings to recover to 2019 levels, it could be until 2024. not only do the technicals look week but the fundamentals seem challenged too >> thank you so much for bringing us your insight head to our website or follow us on twitter kelly, back to you thank you very much. still ahead, amid all this uncertainty in the white house, the future of the economy hangs in the balance the jobs report falling short of expectations just as the house passes a $2 trillion stimulus
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. welcome back the oil market is closing up for the day. another rough session. let's go gown to eric for the sessions >> oil prices slipping again today. both benchmarks posting their second straight weeks of losses. the president's tweet overnight sent oil prices even lower for this session but continued global demand concerns and increased output from opec are two of the other key factors impacting prices the u.s. rig count rose for a
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third week in row. that's the first time that's happened in two years. despite oil's decline, energy stocks are actually out performing today back to you. >> thank you very much nancy pelosi saying an airline aid package is imminent urging the companies to delay furloughs which could be quite massive >> reporter: that's one area the democrats agree. she says there are five areas, unemployment insurance, stats and local funding, the child tax and earned income tax credits, language on testing and tracing and other appropriations pelosi said she is expecting a response from the white house on
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those areas and others with more detail and in the meantime she said we continue to work on the text to move quickly to facilitate an agreement. on msnbc earlier today pelosi said she hopes republicans are at an inflection point >> this kind of changes the dynamic because here they see the reality of what we have been saying all along this is a vicious virus. >> reporter: now house lawmakers have taken their final votes of the day which means that members are going back home. democratic leadership is warng they can be called back to washington at any time if a deal emerges. back over to you >> do we know where the senate stands on this and i guess the senate is a proxy for the white house. >> reporter: the last thing that we heard from senate leaders is
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this democratic bill was outlandish i'm not so sure that senate republicans are a proxy for the white house. the two have been on some different pages particularly on items like direct payments to families right now this is a deal that's going to be agreed upon between secretary and between the spoker a -- speaker and it will be up to the white house to try to sell this to senate republicans >> very interesting. thank you. negotiations are continuing on day on a disappointing jobs report highlighted the sluggish economic recovery for most americans. if not sluggish, slowing from where it had been. is this a more important time than ever to get a stimulus deal done and can a deal get done before the election? welcome, good to have you with us >> good afternoon. >> great to have you with us
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the soggy economic numbers that have come out in past couple of days yesterday on income, today the jobs report, would lead you be be even more strongly in favor of a robust stimulus package >> a robust stimulus package is what is needed to really help americans continue to survivor through this very difficult pandemic the number numbers don't surpre the earlier stimulus, enhanced unemployment and various injections into the economy are now ending we hear a tsunami of additional layoffs. congress should have acted months ago the senate has drug its feet we need a $2 trillion, at least,
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stimulus we need it to enhance unemployment benefits. that will boost consumer spending we need to help state and local governments and the airlines and others we have to put money in the hands of those most vulnerable those are the unemployed, people facing evictions and foreclosures now is the time to act >> it appears, as you point out, without taking sides on this at all that it was those direct payments to individuals, the $600 additional weekly unemployment compensation that kept consumer spending as high it was over the course of the summer some of the other things may not have helped as much but those things clearly did show up in the data we had been seeing and the absence is perhaps why we are seeing now some fall off in consumer spending, a decline of 2.1% in household income >> this is basics about the
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economy. one of the basics is that consumer spending is the primary driver a large component of consumer spending are things people spend on necessities on food, on clothing, on shelter, on children, on families things they need to be able to survive. on gasoline for their automobile, on tolls for their cars you are going to give a boost to the economy. the boost is not a boost so you have booming economy we are now in a survival mode. i think with winter looming on the horizon, with the number of cases beginning to tick up in many instances with now people seeing even the president of the
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united states can be infected. that no one is immune. this is not a hoax this is not fake news. this is not made up. this is a serious pandemic that we face. congress should have acted before i hope the wherewherithal is the to see when we say we need a stimulus, it's not for talking points it's because people need it. >> all right have a great weekend >> thank you >> it was a rough one last week. rough for the saints and lsu >> i'm hurting >> thanks. >> all right kelly. >> we'll continue to follow markets after president trump tested positive for covid-19 talk about how the bond market is responding in a moment. we're also seeing a safety trade play out in stocks as material, industrials, energy and utilities are the best rfmi stors we're back in a couple 20 years ago, i was an hourly
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we all know that movement is restricted the fed wants it that way. they base lick have their thuic on the scale if you look at an intraday chart, most of the big moves especially the buying occurred long before the number it was more in concert with the news release of the president and first lady contracting the coronavirus. when you add a two day chart, it has come back solid. it hasn't taken out yesterday's high yield that is somewhat important as we stand now, we're up one basis point on the day on tens, three on the week. the 30 year bobbed most volatile and if you look at an august 1st start to tens this is very interesting chart. early october, august, you make the all time low yield close around 50 basis points we have built a cushion that takes away near term traders trading on the notion that we're going into or going to extend
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negative rates fu finally, the index is up on the day but on the week, down three quarters of a cent >> mr. santelli, have a great weekend. still ahead, the wall of worry getting steeper, bigger for unvestors wiu investors with the president testing positive for coronavirus. what is still safe to buy in this market. we have morepor nc nt. "weluh"ex
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welcome back let's get final check on the markets. the dow down by 36 pounts. we' points we're well off the sessions the s&p 500 is down more than .5% right now the nasdaq is down about 2%. so here for trader take on this volatile day is tim seymour. we were talking about the weakness in big tech the fact that the be sectors are outperforming to day what does this say to you? is it possible that they're
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discounting a biden win that maybe there is a regulatory r risk i'm curious how you perceive the markets. >> what we would like to do here is refer to yogi berra quotes. we're going to pair up in threes think about this you have the reopening trades. you can make an argument that the transports are a bit of a reopening trade. certainly airlines which are front and center with talk about airline stimulus is bad as the news flow has been on airlines, if you take best of breed which i believe is a delta or a southwest, holding the bottom end of an uptrend. a slow uptrend transports which are up today in a down tape and outperformed the s&p 500 by 25% since mid may are part of that retail, there are certainly parts of retail that are in the sweet spot of either the stay at home trade, e-commerce trade or walmart is part of that but then there's been the
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recovery stories, bed, bath & beyond the last couple days. but then other retailers, that is a best buy. they probably had two holiday seasons in one over the last couple months. i think the third part of that trade is tech. the chart guys will tell you that we could go a little bit lower and if you look at the triple qs which is the etf that plays the nasdaq 100, i think you could look at a 250, 255 before you find a base but in the environment that we have, i think, you know, big mega cap tech will continue to be defensive i think that is ho the markets have proven over the last six months. >> it's interesting again, tim, like i said, we have industrials, materials which are leading us today at least outperforming and yet you have the price of crude down another 4% or so. it's just -- maybe this is just a lot of repositioning or maybe the market frankly doesn't know
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what to make of what's ahead of us in the next month or two. st what do you think >> we definitely don't i think the dichotomy between crude and copper which was down 5% and some of the resource trades that i think are sniffing out what, you know, leads the uncertainty of washington on stimulus aside they caught some big bid two to three weeks ago. it may be finding a range. that has a lot to do with outperformancest trades. wti, crude, whatever your following i think is a function of some of the structural issues in that sector.
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>> all right ty, i was going to say go ahead. i know we're out of time tim, thank you >> i was going to ask tim a final follow up question what he thought the most important thing is for investors we had a heck of a lot of news flow from the economic numbers to this morning's jobs report to the debates and then capping it all off, of course, the president and first lady and the diagnosis as tested positive for coronavirus. >> and tyler, i hope everyone caught our discussion with the doctor earlier this hour it was super interesting both because the time frame for what happening with covid-19 and the who us is maybe coming a little bit more into focus maybe it goes back to the end of last week to that supreme court ceremony that we saw in the rose garden and what he also said and he and
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meg were discussing about the testing and reliability of that is something that, you know, we need to pay attention to >> yeah. really was he basically said that the antibody testing is not -- not in any sense the best. best is the pcr test you ought to take it on day fiv or six after you think you've been exposed have a great weekend, kelly. you too, sir thank you for watching "power lunch" "closing bell" starts now. >> it does of welcome to "closing bell. i'm along with sara eisen. president trump tested positive for the coronavirus and that's adding a new level of uncertainty to an already cloudy picture for the markets. stocks all over the map as we head into the close. let's have a look at what is driving the action right now stimulus negotiations remain in focus after the house passed a $2.2 trillion proposal airlines moving hi
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