. it is 5:00 a.m. on cnbc headquarters, and here is your five at 5:00 the dow coming off a more than 600 point gain helping lead the charge higher is apple, more praise from the oracle of omaha. take a look at zoom popping after a stellar quarter. one investor says record breaking growth is unsustainable. we'll get to that on capitol hill at this hour. senator elizabeth warren and bernie sanders are calling for a new billionaire tax potentially

costing the likes of jeff bezos an extra $5 billion, and the unlikely customer fueling the growth at disney it's tuesday march 2nd, 2021, and you're watching "worldwide exchange" here on cnbc ♪ ♪ good morning, everyone i'm seema mody in for brian sullivan right now kicking off your tuesday morning, let's take a look at stock futures following that rally yesterday. this potential pullback coming after a recording breaking day on wall street snapping a losing streak dow down 91. the blue chips and the nasdaq, though, coming off their best day since november yesterday was the best day for the s&p 500 since june gaining over 2%. leading the dow higher on monday, boeing, apple, dow, and

goldman sachs seeing gains of nearly 4%. the nasdaq 100 leaders, include zoom video after earnings tesla and cintas, a couple of other winners. the move in equities coming as the yield on the ten-year continues to slide off last year's big surge that we just saw. the ten-year yielding 1.43%. let's go worldwide in asia, stocks did close mostly lower after a senior chinese official expressed concerns about a risk of asset bubbles in foreign markets. the shanghai composite closing down over 1% in europe, we are higher across the board, germany up fractionally, ftse 100 higher by 4/10 of 1% france up by 2/10 of 1%. new this morning in d.c., a group of democrats on capitol hill, including senator bernie sanders and elizabeth warren are proposing a 3% total annual tax on wealth exceeding $1 billion and a lesser 2% annual tax on the net worth of households is

trust ranging from 50 million to $1 billion under this ultra millionaire tax, the hundred richest americans would hand over more than $78 billion of their personal fortunes. jeff bezos alone would face an extra tax charge of potentially $5.4 billion elon musk over 5 billion and bill gates 4 billion elizabeth warren will be on "squawk box" later to discuss this new proposal. disney ceo bob says his company fueling its growth speaking at the morgan stanley telecommunication conference yesterday. c c chapek said 50% of global subscribers are from adult that is don't have kids when 50% don't have kids, you have the opportunity to think more broadly about the nature of your content disney signed up 94 million

customers since launching in november of 2019 take a look at shares of zoom surging after the company reported 4th quarter earnings and guidance above expectation zoom says revenue grew 370% year on year and expects fiscal first quarter adjusted earnings of $0.95 to $0.97 above the $0.72 expected zoom up 32% this year. back to d.c. to capitol hill now and the developing story around president biden's $1.9 trillion covid relief package. the president expected to speak with democrats once again today with the hope of unifying the party ahead of the senate debate nbc's tracie potts joins us live from d.c. with what's going to happen in washington, d.c. tracie, good morning >> reporter: hi, good morning. window that a debate and even a preliminary vote could happen as early as tomorrow. there are no republicans on board. the focus of president biden and the white house today is to keep

all 50 democrats on board. >> a shot in the arm for americans and for congress we're going to talk about that as the first single dose vaccines are administered in the u.s. today president biden speaks on the pandemic and he's calling senate democrats for some lunchtime lobbying to shore up support for the american rescue plan. >> we have reserved time in his schedule to ensure that he can be engaged, roll up his sleeves and be personally involved. >> reporter: the first senate vote could happen as early as tomorrow, but democrats are not all on the same page some want to tighten income requirements for the $1,400 payments others want to roll back business tax breaks to make up for getting rid of a minimum wage increase. >> i expect a hardy debate >> reporter: congress at odds as the pandemic rages on.

the cdc reports cases and deaths are slowly creeping back up. 2% over the last week. >> i am really worried about reports that more states are rolling back the exact public health measures we have recommended. >> reporter: also today, fbi director christopher wray testifies on the january 6th capitol riot lawmakers want to know what intelligence the agency had before the attack. and senators are asking for some hard evidence on that. they are asking the fbi and 20 other agencies for dpocuments o their plans in the days before the attack. >> i imagine senators will focus on the fbi memo, the day before the riot to get more evidence on exactly how this was planned. >> reporter: exactly, and that memo came out very late. it came from one of the fbi field offices but didn't make its way up the chain to land on

the desk of the people who needed to see it it warned that there could be protesters showing up talking about war and planning acts of violence against the capitol which of course is exactly what we ended up seeing. >> tracie for the latest in washington a lot to look forward to in d.c. tracie potts. back to the markets now, stocks poised to pull back after that strong start that we saw yesterday. this as investor anxiety over yields and the rapid rise in borrowing costs appears to be easing our next guest says rates could pull back even further i'm joined by josh weim, portfolio manager at hennessy funds. yesterday's big move in the market, s&p 500 seeing its best day in nine months, what would you say fueled stocks yesterday and is it sustainable. >> good morning, good to be with you, seema i don't know if it's sustainable, that was quite a move yesterday i would say that yesterday's

move was mainly a function of, you know, interest rates, and so we went from 1% on the ten-year very quickly to 1.6 per day last year on ten-year pulling back to 1.4, i think it's a small move but it means the lot. yes, that back up in rates to 1 p1.6 is overdone, largely a function of what happens every now and then, which is talk of inflation. we can talk more about it. i think the idea that inflation picks up in a meaningful and permanent way, there's certainly no evidence for that, and don't see that happening but i think that, yeah, yesterday's move was just kind of a pause in the worry about, you know, a back up in rates. >> yeah, and i wonder if investors should not read into yesterday's move too much because by the way, the first day of march last year stocks also ended the day higher by around 2 to 3% we know what followed it, a bruising month for the month of march in 2020.

do you think history could repeat itself? >> a bruising month. well, no, i don't. i mean, certainly it's hard sometimes to separate what you hope will happen and what you think will happen, and i hope not, and i don't believe that will be the case i mean obviously last march was, you know, this would be the polar opposite of last march we are now kind of going in the right direction with a third vaccine, and i think the sense is that this is all happening a little more quickly than people would have thought just two or three months ago, so i think that, you know, there's certainly no exogenous event like a pandemic that is going to get in the way of what's been a good start to the month. >> you say with the dow trading above 31,000 and the nasdaq above 13,000, that this market still has more room to run, working off this trifecta of that stimulus big getting passed and moving forward to the senate, and b of a putting out that growth estimate of 7.5%, u.s. gdp for this year

that's your bullish thesis for this year? >> growth, i think it's been under estimated. it's hard to model in what growth will be right now, there is so much pent up demand, so yeah, i think growth and the expansion margins, you know, and where we are with, you know, with rates and multiples, so rates at 1.4 on the ten-year, still historically low it's about where we were when the pandemic started or right before to put that in context, you know, we have about a 4 1/2% earnings yield when you look at that versus the ten-year, that relationship is as good as it was before we started talking about the pandemic, and then a lot of cash on the sidelines i would note, you know, s&p 500 about $7 trillion on the balance sheet. and private equity at about 1 1/2 trillion that's an unlevered number so i think there is a lot of, you know, wind at our backs, and yeah, the growth i think when i hear about -- yeah, go ahead sorry.

>> on growth, what's your best stock pick right now >> best stock pick >> so, looking at our hennessy mid cap 30 fund, looking at valuation and earnings growth and stock price momentum, i would point out quanta power services growth in kind of the high single digits trading at about 19 times earnings and certainly some significant stock price momentum recently. quanta sits at the nexus of some interesting trends, very timely. it is an infrastructure and services company, mainly for utilities. so as we saw in texas recently about two weeks ago, certainly highlighted the need for grid hardening, you know, to deal with adverse weather as well as modernization, and as we hear, you know, more and more of the integration of renewables. a company like quanta is interesting, and speaking of stimulus and infrastructure

spending that is very timely. >> and that seems to be working. shares up nearly 19% josh, we're going to leave the conversation there, but thank you for joining us today josh wein of hennessy funds. and when we come back, how a fourth covid vaccine in the u.s. could become a reality by may. plus, travel ceo say green chutes are emerging. if those comments could make you some money, and apple coming off the best day since october we speak with one shareholder who says his thesis sees apple heading even higher from here. orwi ehae.orhour ahead f "wlddexcng don't go away.

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visit pancreatic cancer collective.org. welcome back to "worldwide exchange." a number of stocks to watch at this hour, and we are going to start with roku. shares trading higher after the company announced it is buying nielsen's video advertising business financial details were not disclosed. nielsen's technology will let roku replace traditional ads with targeted digital spots on streaming platforms. shares of roku up about 2% in pre-market shares of vaccine developer novavax trading lower this morning after its latest quarterly results fell short of analyst estimates. the ceo telling cnbc the covid vaccine could get fda approval as early as may. certainly exciting news there. we are watching shares of michael's they got a nice pop yesterday on the deal talk of 12% during the regular session

reports say the craft and hobby retailer is attracting buyout interest from apollo global management, the private equity firm michael's shares are up more than 300% over the past year. still on deck, two boosts for bitcoin and the cryptocurrency as it flirts with $50,000 once again today's big number, $700 billion that's the total value of m and a activity announced so far this year according to data from refinitiv, that's a jump of 56% over the same period last year pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life.

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from 12 countries, over 10 years. olay's hydration was unbeaten every time. face anything. find out more at olay.com what you're seeing is enthusiasm about the pace of the vaccine coming out, older people who are getting the vaccine earlier, people over 65. so some of the things that we thought was going to happen aren't happening they're better than we thought we really thought older people would be more cautious, turns out they want to get out of the house too. >> we do have lots of optimism that over the passage of time as the vaccine is more widely distributed, as the pandemic starts to recede, that our customers are anxious to get out there and be face-to-face with their business partners and their customers. >> we saw when people came out of lock downs in the spring,

they wanted to travel. we had a fairly strong, well, stronger than we thought last summer because people did have that pent up desire to travel. i don't know about you, but i want to travel i haven't gone anywhere. i want to get going. anecdotally i hear the lot of the same things from people. >> that's what we're focused on, and that's the travel that's going to come back in full force. >> much needed c suite optimism for a sector beaten down by the pandemic travel is on the rebound take a look at the six-month chart of the invesco leisure and entertainment etp up 50% in september lead by the cruise lines and hotels joining me on whether this can continue, truist leisure and equity strategist and managing director great to have you on patrick start with the cruise lines, two financing options leveraged by the cruise lines, royal issuing a secondary of $1.5 billion, and norwegian issuing more debt, another 500 million.

typically news of issuing shares or more debt would be a source of concern the stock performance of the cruise lines suggests otherwise and if you look at the pricing of the bond yields, norwegian's yield, down 5.7%, and the debt it raised a year ago at 12%. what does that tell you about how investors are changing their view about the outlook of these cruise lines. >> investors are two things, one, either they're taking a very long view that, hey, things will come back to normal sometime by later next year, or on the other hand, you have the -- what do we call the pure momentum trade where you're not necessarily looking at earnings per share, which we've historically valued these companies on but just really trading on pure momentum, and that's the case of many, if not all names in my sector right now. >> of the cruise lines, norwegian has raised the most debt and equity, 12.3 billion in

debt over the past year. equity of around 10.7 billion. what time line are you working off of, where they're making money and back at sea? >> well, back at sea, and making money are different things right now. i think it's realistic to think that you'll have some paid cruises by fourth quarter of this year. but that said, you will not be at full salings of their full fleet and because of that, you'll still be on the bottom line losing money. you know, i would expect possibly turning to profitability on an earnings per share basis, you know, it could be towards the end of next year when you really have all the ships, perhaps, sailing with paid passengers. >> seems like the market doesn't really realize this, they may not get back until the 4th quarter. there's a lot that goes into the

mock voyages, the simulations that the cdc is managing the market seems to be working off the future bookings data, the cruise lines, hotels or airbnb here's my question, do you think the bookingsdata is a good gauge on future travel demand when the industry has sort of changed what it requires now there's flexible cancellation policies, no change fees we're not sure if the future bookings tell us about people that want to go on a trip i i booked a trip in august. who knows if i'll actually go. >> what's a bit different is the rollout of the vaccines, maybe if we book last summer for, you know, travel around thanksgiving thinking, hey, we might have, you know, flattened the curve by that point, which certainly didn't happen, well, right now, people are getting vaccinated, i have actually gotten vaccinated and, you know, i feel pretty confident about doing my summer plans, so that's certainly what's changed now, interestingly, seema, we

do, as i have mentioned before on the program, we do a tremendous amount of big data research, looking at actual reservations for hotels, cruise lines, pricing on those. i can say we have actually over the last six weeks seen real green suits on the leisure side, especially for ford reservations to places like hawaii and florida, real leisure markets, so that's very encouraging. >> and where does that leave a company like airbnb which surprised on earnings, everyone is expecting a bad print given the run up in the stock, they wouldn't be able to meet expectations or surpass expectations, but they did, but at the same time, we discussed this before. they don't have a loyally program, if they go after the business traveler, they've got to beef up their points structure. right. >> unfortunately, i can't specifically talk to airbnb as i don't cover it, but i cover similar names, and i can talk in

generalities you know, i would say that uptick in leisure travel is positive for companies that play in the leisure space, and, you know, i would say along the lines of rising tides continue to lift all boats. >> shares of airbnb at 195 a share. patrick, thank you for joining us today patrick scholes of truist. let's get a check on this morning's other headlines. nbc's frances rivera in new york with the latest. >> good morning to you we start this morning with a new weapon in the fight against covid-19 that's on the move. millions in doses of the covid johnson & johnson vaccine have shipped out and are expected to be delivered within the next two days in clinical trials, the johnson & johnson vaccine demonstrated a 72% efficacy, and it was 100% effective at preventing covid related hospitalizations and deaths the vaccine can also be stored at regular refrigeration levels and requires just one shot senators will grill the fbi

director today over intelligence lapses in the days leading up to the deadly insurrection at the u.s. capitol lawmakers are expected to question christopher ray over the fbi's preparations of the riot, and the investigation into the january 6th siege. he'll also face questions about the national security threat from white nationalists and domestic extremists. take a look at this extraordinary time lapse video of mount etna erupting on monday it dumped ash and rock fragments on towns nearby. the latest blast is part of a series of eruptions that began on february 16th fascinating to watch, just as long as we're watching from a distance and stays safe for everyone else. >> stunning images thank you for bringing those to us, frances, have a great day. ahead on "worldwide exchange," move over tesla because one auto maker is setting a new audacious goal of electrification before the end of the decade. if you haven't already subscribed to our podcast, if

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i'm trying to do some homework here. stocks coming in hot for the month of march as all three major indices post their best performances in months futures point to that momentum fading, not giving up any momentum, shares of app and will zoom, -- apple and zoom. will it be good news for target

with the latest quarterly results due next hour as it looks to keep business booming amid the stay-at-home shift. it is tuesday march 2, 2021, and you are watching "worldwide exchange" here on cnbc ♪ ♪ welcome back, i'm seema mody in for brian sullivan let's take a look at stocks futures. we are halfway through the 5:00 a.m. hour the dow up over 600 points in yesterday's trade, right now, premarket, the dow is currently down 3, and nasdaq lower by 62 and the s&p 500 off by around 17 points just to put yesterday's move into perspective, the nasdaq saw its best days since november the s&p 500 coming off its best day since june the move higher in equities comes as the yield on the ten-year appears to be leveling off. remember, hit a one-year high of 1.6% last month, here we are at 1.43%. and keep an eye on bbone: it's

been all over the place. gold man sachs has restarted it crypto trading desk, and will begin bitcoin futures for clicl clients this week. tweeting yesterday in part kwoetd iquot i have been doing a deep dive in crypto, a real test to being intellectually open to new and controversial ideas, maintaining healthy skepticism while deepening ones understanding requires one to engage in what steve jobs described as a prerequisite for superior entekt intellect. back to equities and the overseas action in europe. we'll send it over to joumanna bercetche in the london newsroom >> good morning, seema, we have european equities search for direction this morning starting off slightly on the negative side of things you can see that in the past hour we have turned into

positive territory 5,100 in the u.k., off about half a percentage point. we're watching closely for the u.k. budget set to be unveiled tomorrow could have huge implications specifically on some of the home builder stocks that we have been watching closely, and some are at the top of the ftse 100 one company in particular in focus there today has said they bought a 5% stake on the back of that luxury good maker is down a fraction of a percentage point dax in germany up 2/10 of a percentage point we're seeing good performance in industrial names despite we canner data on the unemployment front. i want to turn to oil stocks we are seeing a selloff in this part of the market today there is some expectation that come april, opec plus would be considering raising production and obviously that is not a good thing for the price of oil at decent spot terms. on the back of that, we are seeing a selloff in some of the

major oil companies in europe, and some of those are majorly based in the u.k bp, you can see down about 1 1/2 percentage points. shell down similar amounts and that is weighing on the european indices overall, but in light of yesterday's performance, we are now seeing some gains and stock markets are trading in the green in europe, seema. >> joumanna bercetche with the latest in europe thank you. sticking with the markets i'm joined by potomac wealth advisers, what a first day of the month for march. what did you make of it? best performing stocks, really travel, leisure, and energy. what stood out to you? >> it was a continuation of the reopening trade. a lot of optimism on vaccines, and i think we saw the ten-year pull back a little bit you covered that earlier i think that is really going to be the driver this year, and i think fears of hyperinflation, and interest rates, the ten-year heading towards 2%, and staying there are a bit exaggerated and

i think once investors realize it's a global economy, there are a lot of head winds against super growth around the world. there's high unemployment still. the u.s. is one of the most aggressive central banks and one of the most aggressive fiscal responses. it's not being mirrored around the world, and i think when people realize we may have slower, steadier growth, i think they decided to dip their toe back into stocks. >> are the concerns around inflation warranted when the latest inflation read on pce, personal consumption expenditure indexes, and well below the fed's target of 2%. >> well, inflation is going to be dislocated in areas that the pandemic has dramatically hit like new housing, and housing costs, and materials and commodities, it has gone up. but what's going to happen with rental prices. there's going to be a decline in areas like that. you also, as i mentioned, when you have high unemployment, you have less wage pressure, and

that is going to be a head wind. you also just mentioned how opec plus is going to be meeting again. they have very hard time keeping their production targets and limits so eventually, there are going to be counter forces to the burst that we just saw in terms of inflation fears, and i think that leveling out is going to prove to be optimistic for stocks. >> you have a stimulus bill continuing to be debated in washington, retail earnings on deck today with target and kohl's and unemployment job sport out this friday. what's your top trade today, mark >> well, it really depends if you're one of those aggressive investors that want to be involved in the emerging technologies and the disrup t ters, and if you are, that's different than someone more for the slower, steadier investment profile. we fall more into the latter but if we want to be a little more aggressive in that sphere, we really think that emerging markets have very good

opportunity for investors. they have favorable debt, low government debt overhang, favorable demographics, they don't have the ageing populations that we, europe and japan have, and i think that they're going to present investors with significant growth opportunities this year, but well into the future that's where the growth is, and i think especially in asia where they've handled the pandemic well and the economies are rebounding well from this pandemic could be a good place for investors to park some money. >> and some bullish comments made yesterday at the council on foreign relations about china specifically opening up its capital markets and over time that becoming a bigger place to park your cash for investors and we're looking at the emerging etf, outpacing the gains of the s&p 500 so far this year it's been a winning trade. mark, thank you for joining us, mark avallone. >> good to be here. coming up on "worldwide exchange," ant group reportedly defying pressures from chinese regulators as it faces mounting

friction over its scrapped ipo as we head to break some of your other top stories. an amazon manager is suing the tech giant, accusing the company of discrimination. she claims amazon hires black people for lower positions and promotes more slowly than white workers. amazon is investigating claims. nike announcing the general manager of the north american division resigns after a report of her 19-year-old son apparently using a credit card in her name to buy more than $100,000 in sneakers to resell them for a profit. and volvo announced its entire auto lineup will be fully electric in 2030 car makers planning to phase out fossil fuel engines by the end of this decade "worldwide exchange," we are back in a moment

welcome back, we are following a number of developments following ant group in china the financial times reporting the company is defying the central bank over demand of more information over its consumer data ant group has shared a fraction of its user information. the "wall street journal" reporting ant group's executive chairman is trying to calm employee discontent over the company's pulled ipo the journal citing a memo to workers says employees were told the company would look for ways to help them monetize shares after the listing was called off.

bloomberg reporting ant group has scrapped a share buyback program for current and departing staff partly because it's not sure how to value the company. sticking with technology, shares of apple higher once again in the premarket after their best day since october 12th the company says for the first time since the pandemic began, all of its u.s. retail stores are once again open to the public apple also getting some renewed praise from warren buffet in his annual letter to shareholders. joining me now is one of the shareholders, investors portfolio manager, tim lesco good morning to you. >> good morning. >> have you been building a bigger possession in shares and taking advantage of the pullback. >> after last year's run in apple, it's hard to be adding a lot o existing position. certainly for new clients, we continue to add apple. we continue to be bullish on it for the long-term. we're particularly heartened when people like warren buffet recognize that technology stocks can be value stocks, and share

repurchases are very powerful for the long run for a company like apple. >> trading at 127 a share, what would be fair value to you >> well, you know, fair value we look at an earnings and ebita basis. so you know, we're probably looking in the 150s to 160s for what current fair value is it's one of the few companies that continues to show the ability to organically grow new business lines, and you know, the pandemic didn't really shut them down, so the store opening wasn't really as big a story to us as perhaps it was to the market but you've had a bit of a revaluation of some of the higher valuations in tech stocks over the first two months of the year and i think there was a bit of a relief rally. >> i'm looking at a six-month chart of apple, traded in a narrow range, down 2% in the past six months. what would be the next catalyst for this stock, i guess? >> you know, everybody knew we were going into an iphone super

cycle and a lot of that got priced in throughout the summer. they were also able to successfully sell phones when their stores were shut for apple, it's growing into the valuation that had gotten perhaps a little bit ahead of itself and you're right, if you look back to august and september, we're really close to the same levels, which is nice in a stock, really, you know, stocks are not going to go up 40 and 50% a year you do need periods of consolidation for the earnings to catch up to the valuation >> i think apple is one of those stocks as you say in your notes here that not only offers growth, but it does have a dividend yield and continues to grow its repurchasing, continues to repurchase shares as well i'm wondering if yields do tick up again, and we get to the 2% level that some analysts are calling for this year. if that could compete with apple's yield. >> i don't think anybody owns apple just for the dividend. it's nice that you know you may have long periods of

consolidation in a stock that you get paid while you wait and i think what it is, is apple is incredibly strong cash position and capacity to both issue debt when rates are cheap, and buy back stocks is what warren buffet was referring to. they continue to be fantastic stewards of capital. >> tim, while we have you, we're also watching shares of zoom i want to put up a screen, popping in premarket it was higher than 11% seeing a gain of around 8.6% zoom says sales rose nearly 370% year on year outlook also topping estimates tim, i think some of us kind of cringe when we looked at zoom's earnings and thought, oh, no, an upbeat outlook for the future. i we're going to be working from home for the foreseeable future and not face to face what stood out to you in the report >> it's eye popping growth, and the hard part is zoom really didn't need to have such a bullish outlook. they said a lot about their future earnings expectations, when everybody's expecting as we

reopen that we are going -- this has been more persistent than we expected we are going to see people go back to work we are seeing people want to go back to work, because they can't work at home they have children at home i'm a little bit skeptical of the future growth rate that they laid out, even though their service is fantastic, and we're all learning a new way to do business i don't see the growth rates in the future. >> and we did see a deceleration in some metrics, including sequential sales growth, customer acquisition, rpo led by the america's region but what's the biggest risk in holding shares of zoom here as the economy reopens? >> it's straight up valuation. >> yeah. >> as the economy opens you begin to see other companies become more attractive, whether it's the energy sector or the financial sector, so people will eventually roll out of the highest valuations and roll into more reasonable and attractive valuations, so it's not zoom's business that's at risk. it's just the valuation of the stock. >> and competition, microsoft and cisco, which name do you think is giving it a run for its

money if at all. >> i think microsoft is giving the most run for the money it's interesting that cisco has been in the business for a very long time, but really unable to capture the consumer side of that business which zoom has and as people learn to use things like zoom and teams, there's only going to be two or three players that maintain that persistence. there are six or seven players out there. i know that i have web x meetings, zoom meetings, skype meetings, and teams meetings it's really about how people do business, and i think that's going to be microsoft teams on the business side, and zoom on the personal side. >> we have become masters of them all throw it at us and we'll be on the video platform zoom moving up 8% in premarket tim thank you for joining us have a great day. >> thanks for having me. don't miss a first on cnbc interview with the zoom cfo on "squawk box" in the 8:00 a.m. eastern hour. a tale of two retailers, target and kohl's preparing to release quarterly results.

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welcome back, let's get a check on futures on this tuesday morning. we are lower by 70 points on the dow. nasdaq lower by 43 this pullback coming after a record breaking day on wall street where we saw stocks move higher sharply across the dow, s&p and nasdaq, all eleven s&p 500 sectors ending the day in positive territory this as the yield on the ten-year continues to slide off that 1.6% level we breached last week we're currently at 1.439%. let's take a look at the biggest laggards on the dow yesterday, visa, intel, boeing, walt disney and chevron rounding out the top

five for the dow there's bitcoin, you can see higher by 1% among the morning stocks on the move, we're watching china based electric vehicle maker reporting a larger than expected loss for its latest quarter it's also issuing a sales forecast for the current quarter that shows slower than expected growth, and shares are down nearly 5% here in premarket. a pair of big box retailers with two very different stock charts reporting earnings today. target is expected to report a jump in same store sales boosted by faster deliveries and demand for home goods, electronics and beauty products. shares up 5% this year meantime, kohl's is projected to post a decline in profit, hit by sluggish demand, apparel and other discretionary goods during the pandemic kohl's stock is outpacing target this year after a group of activist investors took a stake in the company and are seeing control of the board shares are up 40% in 2021. three things you must know about

retail earnings. i'm joined by stacey widlitz, cofounder of deal makers, ladies, great to see you, stacey, i'm going to start with you. you say target is no longer your grandmother's mall, and this is a stock investors should be owners of, tell us why. >> target the new mall obviously we've seen huge share coming out of the mall, coming out of department stores, and target is starting to own the mass premium space they've got ten brands, private brands that are over a billion dollars. they're fulfilling 95% of their orders from stores which means lower costs on digital because the consumer is also picking that up, coming to the store 40% of the time they're ordering online it's a margin story, a market share story, it's the new mall, and certainly you're seeing comps that they already reported for holiday up 17% with store

comps up 4%, which is incredible so i think they're really the one stop shopping future mass premium player that's going to own this channel. >> and i guess the question jerone is you look at the last quarter, such a strong report from target. it gained market share across all five divisions, electronics, home goods, apparel. sales of electronics in the last quarter rose 50% those are really tough comps to beat. >> absolutely. it's all because during the pandemic they executed so well, and we agree with stacey said, that target has become the one stop shop, the department stores used to be the one stop shop but with the pandemic target stole the market share and now its clientele is really accustomed to come and enjoy the same day fulfillment, same day services, as drive up and pickup have all

increased over almost 200%. >> stacey, being a one stop shop, how critical is it that the big box retailers and department stores that they stay nimble and flexible with the type of inventory they hold as consumer preferences change with the economy reopening? >> it's so crucial, and if you think about kohl's, almost 60% of their business right now is coming home, kids and athletic now, if we think about when we come out of the other side of the vaccinations, everybody's going to want to bust out and go out, and then you're going to see this shift to apparel. that's really one of the spaces kohl's has been under performing it's important to have short lead times and literally be able to pivot to where the consumer is going, whether that's categories or whether that's how they want to shop, and also, you know, you look at target they teamed up the other day talking about they're going to have an enhanced platform with apple inside their stores.

they've added levis into their stores you're seeing the brands go where the traffic is going and that's target. >> i wonder jhrrone, on that point, what retail earnings could look like today and the rest of the week when you have more stimulus checks potentially coming down the way and a retail sales print over 5% for the month of january. >> it's interesting because our data tells us that both kohl's and target could post positive prices today it's no doubt the department stores have been struggling even before the pandemic but kohl's is well positioned going into the future a lot of analysts have become significantly more bullish on the company, especially with its initiatives with sephora, the analysts do believe na that goig forward its positioning itself for future growth. when we look at the overall retail sector in general, ecommerce is here to stay. many retailers are being vocal, walmart and macy's telling us

they believe consumers' behavior toward omnichannel and ecommerce is permanent and consumers agree, in a survey, discovering that americans are tell us that even after covid, they intend to continue to shop online, that they are continuing to practice social distancing, working from home, order online, and even avoid large crowds, so as a result, we're expecting ecommerce to continue to grow into the first quarter to 43 percent for the beginning of 2021. >> on that note, walmart, stacey has been a big beneficiary of this trend that of course has been accelerated by the pandemic, and yesterday wall n walmart saying it's nabbed two goldman sachs, will it play off with the stock down 7% near to date. >> i think walmart has been the biggest beneficiary for obviously being able to stay open, and offer that incredible grocery proposition, which is half of their mix, and yes,

they're investing in the future of technology, and i would argue that target and walmart are moving more into trying to be technology companies it will pay off in the end for sure i would also say that, you know, some of the other trends we're seeing in retail is the buy now pay later concept. the likes of macy's is starting to embrace how the younger consumer wants to shop, and as a result, they're seeing that younger consumer that's spending more, that's loyal, so, you know, there's all sorts of different angles in retail for the old school retailers to try, and it's great that so many of the old school brands are perhaps saying, you know, okay, our old school credit cards, perhaps we move forward and embrace this younger type of payment that drives a new consumer. >> bottom line, you think macy's move was the right move. >> i think it's an incredibly smart move, absolutely. >> the stock didn't really react to that news about accepting

kalarna. >> great discussion on retail. thank for joining me today, and that does it for us on "worldwide exchange. i'll see you later on today. "squawk box" begins now. in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? delegating? oh, good one. move your xfinity services without breaking a sweat.

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good morning, stocks are pulling back after their best day in months. the dow coming off more than 600 point gain we'll show you what's moving in the premarket straight ahead. on capitol hill, senators elizabeth warren, bernie sanders, calling for a new billionaire tax that could cost jeff bezos an extra $5.4 billion per year, give or take senator warren will join us live. plus, earnings alert, target will bring you the numbers, and an exclusive interview with ceo

brian cornell. it's tuesday, march 2nd, 2021, and "squawk box" begins right now ♪ i'm on top of the world hey i'm on top of the world ♪ ♪ we've done this a while now playing my dues ♪ ♪ holding it in for a while ♪ >> good morning, everybody welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin, and we're going to start with the markets this morning joe mentioned yesterday's rally. it was a biggie. the dow and nasdaq posted its best trading day since november, and the s&p since june if you were watching this, it was something to see joe talked about the 600-plus point rally for the dow. the dow was actually the least of the movers in terms of a percentage term, for the s&p up 2.4%, and the nasdaq up by about 3% it was the energy and the financials that were helping power the markets higher also tech stocks getting back a good portion of their recent