it is 5:00 a.m. at cnbc and here is your top five at 5:00. isolated event or systemic market risk? breaking down what went wrong at one big hedge fund and asking whether or not it could happen again. unstuck in the suze. traffic flowing once again, as the "evergiven" limps away after six days of delay. hold the s.a.l.t. deductions new york business leaders calling on leaders to overturn

trump era laws why a singer is lawyering over and the random but most interesting thing you're going to hear today has to do with the vaccine rollout and some very good news from the cdc that got almost no attention elsewhere. it is tuesday, march 30th. and this is "worldwide exchange." well, good morning, good afternoon or good evening and welcome from wherever in the world you might be watching. i'm brian sullivan thank you very much for joining us on a busy "worldwide exchange." let's kick off your tuesday morning look at the markets and markets and stock futures are higher the dow is higher, anyway. up 40 points on the dow. nasdaq futures, they are lower so why don't we call that mixed. stocks coming off a mostly lower session on monday, with the dow the lone gainer, again the dow has been pretty hot lately and remains that way this

morning. and by the way, if you're counting at home, dow inking another record close the 17th of -- somebody says, how many record closes has the dow made this year you're going to say 17 and you're going to be right the nasdaq continue to struggle. the nasdaq dough off nearly 8% from its record all-time high. we donate see this rotation out of the so-called growth names, or maybe the work and stay-at-home names, zoom, peloton, docusign, they continue to come on harder times recently after surging last year for, you know, obvious reasons. and the money is coming into so-called value stocks big old boring names like jpmorgan, disney, bank of america, intel, and as we showed you on our rbi yesterday, even cisco continues to remain red hot. the names that don't get a lot of attention, because they're big and slow moving, they have been attracting money. look at that chart, growth versus value

also watching small caps, they have not showed a lot of value recently the russell 2000, losing nearly 3% yesterday it is down, still up year-to-date, but down from its high it's on a pretty important support level, as well technically. we are watching you, russell 2000 and the ten-year yield which has been a catalyst for all of this movement continues to tick higher a little bit this morning, the ten-year benchmark yield at 1.77% around the world, asia ending its day mostly higher around the world. we've talked about how hot japan has been, it continues to be so, making more gains overnight. not a lot, up 0.2%, but japan rising once again. and the european markets, they are just a couple of hours into their trading day and it is more green than red on the screen there. all right, right now, let's get to some of this morning's top stories, including one now very-famous ship that is no

longer stuck in the mud, but maybe with a little mud on its massive face bertha coombs is here now with that and more of your top stories. the "evergiven" limped away. >> yeah, that's pretty astounding before we get to the "evergiven," more details in what led to last week's massive stock fire s.e.a.l. in connection with the archigos capital management "the new york times" is reporting that nomura and credit suisse all discussed ways to limit the collapsing stock, but according to the report, those efforts went nowhere and paved the way for the chaotic selling that ensued. and in egypt, as brian mentioned, the suez canal is once again open for traffic after crews were able to finally free the massive "evergiven" container ship that got stuck

for six days salvage teams were finally able to re-float the nearly quarter-mile-long ship with the help of some high tides. it's since been moved to a wider part of the canal, where it is currently undergoing inspection. and u.s. transportation secretary pete buttigieg says the white house will not propose hiking gasoline taxes or a new vehicle miles traveled fee to pay for its proposed infrastructure spending plan president biden expected to outline how exactly he will pay for his $3 trillion to $4 trillion spending plan during an event tomorrow brian? >> well, i guess they floated it the outcry was pretty loud, realizing a lot of people at a lower income have really long commutes because they can't afford to live close to where they work. and they'll just put that one on the back burner. bertha coombs, we'll see you back in a few minutes. thank you very much. >> all right back now to your money and

your next guest says, while you may not be some giant hedge fund like archegos that bertha just talked about, you need to pay attention to one big thing with any company that you invest in that is leverage aka, debt. let's welcome in chad morganlander, portfolio manager at washington crossing advisers. chad, it's good to see you again. maybe the archegos saga is over, maybe it's not but so far, what should be the takeaway for our non-professional investor audience that's watching right now. what should we learn and flow what happened there? >> well, it's about leverage it's about making sure that you don't fly too close to the sun with your investment process there are going to be other funds similar to this experience that we saw this week, where there's going to be a blow-up. so what can you to control risk, as an individual investor or a portfolio manager? you should be buying the highest quality investments that are

consistently growing, consistently profitable, and don't have a lot of leverage or debt on their balance sheet. so, for example, look at companies that also have this incredible durability to them, operationally, so that if they go through a recession or a pandemic or even a depression, they will come out the other end and survive. >> yeah, and it's a good lesson. first off, they can always rely on pros like you, because you get paid to do the hard work to dig down into these balance sheets but if you're somebody at home that's just watching and kind of fill fiddling around with the market, it's pretty easy to see -- there's two sides to a balance sheet. you've got assets and liabilities. look at the liabilities. is that why -- for all the sexy stuff we talk about, chad, you like the maker of spam and didint moore beef stew?

>> yeah, a company like hormel, that is reinvesting back into their business, growing and as han organic growth rate of 3 to 5% and does not have a lot of debt on their balance sheet, in fact, they've got more cash on their balance sheet than they do debt so this is a durability balance sheet, durability company. also, look at a company like pepsi or, for example, coca-cola. those companies, as well their valuations also make sense. and that's the most important thing. in a market where you're at a very extended valuation, you can look at these type of companies and own them for three to five years and do quite well. >> yeah, it's amazing. think about that, maybe you've got $5,000 in credit card debt but $6,000 in cash sitting in a savings account, you know you can pay that off that's pretty amazing that hormel has more cash than debt a lot of talk about new priorities for this administration not getting political, chad, but

you obviously believe that defense spending is not going to get crushed, because i know you also like raytheon and general dynamics >> so we think that the aerospace industry is going to open up and do quite well over the next 18 to 24 months general dynamics as well as raytheon have been -- the valuations have been compressed. they are an industrial we think that overall, that also defense spending is going to be quite robust over the next 18 to 24 months. again, similar to hormel and pepsi, their balance sheets are very, very clean and also, they have a predictable revenue line we would be overweight this. we would look out 18 to 24 months we think there's also going to be an increase in regard to their dividend >> okay. so there's your investing guidelines from chad morganlander you can drink a coke or a pepsi while eating your beef stew and looking at pictures of fighter jets or gigantic warships. chad morganlander, some smart

balance sheet strategies there chad, a pleasure to always have you on have a great day >> thank you >> all right you're welcome but we are just getting warmed up. and when we come back, t-mobile scrapping plans to try to take over your living room, at least for now. i'll tell you what they did. and much more on archegos capital management "the new york times's" kate kelly is here with a scoop you've got to hear and later, buy me some peanuts and nfts, the plan apparently going down at the new york mets. why is it always the mets? dow futures up 43. 'rba aerhis. discovered the pd-l1 pathway. 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. saved my life. saved my life. what we do here at dana-faber,

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all right. welcome back why don't we take a look at some of this morning's big money movers just for you. three stories that you need to hear about story number one, t-mobile announcing it intends to scale back its tv plans. the carrier now saying it will wind down its bundle of cable channels as soon as next month it was simply unable to make the service profitable tv will look to form an alliance with youtube tv instead. story two. activision blizzard. it is naming a new cfo the move comes as the gaming company is in the middle of a lawsuit with netflix for allegedly poaching its former chief financial officer. activision blizzard sued netflix late last year, claiming the

exec was illegally recruited by netflix. and story three, apple supplier foxconn. it's posting a lower than expected profit for its fourth quarter. the 4% profit decline compared to a year ago still on high precision, as it is formally no phone. shares are actually slightly higher in asia or closed that way. all right. on deck, why nike is taking issue with the 666 pairs of shoes sold by one chart-topping rapper that ominous number is a clue. plus, the latest on the vaccine rollout. and some very good news from the cdc that's not getting a lot of attention elsewhere. that and your other top trending stories when "worldwide exchange" returns right after this short break dow futures up 50. nasdaq futures down 8. >> announcer: today's big number 1.74 million that's how many barrels of oil pass through the suez canal per

day last year, according to tanker tracking firm kepler. that's about 4.4% of all cderu transported by seaborne methods. dance on stage. spin class! i can't wait for my patients to see my smile again. to hug my students. to give my parents a proper send off. to go salsa dancing. no. i can't wait for you to meet my mom. play my piano for my friends. to give high fives to our patients. i think we are one step closer to being...better people. with every vaccine, cvs is working to bring you one step closer to a better tomorrow. ♪ ♪ we know it's going to take many forms of energy to meet the world's needs while creating a cleaner future for all. at chevron, we're lowering the carbon emissions intensity of our operations, investing in lower-carbon technologies, and exploring renewable fuels of the future.

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all right. welcome back it is 5: vaccine stands and the numbers

continue to be quite good. according to the cdc, 180 million doses have delivered states across the country. 145 million of those have been administered in all, about 95 million americans have gotten at least one dose of the vaccine and over 52 million are now fully vaccinated both of those nearly half the population over 65 that's why hospitalizations are down 70% from their highs from january. all of this as we just got our first real world medical data on pfizer and moderna's vaccines and how effective they are and that is very good news we'll have that later on coming up in your rbi we'll call that a tease. it's good news it's oddly not getting a lot of attention anywhere else but we have the story. let's get a check with headlines outside of business. phillip mena has more. good to see you, phillip

it's day two in the trial of former minneapolis police officer derek chauvin charged with murdering george floyd. during yesterday's opening statements, the prosecution and defense clashing over that death. they hammered that 9 minutes 21 seconds the time that chauvin kneeled on floyd's next. longtime confidant of jeffrey epstein ghislaine maxwell is now facing sex charges. prosecutors report that maxwell recruited a 14-year-old girl to engage in sex acts with epstein 2001 and 2004. this is the fourth underage girl to alleged to have been a victim she pleaded not guilty to the original charges and remains in jail while she awaits trial. finally, in iceland, a group of volleyball enthusiasts got

together for an impromptu game in vunfront a volcano. it wasn't good enough for them to admire it from afar no, they took to the stream for the thrill of the red hot magma. the thing this do. back to you. >> i guess the backy icelandic, always doing something around volcanos or hot springs. >> it will make for an excellent next season for the lava, you know, if you really, really want to get extreme with it i think that's what's next >> yeah. but i'm not the one that goes and gets the ball from a bad shot >> that's a good point, one, two, three -- you're it right? >> that's right. they had york playing in the background it's back to business after the break. as he round the corner on 5:20 spacex elon musk under fire over

some questionable hiring practices. we'll tell you why and if you have not already subscribed to our podcast, you need not worry download it on apple, spotify, check it out every day be sure to check out the at work summit, look at that, matthew mcconaughey, that's right. all right, all right, all right. the at work summit, here's a sneak peek >> it's not just about the physical safety of returning to the workplace. that's not the question. the question is who is coming band and what happened are you creating what takes back the person that has been gone for two years and their life has forever been changed

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♪ the fallout continues. investors nervous that the archegos scandal not over yet. leslie picker and "the new york times" kate kelly are here to tell you about the widespread ramifications of the risk taking more salt, please. deductions that is why some are turning up the heat on president biden to uncap the state and local deduction that's slam many blue state taxpayers we'll talk about sticker shot why some tesla customers got charged twice for their new cars that's not good. it's tuesday, march 30th and this is "worldwide exchange." ♪

welcome. or welcome back. good tuesday morning, everybody. or good tuesday evening if you're some place else some the world. thanks for joining us here on "worldwide exchange. get a quick check on your money right now. futures kind of like the markets lately they are mixed according to a recent continuation of the so-called trends the big cap value stocks are higher technology names lower dow futures up 57. nasdaq futures down almost exactly the same dow posting its 17th record close of the year on monday. while many tech and so-called stay-at-home stocks get kicked out. nasdaq off 8% from its record all-time high. and leading the declines, the name that led the market and boomed during lockdown names that we never even talked about a year ago, zoom, docusign, throw peloton in there as well. instead, money being sold there. and roll in the names like

disney, bank of america, intel and like we talked about in the rbi yesterday, cisco now to this morning's other top stories and big headlines, bertha coombs is back with those. bertha >> brian, finance and other business leaders in new york are pushing president biden and senate majority leader chuck schumer to bring back the full state and local tax deductions the solid s.a.l.t. deduction was capped at $10,000 by former president trump's 2017 tax law cnbc has learned that schumer who is up for re-election next year and advisers to the president have heard from business leaders across new york in recent weeks. schumer and fellow democratic new york senator kirsten gillibrand introduced a bill in january that would eliminate the s.a.l.t. cap saudi arabia is reportedly extending oil cuts by opec and its allies when it meets later this week. according to reuters, those cuts

would carry over into may and june the group had also hoped to ease the output amid rising crude productions. the fresh wave of lockdowns globally expected to fuel those extended cuts. and tesla is being accused of double-charging some customers for their new vehicles some of those customers tell cnbc the duplicate charges left them in financial distress which included facing overdraft fees and credit card bill charges due at the end of the month. the amounts taken from their accounts range from $37,000 to $71,000. tesla did not immediately reply to cnbc's request for comment on the matter i mean, it's a car very nice, brian, but you shouldn't be charged twice. >> well, you know, it's an easy way to raise money, i guess. just pay double for everything i buy, obviously, they're going to return the money >> that's a whole new twist to -- that's a twisted to now how much would you pay

>> yeah. exactly. maybe it's the nft version of the tesla, just pay 700,000 for a model. in this case, i assume the money will be coming back, bertha coombs thank you very much, bertha. from that and big money story that rocked markets the last couple sessions, the forced selling of hedge fund archegos capital management and the billions of dollars of stocks that have gone wrong, at least synthetic stock bets to get on what's happening here, leslie picker who has been all over the story leslie, what have we learned in the last 24 hours or so? >> good morning, brian we've learned a lot and there are still a lot of questions remain as you know, as many people audience know investing risk comes in variety of forms, combination of leverage, and concentration and liquidity. looking back, archegos management blew all three of

those out of the water with its risk appetite. the family level's leverage defied logic and able to amass positions with 8 to 1 leverage. and in some trades that ratio skyrocketed to 20 to 1 times the report cites people familiar with long leverage agreements. now, that type of leverage is practically unheard of and it means that even a small move downward in those positions could force significant pressure on archegos, and in this case, a once in a decade event as a source called. archegos also ran heavily concentrated reportedly with names like viacomcbs, discover, chinese companies among others across the six or so prime brokers he was working with, hwang was able to amass a huge portion of stock in many holdings in some cases, one-tenth of the

shares outstanding that made it so he was practically a liquid, unable to easily sell his stakes when the margin calls happened. and to the banks with seasoned assets and in terms of swaps with equities that were beneficially theirs, this resulted in massive trades practically unheard of in scale and size a spokeswoman for archegos telling c nbc that this is, quote, a challenging time for the family office of archegos capital management the departments and families are being discussed as mr. hwang determines the best path forward. in terms of the archegos struggle, brian, it's raising questions about transparency and the silo broker system a lot to unpack. something tells me we'll be talking about it for days to come >> very quickly, leslie, before we let you go, has anybody

gotten ahold of bill hwang what's he say? >> i've been trying. our colleague david was able to track down his spokeswoman last eye night, get a statement from her. but other than that we have no comment from the firm. >> except for challenging times, the kind of throw away comment there. a lot of people want to know more than that hopefully, they'll come out and be a little more visible leslie picker, thank you very much let's bring in "the new york times'" kate kelly, also a cnbc contributor out with her own take on the situation with a published piece last night leslie is still with us. as banks faced billions in losses and viacomcbs and stocks goh away kate, great to so you. it's amazing, like old times in old times, we'd be actually be in the office together saying hi and having cold tater tots. that aside, kate, i think the question is how does a firm

amass such big positions synthetically. and i'll give you an extra order of tater tots if you throw in contracts for difference and/or indifference for swaps in your answer. >> when i was at cnbc, they taught us not to overcomplicated things on the air. i'll say, the concept here was archegos wanted to take large positions. i guess because we haven't spoken to them, one on anonymity of a total swap. effectively, what would happen is, the prime brokers, the banks that led money to archegos would go out and buy shares of the stocks that archegos wanted to go long. you will find a lot of banks seemed to amass larger positions than they had going into the quarter in viacomcbs, you see a

lot of activity by nomura, by goldman sachs and others that was a tell of the stocks probably one or two out there building up positions through swaps. because unlikely that those banks would buy such large volume just for themselves for archegos, they would get essentially as leslie said the economic exposure to the stock through this arrangement they had made individually and bilaterally with each of these banks. but they would not have to own it and importantly, they would not have to disclose it. if you think back to the gamestop situation, at the beginning of that, right, what got melvin capital into trouble, i guess, is they had to report ownership of put options which effectively told the market were massively short these stocks normally, you would not have to report a short position with a few exceptions like in the uk. and that was a similar case here the market didn't exactly know who was doing this or why.

and when the move happened it was large and shocking >> it was. and, leslie, listen, kate won't do it, but i will. i'm going to say that our management won't like so if any of our bosses are listening, mute the volume. every quarter, we talk about these 13, we call it whale watching, we talk about the big funds and ftc filings and a lot of those positions might be fake positions or dummy positions to mask trades that are exactly the opposite i.e., you own some of the actual equity but they are synthetically short other positions through trs, it will return swaps or as i mentioned contracts for differences. which are swaps, ways to get synthetically. you don't own anything, you're betting on a move. you're paid up front by the way, those are illegal in

the united states but they're very profitable, or used to be in parts of europe and asia. but don't believe what you see on the filing, right, there may be a bigger bet going the other way? >> yeah. you know, it's not something that hedge funds are new to. they had to file 13fs for some point. they figured out when you disclose a certain size position, people catch on to it. they see what you're doing so they found creative ways to not have to disclose exactly their position to leave them to certain vulnerabilities as kate mentioned with regard to gamestop, for example. i do wonder if we look at the postmortem of archegos capital and some of the potential impacts from it. you know, will the fs.e.c. l

looking at rules, their disclosures are even less transparent. all of those things are important considerations as we kind of take a step back and look at what is happening over the last few days. >> yeah. and talking to people in the street about it, kate. i mean, one thing seems to be sure goldman sachs has won again. you know, goldman sachs is the one that looks like they have come out of this smiling while, of course, as the market shows you yesterday, nomura and japan, credit suisse, they were left not only holding the bag, but probably some of the credit risks as well. goldman getting out in front of the gate, right? as soon as the gate opened they will selling hard. and it reminds me of the movie margin call by 8:00 a.m., we got half the position. by 11:00, you're out and goldman looks like a winner. >> it's interesting i talked to sort of a veteran prime brokerage executive and a person

who ran market groups in the past the guy said to me, of course, he didn't want to be named with this kind of blue language but he said this whole situation is like a string of are you effing kidding me it's like what happened at credit sws it does seem, brian, that morgan stanley handled this immaterial losses on the goldman side and morgan stanley hasn't said anything about potential losses but sources tell us that the expectation is their be minimal if any >> or -- kate, can i flip it a little bit, too, just talking to people as well there are some out there that believe, we probably will never know, goldman sachs may have made money here? >> so, i reported on that yesterday. i think that's always a

possibility. i think they're still unwinding the trade a little bit so it remains to be seen exactly where they end up, but it's possible >> you know, leslie, here's the thing about goldman sachs and bill hwang, he got in trouble. had s.e.c. issues related to goldman stocks, nay, he was kind of banished by goldman sachs, right? oh, we're not doing business with you over the last 20 years, somebody let him back in. he's saved, i'm sure they brought him back in and now this, this was sort of a round trip for bill hwang and goldman sachs. >> yeah, it just goes to show you what the prospect of significant fees can do for your reputation but, no, you're right. it has been reported that, you know, he did not pass muster with goldman sachs' reputational committee. however, he did have agreements all over the street. we know at least six prime

brokers that he was dealing with and you bring up kind of who gets ahead here with regard to those prime brokers. the ft actually published an article overnight on the main ones he was dealing with actually met last week and had a conversation about how to orderly unwind the trades and make sure everything was done in an orderly fashion and then, you know, certain firms broke ranks. they sold earlier. of course, it's kind of like a prisoner's clem mall situation there, with regard to just the psychology of banning together as a team. >> yeah. >> versus kind of going rogue for your own benefit so really interesting behind-the-scenes stuff going on >> it's also a domino effect here, right? >> yeah. go ahead >> well, no, i'm sorry, interrupt. i was just going to say there's a domino effect that occurs as leslie noted some broke ranks.

you have thursday night into friday morning, two key, nomura and credit suisse, that triggered a prime brokerage with archegos and that's when the massive seizures and massive sales began. >> so many is on the swap market as well, kate. probably triggered by that viacomcbs secondary. i don't want to scare anybody, kate this is related to viacomcbs and with tesla i don't say that like it's on fire with cars when you look at the underbelly of derivatives, ask any trader on swaps and derivative deaths, so much is tied to tesla or

other big technology names i think the bigger story here is what's the biggest risk on bigger names? and how many derivatives and swaps and synthetic positions are placed on things we have no idea about >> right and of course, the reason that market participants like to use these complex products like swaps is to give them anonymity and with that comes the nimbleness to get in and out of position without moving stocks as much as you would if positioned public. that said, it's interesting you bring up viacomcbs not being exactly a reporting stock. i did some reporting on that yesterday because i wanted to understand what the fundamentals were one analyst i spoke to said it's interesting what we noted in the analyst community who follow the media stocks it's not so much the fall of that price of stock last week but the rise there were no fundamentals to support a price that

$100 there was this new equity and convertible bonds. and the management team eventually thought let's take advantage of this high price, let's raise capital for longer term plans and that was fine to do but it seemed like the market didn't like it they weren't able to raise, ended one 2.65 billion, not 3. and somewhere in there, the stock started this precipitous fall even before the asset seizures you saw the stock ticking down through the course of the week >> yeah, and pain always greater than gain. and that's why stocks tend to move down at twice the rate they end to move up when there's fear and there was fear kate kelly, leslie picker. hey, guys, next time we do it, let's do it over lukewarm coffee and cold tater tots can we do that >> tater tots. >> i don't know tater tots but i'll take the coffee >> come on leslie and kate kelly, great

reporting. look forward to seeing you in person check out kate's stuff on "the new york times" website as well as leslie's awesome reporting. coming up, the growing controversy over the sneakers by the grammy award winning rapper lil nas x now has nike stepping up and taking legal action but first a quick hit on what else is happening right now a judge says spacex should be forced to comply with a department of justice subpoena as part of a probe whether the company illegal discriminated against hiring practices and the judge's argument that the subpoena constituted a, quote, government overreach also, samsung says that semiconductor production at its texas plant is now returning to normal the facility temporarily halted production last month after that severe storm caused power outages. check this out, volvo has announced it will give all employees 24 weeks, six months of paid parental leave the automaker ceo said it will

help the company hire and retain talent among its push to become an all-electric leader by 2030 we're back after this. 'm still 3. that's why i take oste bi-flex to keep me moving the way i was made to, it nourishes and strengthens my joints for the long term. osteo bi-flex, plus vitamin d for immune support.

well, devil's lawsuit. nft stepping up to bat and some good news for comiccon lovers. bertha coombs back with today's

trending stories berth that what's trending? >> well, nike filing a trade market infringement against the company selling lil nas x satan shoes. the company miss chief confirmed on sunday that the modified nikes being sold in collaboration with the rapper did indeed contain drops of human blood. nike in a statement also reiterating that it has nothing it do with the rollout of the shoes which sold out shortly after going on sale. new york mets continuing their foray into the nft world the mets' first baseman pete alonzo is launching an nft block party. it will be auctioned off and dedicated to a charity supporting minor eaguer. and comic-con is turning the page on the pandemic announcing that it will hold a

special convention in april. that will be the first since the onset of covid-19 just think, all of those folks and the bear costumes getting ready. >> yeah. i mean, many of them, by the way -- first off, that's november, hopefully, this will be long gone, in masks already i got invited to my first in-person conference next month. i'm not sure i'll go >> really? >> yeah, i don't know if i'll be able to go i got invited. a couple hundred people, it's not huge but i'd like to go >> wow, that's pretty cool pretty cool. it's one of those things where it just seems like it's around the corner we're getting there. >> yeah. >> i'm just worried -- >> right it's like you're going to have an in-person conference in a few months you have to start now. you're kind of rolling the dice, but, hey, someone's got to be first. bertha, thank you. that was the world of comic --

where is contessa brewer, i think she's got say conference she's going to maybe next weekend. inquiring minds want to know on deck, your morning rbi, and very good news from the cdc that is not getting much attention elsewhere. we've got it, though you're going to want to hear it. stick around everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we.

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♪ welcome back let's get back now to the markets dow futures up about 50 points in that nasdaq down about the same the next guest says we continue to face a leadership rotation but she's warning don't put all of your so-called value eggs into a value basket. an appropriate ant neck dote ahead of easter. erin gibbs is ceo of gibbs

wealth erin i would expect nothing less than easter jokes at this 5:50 a.m. hour. what do you mean by that you don't want to throw all of your money at some of that beat-up cyclical >> i think actually it's some of the cyclicals that have gotten a bit overvalued i think we ought to be choosey where we should be putting our money. some of the valued classic type industries much like energies and some real estate really have become a bit overbought. they're highly volatile. and so, i think investors can be better off by looking at really drilling down into both fundamentals the potential cyclical growth that we'll see over the next two to three years and still keeping in mind valuations and not buying too expensively. >> you know, we just talked about, of course, the archegos stuff. and morgan stanley's name was bandied around as one of the

players in that. that's not swaying you, you still think that morgan stanley is maybe a deep-value stock. why? >> one, financials are one of my favorite sectors within the value basket they're in general, the sector is trading at about a thrust% discount in valuation. which is unusual, financials typically trade at a discount towards the bottom market but it's more like a 20% discount in a low-rate environment so there's still room just purely on valuation appreciation basis. and i actually think that morgan stanley, particularly was a little harder hit yesterday, is -- presents a real buying opportunity. i think they have -- being diversified financials are my favorites because they're able to take advantage of lots of ways to make more money with higher yields. higher yield curves. as well as being one of the

earlier traders -- or earlier companies that got out of the block trades on monday i think they were overhit yesterday and that makes them more attractive today. >> the market has spoken and the market has not taken the stock down by the way, i think the market would know what's going on with morgan stanley since they're a part of the market erin, what else, as you dig into cyclicality and borg balance sheets what looks good to you >> what i real like are industrials, taking soon of long-term cyclical growth, particularly with some of these transportation pack avenues if they go through, even if they're much smaller or come in different portions i think those are really poised. as we reopen the company, industrials are also some of the area where is we can see higher capital expends itures and being

able to really take advantage. and so while their valuations have become a little higher than the bottom market, there's by no means overbought and i think those are some other companies that, particularly in construction, that are also a really good bet from long-term growth >> all right good stuff there good bets for long-term growth we love to hear those words together erin gibbs, love to have you on the program. talk to you soon >> thank you >> you're welcome. time now for your morning rbi. today, we're going to end the show with some good news in the fight against covid. now, it did not get a lot of attention for whatever reason. but yesterday, the cdc came out with a very positive report on vaccines i posted to my social media. you can read it there, it's boring and a bit wordy so we're going to summarize it for you here because we're finally getting data on the vaccines which, remember, have only been

around for four months looking at where health care workers likely got vaccinated first like back in december. the cdc found nearly zero cases of covid that's with either one or two shots. here are the actual numbers, among 3950 mostly front line health care workers who deal with covid all the time and had no previous covid infection, 14 days after both doses 0.04 infections per 1,000 person days registered and 14 days after just one dose of either pfizer or moderna it wasn't much higher and just 0.19 cases per 1,000-person days. so, that's not exactly zero. but you got to be clear, that's pretty darn close to zero, over that length of time. and remember, dr. fauci himself has said and he wrote in a paper, by the way in the new

england journal of medicine in february, that these vaccines, pfizer and moderna, are likely to cut serious outcomes in some of the variants even with slightly lower efficacy. while there's a big reason to be concerned. cases are popping in michigan, new jersey and other states, there's also a lot of reason for hope and optimism. the first real world study, not a test real world people, actually humans that got it and positive data from the cdc. by the way, shoutout and virtual high-five to all of the scientists and medical personnel making this happen random and hopefully interesting and important data on the vaccines as well that does it for us on "worldwide exchange. tried that little good news. hope you have a gooday d wherever you might be. we'll see you tomorrow "squawk box" is next

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♪ good morning dow futures pointing slightly high per nasdaq futures slightly lower. can you say ten-year over 175 again yields moving. you. we'll show you what else is moving in early trading. new details on the archegos margin calls that rippled through the markets. we'll run you through a very bad week for some very big bets. and the moves that banks made to limit their losses plus, we have an exclusive interview with a mysterious buyer known as metakovan who paid $69 million for that, digital artwork. it's tuesday, march 30th, 2021 "squawk box" begins right now. ♪ walk with me now go with me now ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with