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tv   Worldwide Exchange  CNBC  April 15, 2021 5:00am-6:00am EDT

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it's 5:00 a.m. at cnbc here is the top five at 5:00 coinbase looking to keep the party going. after the highly anticipated debut. and the j&j vaccine taking off. the market and regulators dig into the blood clot issue. is everybody getting back on a plane? set to give us their outlook
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with the airline business back in focus. speaking of comebacks, is it back to the stores or are with we online forever? d data showing one group is going back out in person and one going big. we will tell you who that is on this thursday, april 15th. this is "worldwide exchange. ♪ ♪ good morning good afternoon good evening welcome from wherever in the world you may be watching. i'm brian sullivan thank you very much for joining us on the day that used to be known as tax filing deadline day. no longer. not this year. pushed off to may 17th here is how your money is setting up futures in the green dow futures up 130 maybe we'll call this the r & r
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market no, not rest and relaxation. we wish. rotation and reflation battle of wills and dollars and value names that ben fefit from full economic reopen the fa the fang plus index is up slightly that continues april's historically bullish trend according to data, before this year, s&p 500 had been up 16 of the past 20 aprils with average gain of 2.5% goldman sachs helping the dow and overall markets yesterday and could continue today bank of america and citigroup and charles schwab reporting and
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a number of big names reporting tomorrow a mixed picture over seaove overnight. let's look at the early trade in europe not a huge growth trend. the major index is up ab about .30% let's dive into the markets now and back to the hotly anticipated market debut for coinbase be bertha is here with that and other news as coinbase is rolling on >> reporter: the largest exchange by market cap coinbase poised to pick up where they left off after the spectacular debut yesterday. shares are higher in the pre-market the stock closing at $328. up 11% in the pre-market it opened at $381.
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soared to $429 that is still well above the reference price of $250. meantime, the cdc panel decided to postpone the decision on johnson & johnson's covid vaccine as it reviews the blood clotting disorder. the panel voted to reconvene in one week when it will decide what it will recommend to the cdc on the vaccine that postponement means the pause on the j&j vaccine will remain in effect the company said it values the consideration of the advisory committee and will continue to work with global health authorities. adding safety is the number one priority a coronavirus sub committee will hear from three top baiden administration about the pause.
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and taiwan semiconductor is changing the outlook in the latest earnings briefing today the world's biggest chipmaker seeing first quarter profits just 19% it adds the chip shortage will last into next year. brian. >> bertha coombs, thank you very much let's get back to the market the s&p 500 up nearly 10% for the year not bad. nearly 60% of s&p stocks are trading within 5% of the new or all-time high. of course, the overall momentum is good, but spring may be in the air, but there could be some near-term ellallergies. let's bring in craig johnston at piper, sandler
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craig, you have been nailing this market the last few years tell us, has it been good? is it too good is the market ripe for a pull back >> thanks, brian it is good to get up early and come on the show you started out talking about the reflation and rotation you have to add another r. we are continuing to see movement to the cyclical sector and rotation that is happening toward the energy and basic material type names. also, what you are seeing with the financials to your point, brian, the big picture of the market, this is the normarket that is performin very well and with highs at the time while there is fear and the aaii numbers at the 5% all-time highs
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here, you are bringing in good news earnings numbers in the next couple weeks are important to where this market is going to go from here. we have a 42.25. maybe a little more to go after that a lot of good news is baked in, brian. >> already baked in. maybe tapering off a bit by the way, craig, feel free to use the r & r market i want to use that credit in the newsletter goldman sachs yesterday proved one thing. no matter what happens, goldman wins they jumped back with the stimulus checks and everything else do you think schwab will be a big winwinner? >> i think so. the chart looks constructive think about it from the macro back drop.
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you have a lot of money market funds and they earn nice returns on the money market funds as rates start to come back and move higher. also would note more retail trading is happening benefits schwab too. we have one in other model and continue to people buying. >> is that a similar story with the chicago merchantile exchange >> absolutely. when you back and look at what is happening with the commodities at this time lumber and copper prices more trading happening and a lot of commodities are doing well. this is another one we want to buy and it will benefit from our perspective from a pickup and overall economy and activity and with some of the shortages you are seeing for raw materials at this point in time in
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corporations looking to source those. the cme can pick up from the volume absolutely >> all right i don't want to steal the thunder from stacy i know what she will say she will talk about a store based in minneapolis with a red and white logo that looks a lot like a target. your hometown store. she likes it fundamentally you like it technically. >> stars and moon align on that one, brian a lot of positive changes. i'll leave those to her. i'll take the technical. it looks like this is the stock on any short-term pull back issue buying because they are capitalizing on the internet trends that have done well, but any sort of reopening trends and physical store presence. they are doing well. >> very, very quickly here
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i know you and your son have crypto you said you were mining bitcoin. >> the trends emerging in the crypto space at light speed if you look at the charts, light coin and a bunch of the other coins are literally breaking out of huge multiyear bases. i think coinbase public yesterday. i don't want to make the same mistake. i didn't buy google or tesla when it first came can i can go through a handful of others it seems crazy cright now, but i is something you want to buy and tuck away. light coin is one of the ones that is not back to highs while bitcoin exploded to the up side.
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>> you have done very, well. great names there. great stuff. a warning for the macro market. craig johnson, always a pleasure to see you have a great day thank you very much. >> thank you you're welcome we are just getting started on this thursday. when we come back, your morning big money movers, including shares of dell taking off. we and just mentioned stacy. she is here on why brick and mortar is not dead yet and one group is spending money in the stores. and one wall street firm busting out the credit card to fight off worker fatigue the eye-opening perk tt hayou may not believe or wish your company would provide. we'll tell you about it coming up stick around
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welcome back let's hit three big money stocks for you. ready? stock one. dell plans to spin off the 81% stake in vmware is valued at $52 million. it will pay cash dividends including $9 billion for dell. stock two. thermo fisher for $15 billion. the wall street journal says the
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deal could be final this week. who is ppd they run drug trials for fpharma comp companies. and american eagle popping above $1 billion retailer says strong demand is helping sales at full price. up 5.5%. that is the perfect segue. some think we shop online forever. we might for certain things. don't count out brick and mortar yet. check this out could have been an rbi according to data, foot traffic is returning to brick and mortar stores after a year of online shopping in p parts of the country. look at that you go, pittsburgh it is the steel city seeing the biggest jump in in-person
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shopping 293% gain. for a lot of people, this is going back to the stores detroit second california and minneapolis and san diego. really pittsburgh, michigan, minneapolis, a couple of towns in california seeing the biggest gain if you are coming off a no-base like california, you will have a big jump you go, pittsburgh let's talk more about why this is happening and what group is out there doing the shopping joining us now is retail advisers president stacy whinless the kids are all right they're not afraid and they're out shopping >> that's exactly right, brian the teenager is happy to reach into the wallet and they feel invincible you have seen them come back to the stores if you rewind to last year, who came back first? it was the teen.
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abercrombie had 80% return to stores and department stores had 50%. that's the demographic that is coming out and you saw american eagle results increase guidance. urban outfitters and by the way, this growth that they are talking about is not versus last year it is versus 2019. that shows you the spending power and how strong that particular customer is coming back >> that was against -- i feel more silly talking about california then. that data and i'm happy to be wrong, stacy that implies it is more bullish in a certain way maybe that is the bust-out trade. get out of the house get away from mom and dad. hit the mall once again. >> that's exactly what is happening. you know, it is great that so many retailers are not giving us numbers over last year who cares?
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nothing was happening. they are giving us 2019 to see an actual picture of the future. we heard from bed, bath & beyond they were talking about a normal mix between digital and physical the customer clearly with stimulus checks and jabs in arms, they are coming back mall traffic is down, but it is get are better day by day. the brands are strong and markets are coming back. >> american eagle. you know, we haven't talked about them for years kind of like the sea gull of retail in a way. now they are the majestic bird flying again who is american eagle and why are they doing so well >> american eagle is the perfect trade on the teen comensumer they are lounge. they have taken shares from victoria's secret.
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this is a comfort wear and the other is denim and fashion which is now coming back levi's is commenting they are seeing people going out and putting poonants an onon again american eagle has both. >> based on the weight gain trends we showed a couple of weeks ago, you are right stacy, on a more serious note, i know you were in new york a couple of weeks ago. it was great to see you like actual adults. we talked about fifth avenue and madison avenue a lot of stores lose money they want the physical presence. i'm sorry to say this, new york city is grim if you are out, you know what i'm talking about.
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it's a ghost town. are those stores coming back or is madison avenue and fifth avenue, are they in trouble? >> i think they are. you walk around midtown and the fla flagships. there is nobody there. we don't expect tourism to come back in a meaningful way until 2022 unfortunately, yes, those tourist destinations will be under pressure the rents have not been decreased enough do we need all of the museum stores levi's pointed out their stores are very tourist and city destination. they are talking about wholesale out performing everybody walking away and wholesale is your new friend >> maybe
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it was depressing, i have to say, walking around new york city >> i agree >> those stores aren't coming back we are watching american eagle soar stacy, always a pleasure thanks for coming on see you soon all right. on deck. more on amazon speaking of online this time it has to do with the continued perks for diversity within the company. dow futures are up 130. bitcoin is up 62.7 we're back after this. no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure.
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welcome back time for the daily vaccination update bringing you the daily dose of good news and optimism you need and deserve because sometimes the headlines don't do that. according to the cdc, about 251 million doses of the vaccine delivered. 124 million americans received at least one dose. 76 million have beenfully vaccinated nearly half received one dose. hospitalizations have come crashing down from the january highs. with the attention on the j&j news, here is what it will do to trends a lot of concern morgan stanley says don't worry. their star analyst matthew
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harris writing last night, our updated data suggests the u.s. can vaccinate all of the population by mid summer and increased confidence in the rate and supply to meet a mid summer target remains within the potential despite the deisruptio of the j&j vaccine pfizer and moderna have enough to pick up the slack it's going to be okay. still ahead, delta airlines earning on deck. we breakdown what to watch with the results. whether airline stocks will continue to soar and our return to normal. reminder, if you are taking a flight and you need something to listen to, subscribe to our podcast. check us out on apple, spotify, other podcasting apps. there you go dow futures up 42.
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before we go, keep it on cnbc all day for a number of high profile interviews here is a preview. we're back after this. i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow.
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we do this, together. bounce forward, with comcast business. good morning it is a good morning futures are surging as more and more stocks hit all-time highs as trillions in cash sits around looking for a home the debut everybody is
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talking about. coinbase it is powering higher. crypto gaining across the board. are you in need of a vacation wait until you hear what one company is doing for its workers. think of a beach umbrella drink no charge to you how is that for a perk it is thursday, april 15th this is "worldwide exchange. ♪ holiday road ♪ ♪ holiday road ♪ welcome. welcome back good thursday morning. 5:30 here on the east coast. hope you are having a great start. grab the coffee. hit the treadmill. let's do this. let's check thursday money and markets. looking good always nice to see more green on the screen than red. why not?
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that wealth effect kicking in. we're seeing more and more highs among the cyclical we called it earlier the r & r trade. we will coin that. not rest and relaxation. rotation and reflati on outside of stocks. bitcoin, light coin. a number of other names. they have been moving higher look at dogecoin a dime for the first time yesterday or a day and a half ago. dogecoin started as a joke literally began as a joke. it is now at 13 cents which doesn't sound like a lot, but well under a penny not that long you light coin as well. that is getting more and more attention. by the way, what else is
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coinbase public debut yesterday was choppy retailers and institutions interested coinbase this morning is doing well in the pre-market we will see that price all day on cnbc. we have to talk about something more basic that is lumber wood we have been talking about lumber prices now for six-to-nine months on the show we have done it as an rbi. lumber is $600 wow. lumber right now is $1,217 in the futures market not only is that a record high, but a record record. it has never been anywhere close to this high price of lumber is 39% jump so far this year. demand for homes forget about covid and everybody moving demographics are destiny we have a lot of millennials riding that family creation age.
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they will need homes probably not do it in new york city price of wood absolutely soaring. let's get to the other top stories outside of trees. bertha coombs is back. we could do a whole segment. i've never seen a poem so beautiful as a tree. that was joyce kilmer oates? >> reporter: oh, boy i need to search the database. there are plenty of millennial families in new york they have not all moved away meantime, president biden plans to meet with the prime minister of japan in washington, d.c. tomorrow in what will be the first in-person summit with a foreign leader since his inauguration political analysts take china's influence in the region and around the world will be the number one on the agenda as the white house seeks to rebuild the
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u.s. alliances around the world. amazon with diversity and inclusion goals for 2021 the ecommerce giant will double the number of black directors in the united states and increase the hiring of black corporate employees by 30% additionally, amazon will increase the number of female principles and directors and vice presidents and distinguished engineers by more than 30% the justice department is reportedly stepping up the a anti-trust probe of the americans partner with jetblue the regulator is growing concerned the deal could lead to anti-competitive coordination and inflate air fare at key traffic hubs in new york and boston this could mark an early signal
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of the biden administration interest in anti-trust enforcement. people always look for those transitions as you get a new administration, brian, how they handle big deals >> and this airline fight going on back to southwest trying to fly in the new york area from dallas that has been going for decades. it always involves the state of texas. bertha coombs, thank you speaking of airlines delta airlines is the first to report the quarterly numbers today after the year of lockdowns and massive drop in passenger revenue. delta airlines shares double in the past year. up 97.7% a huge gain. it is under performing most of the other airline stocks in fact, the airline spider is up 123%. allegiant has come back.
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and a new study from the cdc suggests that keeping the middle seat vacant on planes can lead to a 57% reduction of passengers exposed to covid although i don't know how many cases have been traced to airlines. nearly every airline now allows middle seats to be filled. delta airlines' policy expires in june. i have flown a number of times in the last nine months. joining us with the preview of delta airlines results is sheila, the aerospace and depends analyst at jefferys. good to see you back here. i like to look at the tsa numbers. i want to see the don't fly. it's not safe. 30 days in a row now we have seen more than 1 million people get on a plane. most days, 1.5 million to 1.8
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million. still down from last year. let's be clear domestically, there is a lot of people getting on a plane right now. >> that's correct, brian what we are seeing globally. international travel is where we see it down 80%. it is interesting to see what delta airlines says today regarding what they are seeing on traffic america came out saying they expect international traffic to be 80% back to 2019 levels by the summertime we think is quite an aggressive statement. >> the problem is, as much as we all may fly from new york to miami or to texas where people are living, pretty normal lives. what we are not doing is going to tokyo we are not going to paris. how much of the super profitable international routes is the
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issue? i'm surprised, sheila, the stocks have doubled. i get the bankruptcy risk is gone for a lot of the companies. nobody is talking about international travel >> the preview i'm looking for is one, have they been able to maintain it? delta airlines is the only one to maintain it the premium carrier blocking the middle seat. what are they seeing on international bookings we are not seeing it keep in mind american is 45% exposed. delta is lower than that with the exposure those are two data points we are looking to see what delta is seeing pricing and international. >> okay. pricing and international. pricing.
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let's talk about p tthat, sheila i made a comment in december last year. if you are going to travel, book early. we have seen that a couple of weeks ago. i'm looking around the christmas holidays got sticker shock. is it going to be a case with fewer planes in the sky because they are nervous to put a lot of planes back on to the seats to hot destinations, they will have pricing power. how does that balance out? >> we're going to see how it plays out. not necessarily the case 30% of the fleet is still parked that number is under 10% if the market comes back, do the airlines act rationally? american, for example, flying wide bodies and 777s down to
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miami and puerto rico. will they flood the markets and pricing crash? delta has been a rational carrier. they have good corporate exposure based in the u.s. and market share in atlanta. that is another data point >> sheila, any airline stock you love right now >> we love love. that's easy. we like love for a few reasons domestic is 95%. the airline exposure to corporate is on the edge united might see trouble and a lag in the market coming back. and third, cap is cleaned up one they have a $5 billion cap number out there and once they get through that, it's cash
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return for shareholders. >> you think that was an accident the love love? that was not an accident. >> no. you have been on point this morning. >> it's amazing with no sleep. i'm showing your love love some love southwest airline. sheila, always a pleasure. thank you. >> thanks. you're welcome speaking of ed bastian will be on at 9:00 a.m probably talk about georgia and the voting thing as well lots to talk about with the ceo of delta airlines. ed bastian talking about voting rights for all. coming up, why the next guest says coinbase may not actually be the netflix of crypto, but maybe the blockbuster video of bitcoin michael casey is here. we're back in a moment
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create personalized investment strategies to help you get back to your future. edward jones. welcome back we have an earning alert on bank of america i want to couch this and say this is unusual. the bank of america numbers were not due to come out for not quite another hour 6:45 a.m. eastern time they appear to have been leaked early or put out by the company
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early. the numbers have been put up on other networks they are online and shared wildly by real companies bangk of america's numbers are out early. let me read them numbers well ahead of expectations we are seeing about 86 cents from the numbers which is 66 is what was expected. 86 versus 66 a blowout on the epf side. these were put up on other networks and circulated online by real companies. we assume these numbers are accurate revenue $22.8 billion. that is $100 million than expected revenue better than expected trading revenue blowout. according to reports online, 5.68 billion 4.37 was the estimate of the
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averages estimate circulated bank of america members appear to have dropped early. 20 cents beat. a beat on revenue by $100 million. a beat on trading revenue by $70 million. a bit of a mystery why they came out early. those are the numbers that are widely circulated and stock is reacting in the pre-market no doubt, more on the actual numbers and maybe why they appear to have been leaked or dropped early. maybe following in goldman's footsteps with the blowout numbers. all of the numbers are well above estimates. we'll dig into that. let's dig into this. coinbase up in the pre-market after the direct listing yesterday and public equity market debut the stock surging past the reference price. up $250 a share to $429 in less
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than ten minutes stock finally ended the day below $330 soared and came back to earth and well above the so-called reference price. coinbase is now the biggest publicly traded exchange, i believe. bigger than waste management and twitter and kraft heinz. joining us now is michael casey. michael, good morning. good to see you. what do you make of the wild debut? what are people talking about over coinbase on the all important day two? >> thanks for having me. the wild debut is not that unusual for something that is, you know, unpredictable. people are trying to find the price. it reflects the fact that wall street will have to struggle to figure out what this thing is. you referred to it as an exchange the crypto world calls it an
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exchange it is nothing like the extraex traditional stock when it goes to pricing it is fair to say there is not a great deal of broad knowledge of crypto it is a different way of thinking about the world you have investors who struggle to figure out how to value this thing and that will bring volatility not just yesterday, but a volatile price for some time it is an inherently cyclical stock or tied to alternative asset which bitcoin is as well a lot of things to move this round. >> what are people watching, michael, going forward the issue is if crypto prices crash or come down, do we expect trading volume and interest to dry up can it survive in a bear or a b
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bull not survive, but thrive. >> pretty safe in terms of the cash cushion for survival. coinbase is used to this as is every other exchange in the space. revenues are very much tied or at least the performance is tied to where the price of bitcoin or other coins are. they came in as well that is a factor i think the biggest thing to watch is what happens to competition in the space not to say as well that is an immediate threat you know, you mentioned during break that it may be a blockbuster. we don't know where it stands. the real competitive challenge, i argue, for coinbase is decentralizing the exchange. no need to have a central body custodian. this is a thriving new area.
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coinbase is aware of this. can they meet that challenge the general public loves the convenience of the central custodial approach that coinbase is taking. we are early days in the marketplac marketplace. if others come in and compete, the growing pie of a global marketplace for crypto is inevitably going to bring in impressive growth for coinbase and competitors. the big question is a few years down the road with the technology evolved into something else, can coinbase keep up? >> that will be the question we will watch the stock. it is up in the pre-market of course, a lot of the lesser knowns cryptos, michael, is getting attention. not just dogecoin. michael casey of coindesk.
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thank you. >> thanks for having me. on deck, stocks continue to power higher april showers? make it rain in may. either way, dow futures are up 125 points federated hermes will layout the big tlhreat to the market that i looming t the.ouer things are good, but there is something you need to watch. we'll tell you what that is coming up.
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i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow.
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it is time for the thursday rbi. this one may make you a bit jealous or not apparently one wall street firm is hearing the cry of burned out workers. they are offering them a perk. not many firms would do or have the money to do.
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the report out from bloomberg and others that hulahan is giving workers an all expense paid trip to wherever they want. this is not all pile into a plane and go to the cancun re resort a menu of trips the staff can take beach, ski, whatever you want. you can do bankers work legendary hours this firm says we want to beat burnout by sending you on an all expenses ss paid trip. if you want to know how much bankers may work, here are other perks they are offering. houlihan lokey says it will not allow anyone to work past midnight approved by the head of the team thanks me thinks that some team heads
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will approve that. either way, a free paid trip to wherever you want to go is a start. i ask you, folks, is that a trade you would take those kinds of hours for a free luxe vacation and a big paycheck, of course. free trips random, but interesting. we will see if any other company follows. houlihan lokey's lead. markets gather up for another big day of earnings. the senior portfolio manager and head of the value income team at federated hermes linda, pleasure to have you back on we had weirdness bank of america's earnings leaked early they flashed on the screen and they are on the web. if they are accurate and no reason to believe they are not they are blowout goldman destroyed their numbers
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on every level yesterday in the market rewarded it looks like bank of america may have done the same you are a big believer >> absolutely. i had a couple of minutes just to really cursory glance the bank of america earnings morgan was better which was indicated. jpmorgan chase has had credit card issues that took off that net forecast that is positive more importantly, they just announced a $25 billion buyback program. that is going to be very big for the stock today. bank of america is one of our top picks at federated we are a big believer in the company and the strategy the company has. we will have to look at expenses and loan reserves and releases and what the loan expectations are for next year and second half of 2021as well. the conference call will be very
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important. >> by the way, linda, that release is confirmed as well somebody put it on the facts too early. the numbers are confirmed. your buyback point is a big one. i know you like the value names and cyclical names buybacks could be huge in the next couple months and quarters. >> absolutely. these companies are flush with cash they have strong balance sheets. you know, the consumer is also buying they have a strong balance sheet. demand is strong inventory is low we do picture the companies to have very strong earnings and cash flows buybacks are a big part of the market especially if we see tax increases on dividends and capital gains. >> tax increases, you may have buyback come in. more money li linda, pleasure to have you on
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have a great day blowout numbers dropping early for boa. jim cramer, thank you. we talked about american eagle soaring. he has the advice on "mad money" tonight. who is the retailer? tune in. thanks for watching. we're ckba tomorrow. i'll see you then. "squawk box" and the gang pick it up next have a great day dow futures up with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you.
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good morning stock futures pointing to a higher open. we hear from bank of america and citigroup the day after goldman and jpmorgan chase reported record profits. the cdc panel on the j&j
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pause. and coinbase making public debut on the nasdaq yesterday. surged above the reference price. came back and had an $85 market value. big swing in anything associated with it. micro strategy or square or tesla. it's thursday, april 15th, 2021. "squawk box" begins right now. ♪ ♪ good morning welcome to "squawk box" here on cnbc still with the heebie jeebies. the ides of april. otherwise known as

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