tv Worldwide Exchange CNBC April 20, 2021 5:00am-6:00am EDT
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dealdash.com, the fair and honest bidding site. an ipad was sold for less than $24; a playstation for less than $16; and a 4k television for less than $2. go to dealdash.com right now and see how much you can save. remember, shipping is always free. it's 5:00 a.m. at cnbc headquarters has the market turned an important new corner futures are mixed. what one guest says needs to happen. and elon musk weighs in after the fiery crash that left two dead. covid all but over by july 4th? one analyst says it could be. and what's up tim cook's
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sleeve apple prepares for the first product unveil of the year what's good enough for oprah must be good enough for wall street and you get oat milk and you get oat milk and you get a big-time ipo. this is "worldwide exchange" here on cnbc ♪ >> if you don't like that tune, there's nothing i can do on this tuesday. good morning, good afternoon, good evening from wherever in the world you are watching i'm brian sullivan it is looking like a decent morning. futures were higher across the board. mixed right now. dow down 36. the nasdaq is higher all this, of course, coming and let's not get too short sighted.
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a booming start to april even still. the last few sessions we have taken a pause. the dow down .30% on monday. nasdaq down 1% we are higher on the month one index i would watch more than the others right now are the small caps after a scorching start to the year, they have come to show weakness russell 2000 down 1.5% on monday down over the past month the russell may be more important to watch it is focused on the domestic american economy and inflation trade. two things we're focused on. one thing we are watching is bonds and yields if they move higher, this could start to impact stocks negatively we're at 1.62. let's get a check of the major
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markets. nikkei maybe had been the single hottest average this year. it also cooled off a bit overnight. down 2%. hong kong up mildly. european trading is following our futures market here as well. not a lot of clear direction in the european markets all right. let's move on now and kickoff the show with the executive recap. the global headlines we are hitting right now. china's xi jinping challenging the united states and its allies the thinly veiled warning overnight. speaking at the bao forum in asia and without naming america specifically, quote, one or a few countries should not impose their rules on others around the world. referring to the efforts to reduce dependence on supply chains, xi said an effort to
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build barriers and economic principles would harm others without benefitting oneself. also happening tobacco stocks hit hard. it is on a report that the biden administration is considering a cap on nicotine levels in ciga cigarettes according to the wall street journal, the white house is trying to figure out if it should reduce nicotine levels as a ban or separate policy any action that the fda takes must be based on science and evidence it must consider the real-world consequences on oincluding the growth of the market shares of altria and philip more
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ice i is down this morning and get ready for the earnings report. netflix numbers out after the close. the company is projected to grow 24% and earnings 89% those numbers are secondary to the number of subscribers. ainnalysts forecasting down fro 16 million from a year ago the pandemic is due to that jump netflix shares have done okay. up 3%. not what they were they are not down like many other stay at home stocks. back to the markets and your money. our next guest says buck ple up. the next story may tell a key indication, but get ready. bill stone is joining us now bill, for the last year,
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rightfully so, it has been about covid, lockdowns, economy, government programs. whatever this is looking like it is coming to an end what are you focusing on with the markets for the next few months and quarters and maybe a year plus. >> i think shorter term, as you mentioned, we may be getting a little bit -- it is easy to say a bit frothy we took a look at the post-bear markets after world war ii what you saw not unsurprisingly in the one year after, extremely strong market. we were up 75% essentially we switched to the second year in the bear market it is still a positive market, except not as good you are probably averaging up 12%. as you know, we are up around
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10% this year. then the other interesting thing which is more important is you tend to see more volatility. the intrayear declines are higher in that year. that's why i think you are right on and saying it is probably wise to buckle up a bit. >> i feel like we're searching for a main focus we know what it was the last year it became bond yields and huge steepening of the yield curve. we called it the 3r trade. rotation, recovery and reflation. in the summer, everybody is focused on crypto. what is the main thing to watch? the fed? covid? what do you think it is, bill? >> i think it is still -- the fed will not do anything i'll say i set them to the side for now.
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i think it is continuing to watch the covid and how much mobility that being said, i know you talk about it a lot people are out and about kind of, i'll say, no matter what, in one sense at this point. i think the thing to watch in the end is earnings. that's the really good story, obviously, that we're in this quarter. that will continue because the economy, for 2021, looks awful good i think, although i told the story of worrying a bit more about bumpiness at end, the good news is you will have nice support from earnings. >> yeah. important point. by the way, thank you for that, bill if you live in d.c. or new york, which the capital of politics and media, you think everybody is locked down the rest of the country is saying what are you doing lback east that said, bill, we talked about this over the last couple months if there is a big underlying
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economic strength that we simply do not highlight enough. i get tens of millions of people were destroyed in the beginning of the pandemic. the unemployment rate is where it was in 2014 the benefits are about the same who have lost their jobs. eight in ten people are doing better with the economy. i wonder if some people never took the sledgehammer hit. i wonder, bill, all of us are working more than we used to >> i think you are right we have been talking about it here i do think we are up for a very strong recovery because of what you said you can't set aside a lot of people suffer during covid the good news is you have a lot of cash out there. you have frankly a lot of
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demand you know, things we're seeing around here is signs of people needing people for restaurants and any of the service industries, frankly, probably having trouble getting people. that's costing them business right now which is a shocking turn of events that's good news in the long run, anyway. >> yeah. quickly. where is value where are you putting clients' money? >> i still like the banks. that's a really good spot. some guard against higher rates. >> bill stone, we appreciate it, bill thanks for getting up early. >> thank you take care. we are hitting the gas this tuesday morning. coming up, a rare win for big blue a stock that's already up more than 15% in the past two months. what ibm may have finally gotten right. plus, a "worldwide exchange"
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banking, lack of business travelers and big blue big money stories. they all don't have to start with the letter "b" but they do. zions bank in the west has better than expected first quarter earnings rising capital ratios and zions is up 2% stock number two united airlines. losing $1.4 billion in the first quarter. business travel has not come back it remains weak. revenue shy of estimates united is adding new international flights like a ne newark, new jersey to croatia route. by the way, united ceo is on "squawk box. at 8:00 a.m. this morning.
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stock number three ibm. big blue getting bigger. congratulations, ibm you finally broke the quarterly streak of falling sales. the company also says it is confident about getting back to pre-pandemic growth in the second quarter of the year still on deck on "worldwide exchange." oprah and natalie portman and jay-z and howard schultz why they are going all-in on an alt-milk brand today's big number 3.8 million. that is how many single family homes in the u.s. are needed to meet the current housing demand according to freddie mac
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redefining insurance. when it's hot outside your car is like a sauna steaming up lingering odors. febreze car vent clips stop hot car stench with up to 30 days of freshness. get relief with febreze. welcome back let's step outside of the world of money and business and get other headlines. phillip mena is in new york. >> good morning.
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the jury will continue deliberations after hearing closing arguments from the defense and prosecution. it could be hours or days until they reach a decision. if convicted, the most serious charge is up to 40 years in prison a first-time offender would be sentenced to less. walter mondale has died at the age of 93. he shaped the democratic party and redefined the office of vice president serving alongside jimmy carter mondale championed progressive policies he made history in 1984 by selecting geraldine ferraro. finally, starting on april 23rd, new yorkers will get shots under the big blue whale in the museum of natural history. it comes with free admission for a future visit brian, come for the protection
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and stay for the planetarium >> i like that where did you get vaccinated cvs. what about you under a giant replica of a whale. i look forward to going back we'll get a coffee >> looking forward to it thanks, brian. take care. ahead, shifting the blame. what elon musk has to say about last weekend's crash that led to the deaths of two occupants. neither of whom, apparently, were in the driver's seat. if you are not one of the few in america who hasn't, s subscribe to our podcast it is called "worldwide exchange." it's pretty good, i'm told dow futures are down we're back in a moment
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it's all up to netflix, j&j and, yeah, dogecoin. what's it going to take to keep stocks moving higher and how the reddit army has adopted a new dog. tesla's ceo elon musk speaking out about the crash of one of his cars and what it says about the tesla's real auto pilot feature. covid all but over by july
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why a bio-tech analyst says it is possible and where we now need to focus our global medical attention. it is tuesday, april 20th. this is "worldwide exchange" right here on cnbc ♪ ♪ you know, some of you say the show is all heart. welcome back i'm brian sullivan thanks for joining us. we're playing "barracuda" by heart. here is how we are halfway through the 5:00 a.m. hour you still have six minutes to go if you need to be somewhere at 5:30 futures are trending down. higher on the nasdaq the markets did not do a lot yesterday. dow dropped .30% the s&p, by the way, failed to hit a new high for the second time in 13 sessions. we were weaker, but keep the big picture in mind. i don't mean a week ago.
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strong for the past couple weeks. maybe a pause right now. dow futures down 78. the nasdaq dropped 1.4% yesterday. we are slightly in the green right now. the big action inside the market is really on semiconductors. that's a leading indication to watch. they did take a big hit on monday the semiconductor etf falling 7% watch the semiconductors bonds and yield over the 1.6% mark if they move higher, it could do what it did a few weeks ago. impact growth stocks keep the rotation trade going. we are watching the 10-year at 1.62%. oil today is a big day for it. if you remember, one year ago, crude oil with with the crazy uso contract and etfs inside the
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market actually went negative. at one point, oil was trading at minus $40 a barrel because producers had to pay people to take the assumption of ownership away from them what a day that was as well. what a turn it has been for the price of oil crude oil which tom lee said yesterday is important for the overall market even if you don't think so crude oil up 1% right now to $64.04 $100 turn around from the lows of exactly one year ago. now to some of the top oil -- or top stories rather elon musk is denying the auto driving system was involved in the deadly crash in texas involving one of the company's cars musk making that claim on twitter. writing, data logs recovered so far show auto pilot was not
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enabled. he also said that feature does require painted lane lines and apparently where the accident occurred did not have them federal officials and local police are investigating the crash involving the 2019 model s. they have not completed the investigation. it is very early the preliminary findings have been inconclusive. two gentlemen did lose their life in the wreck. apple is set to hold the first product launch of the year today. the company is remaining tight-lipped of what it will un un unveil apple will launch a version of the ipad pro and imac with colors the rumored air tags to help you slap on a phone or luggage or keys or anything you might lose. the find my air tag feature. oatly is sttaking a step tog
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public the alt-milk company filed for an ipo yesterday the move comes less than a year after blackstone group and celebrities like oprah and jay-z and natalie portman took a stake. a net loss of had $420 million in sales last year and plans to list under the ticker otly let's get he back to the markets and your money check out bitcoin this morning bitcoin is down a bit this morning. following the wild moves of the last 48 to 72 hours. bitcoin down to $55,190. it is still up exponentially from a couple of months ago. this, while the u.s., waits for the first bitcoin etf. canada is moving on to the next thing. you go, canada
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three funds offer investors direct exposure to eter. expected to begin trading on the canada stock exchange. i'm on fire this morning dogecoin traders are trying to whip up a doge day frenzy on twitter. they want to push the price of crypto to $1 dogecoin was less than a penny a couple of months ago it is now up to 40 cents now it was started as a joke and has no fixed amount, by the way. dogecoin is up 8,000 this year that is not a mistake. 8,000% this year reddit traders abandoned gamestop and others and gotten involved in the dogecoin let's talk all things crypto
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with sara coombs sara, are your institutional clients, i mean people in the marketfor 30 years, saying wha is dogecoin and should i invest? or are they watching from the sidelines with amusement and terror >> you know, dogecoin is a great hobby coin if you can't get to vegas and you feel like gambling on something silly, we have an alt coin for you i don't think investors are looking at it as seriously as etheron. every day, there is a main character. re reddit decided it is dogecoin. >> have you seen the movie
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"swingers" sarah they got $50 and they sit down and they don't know what they're doing. they say double down they have just enough to double down of course, they lose you are pulling for them you want everybody to win, but you get the impression someone is left holding the doge bag, if you will >> that is a sub culture in the wall street community where they talk about that. you want diamond hands. >> laser eyes. >> diamond hands laser eyes if you hold too long, you could lose it all. so that, i think, is a big experiment we'll see today >> is there a risk, sarah, because of dogecoin, it is like the goofy kid in the class that ruins it for everybody, not that i know what that's like. there is real crypto that serves real purposes.
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ether, it has a lot of utility mark cuban and others love it. bitcoin. 21 million harder and harder to mine. there are people out there who say, no, no, no. this is not a fake coin with a dog on it. if dogecoin ends badly, could this have a ripple effect, no pun, because they are all lumped into the same basket right now >> i think at this point, sophisticated investors understand the difference. if you have a hangover, you don't blame fine wine. they are related it is a fun coin it is novelty. it shows the strength of the meme investors we saw this with gamestop. we have seen it with crypto at some point speaking of smart and serious people involved in crypto.
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elon musk is certainly perceived by most to be very smart he has been a huge fan of doge recently >> he has. a lot of people made a lot of money. i've been doing this a long time amazing to watch you are rooting for everybody out there as the army of individuals pushes and wills this coin higher it is a heck of a thing to watch. sarah, i promise it won't just be about the doge next time. thank you. all right. let's talk to a unicorn. a private company valued at billions of dollars. that company is sweden based klarna it has a valuation of a stunning $31 billion. 31 unicorns. offers micro payments globally instead of paying $8100 for
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something, you can pay $81 for ten months they are doing well by doing good joining us for the exclusive is klarna ceo hesebastian. thank you for joining us you just heard our thing i know you have a safe tie-up. you are a payments company how much are you watching the crypto world am i going to be able to buy something through klarna on blue mercury web site using dogecoin soon >> i knew that question was coming i think we'll see. a lot of promise if the cryptocurrency at the same time, we're deeply worried to your point, the big risk is when my cab driver is asking me if i should invest in bitcoin, i get nervous as much as i'm excited, i'm
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worried about talking about it there is a big risk and speculative play at this point in time. you know, when i say what i just said, i promise you will have 500 people on twitter chasing me and daring to express skepticism it is a sensitive topic you are asking me about. >> i know. when people are playing with their money, they tend to get sens sensitive. if you are along with it, you want people to talk it up because you make money i know you partnered with a swedish based cryptocurrency i only bring this up, not because you are a trader, but one of the biggest payment companies in the world people are starting to ask and look around to pay for stuff and in new and unique ways. >> there is one thing that is true the credit card industry as a
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whole, it is an $8 trillion business that's what they will tell you does that make sense is it really meaningful that society pays $8 trillion for shifting money back and forth in accounts it is not long-term sustainable. this retail banking industry is up for destruction and it will be a smaller business going forward. the industry will shrink obviously as part of, you know, for our shareholders of klarna, our ambition is to be part of the positive drive of making this business better for consumers and less costly for merchants and driving that positive position. bitcoin could be one technology to help that shift there is a lot of promise. to your point, we have 17 million users now in the u.s we went live with all of the physical stores and something coming up for earth day which is
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exciting for us. >> the give day pledge this is important. it is not just because you are doing your part to tackle climate change or go after it. this is, and let's be clear to our audience, that may scoff, this is good business. is it not? it is not just younger people. i know people in their 70s who act like this. when they look at vendors and they look at things that match up with their societal feel and what they want to have happen and they look to choose venders that match up. doing good, like give one pledge, also can be very good business, correct? it's not some green washing pr stunt. >> look, the problem is when people are saying you are trying to green wash. i said what is the better option not doing anything at all? nobody knows how it will work. it is charting and trying. one of the things i'm excited about is one thing we reflect on is going out and demonstrating
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in the streets or writing petitions. it is a good thing it needs to happen it is good that people show they are really passionate about this we realize one thing nothing as powerful to change companies because consumers vote with their wallets if we buy this thing and not that thing, that changes industries and companies quickly. the idea we will launch is amazing. 90 million users of klarna will see the climate footprint of ever every purchase they do launching it to all of our users is unheard of. it is when you shop food today you can see how much fat is there and sugar is there why hasn't that happened before? 65% of gen cfeel reducing the
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carbon footprint is important. if we allow consumers to vote with their wallet, we think it is a good start. again, it is a big challenge we will try and learn. we will improve as we go >> very quickly, sebastian in over 60,000 retail stores give us a take on how you see the global consumer. as a ceo in sweden, when do you expect to be back in the office? we are asking all of the ceos? >> you don't want me to get started on swedish vaccinations. don't go there what is exciting for retail is we see 40,000shoppers that we lost, they really miss the physical stores and instant gratification and buying and returning and trying on. however, contactless features are here to stay this is massive boost to all
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contactless payments we are supporting those. we have apple pay as well as google pay i think people are dying to come back to the stores that is interesting to watch in the coming weeks. >> sebastian, thank you. we will not get you started on the swedish vaccination campaign we'll talk soon. thank you. >> all right thank you. take care. coming up, speaking of, morgan stanley's matthew harris is standing by with our vaccination rollout and the one country that has basically wiped out the virus and what it means for our future in america. stick around wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office
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they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company. when it's hot outside your car is like a sauna steaming up lingering odors. febreze car vent clips stop hot car stench
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with up to 30 days of freshness. get relief with febreze. welcome back now to the daily vaccination update our march out of the pandemic and there is a lot of good news out there. nearly 15 million doses have been doled out in the last four days 80% of american adults over the age of 65 have had at least one dose of the vaccine. so as our vaccine program keeps booming, what could our future look like? look at israel israel has all but wiped out
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covid. not quite gone, but darn close on january 15th, israel had 8,817 cases. last sunday, just 146. a drop of 98%. it all began as the vaccine penetration hit. i know, israel is a small nation easier to keep people from moving around much still, many on the street are looking at israel as an optimistic data point in our continued fight. we always try to bring you a little hope and optimism here on "worldwide exchange. a lot of scary headlines stay vigilant. there is an end. let's bring in morgan stanley's matthew harrison mat matthew, thanks for joining us is israel a good guide for us or is it too small of an
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indication kind of like the uae and bahrain to be any meaningful index for the united states? >> i think it is a good co correlary to look at, brian. they are north of 81% of people over 16 and the vast majority of the unvaccinated are under 16 because the vaccine is not available for the population yet. in our work, we think the u.s. could be at that point by the middle of summer it is something we can potentially look forward to. >> are you -- are you suggesting the possibility and i hate the term, but the possibility of the herd immunity by summer? >> in our work, if the u.s. continues at this pace of 3 million doses a day, we could
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hit 75% of the eligible population which is those over 16 by the next month or two and by the middle of summer where everyone could potentially that depends on the willingness and from the supply standpoint, we could be there. >> that is not factoring in natural or acquired immunity it is an extra buffer. matthew, does the j&j pause which is looking more like a stop than a pause, does that impact your projections at all >> it does not we fortunately have plenty of supply from pfizer and moderna you know, almost all of the vaccines given have been from those two. the good news is by july, we will have north of 600 million doses of supply from pfizer and
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moderna which is more than enough to cover the eligible population >> wow you know, we are, to your earlier point, matthew, and i put this on social last ight starting to see peak demand. we got lots of vaccines. i know louisiana hit peak demand last week. the u.s. is looking good in many spots. is it time now for us to start to share the vaccines with the rest of the world? good politically and economically how worried are you about the world's rollout? >> it is important to focus not just on the u.s., but the rest of the world for two key reasons. the first is it is a global economy. you cannot turn that completely back on until you have the rest of the world vaccinated. the second is outside of the humanitarian aspect, if you
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don't roll this out worldwide, it has the potential for other variants to increase it is important to help countries outside of the united states the faster we get the global population vaccinated, the less risk and fewer variants developing >> i put out again seasonality is the dirty word in covid circles. and that aside, matthew, it is hard to believe. there are about 4,000 different variants the south african and the uk and brazilian. there is a lot give us a reason to be optimistic about the variants and vaccines and where we're headed >> sure. the positive aspect here is although we have vaccines that have qualities that could make the vaccines less effective
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against the variants, the vaccines are effective in protecting serious disease or hospitalization. from the perspective of having very severe disease, you don't see that even with some of the most worrisome variants. the hope is that the vaccines are quite good at what they do and as more and more people are vaccinated and transmission goes down adds a level of protection. >> that is so key. i cannot reiterate it enough matthew harrison, it is about outcomes we want cases down we don't want people to get sick or worse matthew harrison, we appreciate you coming on. thank you. have a great day >> thanks, brian you're welcome on deck, three big stock picks from victoria green. including one big tech stock which is starting to get real love again. plus, your morning rbi this one, folks, is straight-up
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bragging why this cnbc show, "worldwide exchange" really is the g.o.a.t. sorry to all my friends and colleagues. if you have not already, subscribe to "worldwide exchange" podcast. if it is too early or too late and miss us, check it out on spotify or apple and others. the dow is down 144. we're back after this.
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these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate at scale are going with a smarter hybrid cloud using the technology and expertise of ibm. with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity,
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we can make it work for you and your business. your morning rbi has to do with the g.o.a.t not tom brady or an actual goat. get out and travel the 22 stocks we put together late last year to tie highlight coming of an end to the pandemic most of the index is composed of what you think airlines, cruise lines, sit-down restaurants and the like
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it is not a real index we made the g.o.a.t. index for fun. to highlight the stocks like someone forg getting the luggage the g.o.a.t. index -- according to the chart, it isup 28% sinc january 1st. 16% more than the s&p. beating all of the others. all 22 of the g.o.a.t. stocks are higher this year if you really want to get random, but interesting. the single best stock has to do with flippers. whale of a year. maybe we will give that the seal of approval. maybe i should stop making bad puns we should have made this into an
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etf. you go, g.o.a.t. you go "worldwide exchange." ra random, but interesting. and we have victoria green the founding partner of private wealth did you put your money in s seaworld at the beginning of the year >> i'm waiting for the g.o.a.t.etf. >> i'm finished. i missed it. >> and travel stocks have done well we have a couple of we look at hilton cruise lines are on hold hopefully it will get the sailing from the cdc at some point. >> go on i feel like the g.o.a.t. is gone i look at the valuation. this is interesting. ibm. with all due respect to my friends, i love you.
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the company was ignored for 15 years. they finally broke a decline in sales streak this quarter. you like the stock it has done well what has ibm gotten right? >> the cornerstone red hot the first too maime they shown revenue growth this year the new ceo is shifting the culture and spinning off the game with the ai and watson and integrating that with health care we see this as a well under valued stock strong governance. it is never easy to turn a stock. like turning a battle ship, not a speed boat it is also yielding 5% you can sit back and collect the dividend as it turns into a growth story which we think is headed in the right direction
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finally. >> by the way, another super tanker, chevron. you highlighted that name before a name you still like. >> absolutely. you know, demand play and reopening play a strong dividend. i think they are the crown jewel of the oil space oil above 60, a lot of companies are profitable merger and acquisition last year got them more land we see them well positioned. we see them as a better defensive play in oil and gas. not a strict emp they have a good balance sheet and strong cash flow we see them as a great way to get exposure to oil and gas and a quality stock. >> two big names that fell out of favor for a long time now back in favor. you think has the momentum not about the dogecoin big buy. victoria, pleasure to have you
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good morning stocks set to continue yesterday's pull back. we'll show you what is moving right now. 10-year back above 1.6 that was pretty brief that we were below that level. that's part of the problem. elon musk says auto pilot was not engaged in the fatal tesla crash in texas over the weekend. details ahead. earnings season rolls on we hear from three dow com
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components and bring you the ceos of johnson & johnson and p&g. it is tuesday, april 20th, 2021. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. you will see equity futures with a pull back. dow futures are down 135 points. that's about how much the dow dropped yesterday. it was down 124 points only a decline of .4%. s&p was down, too. this is only the second time that the s&p hasn't set a new high in the last 13 trading
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