tv Closing Bell CNBC July 1, 2021 3:00pm-5:00pm EDT
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investors. the company saying all of their segments are seeing higher costs. >> look at the shares. only down about 1% so a lot of these concerns are priced in or people think they're going to be transitory. >> word of the year. >> it was. that was the show of the year. thanks for watching "power lunch," everybody. "closing bell" starts now. thank you, kelly welcome to "closing bell" i'm sara eisen here at the new york stock exchange first day of the second half of the year s&p 500 on pace for another record closing high the dow and nasdaq higher as well >> i'm wilfred frost let's look at what's driving the action today. the energy sector, top performing sector up more than 1.5% as oil prices hit the highest levels since 2018. jobless claims come in at 364,000 better than expected
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ahead of tomorrow's junes jobs report and walgreens falling 6% 59 minutes left to go in the session with nearly every sector in the green just staples slightly low. >> we have a great show coming your way in a few minutes we will speak with the commerce secretary and her thoughts on american business in china and especially in light of president xi's warning to foreign powers overnight. plus krista lina georgieva joins us for her look on growth. we'll talk to her. and speak with the ceo of the intellia looking forward to that. let's get to the big stories we're watching, we have the latest on robinhood's long awaited i.p.o. filing.
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kate, let's start with you and that i.p.o. filing from robinhood. >> robinhood plans to list on the nasdaq under the ticker hood h-o-o-d. we got a look atle some of the financials in the s1 this afternoon. the company reporting a loss of $1.4 billion in the prior quarter. i'm told this was due to a one-time write down on debt it issued back during the gamestop stock saga it raised about $3.5 billion, that was in convertible bonds at a 30% discount so look at that total number they raised that was the size of the loss at robinhood revenue came in at 522 million for the quarter. as far as where they're making the money, the majority is transaction revenue and payment for order flow, most of it comes from options trading, it makes up about 30% of revenue, or did in the prior quarter
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equities about a quarter, and cryptocurrency makes up roughly 17% of total revenue up from 3% a year ago. so other growth metrics, 18 million net funded accounts up from 7 million a year ago. about 150% increase. assets under custody, 80 billion. that was up from 19 billion a year ago and they are setting this between 20 and 30% -- 35% of the offering for retail customers on robinhood's platform the risks, this company mentioning a lot of ongoing regulatory investigations. a lot of mentions of litigation matters. one they highlight specifically, the u.s. attorney's office issued a search warrant for the ceo's phone so a lot of mention of litigation. payment for order flow, risk of regulation there and what gary talked about, stimulus checks ending, and finally doge coin they say if interest slows down,
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that could be a risk there investing accounted for 34% of revenue in q-1 that was a substantial portion of revenue >> do we know who's selling and whether, in fact, this is a very quick, profitable turn around for some of the people who helped bail them out, invest at the peak of the gamestop craziness. >> some of the venture capitalists i mentioned got in at a 30% discount. if they do sell at the i.p.o., looking like a good deal in hindsight. but we don't know who's getting out right away a lot of retail investors are getting the opportunity to get in on robinhood stock but only if they invest through the robinhood app. so incentive to use robinhood there. >> we asked the head of enforcement yesterday if the timing was a coincidence because we knew the i.p.o. s1 was coming
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she said nothing to do with that but clearly they needed to get that behind them michael santoli what was your take did you go through the s1, what stood out in terms of the financials here? >> the business they've been operating roughly around break even, a little better than break even, if you take away the extraordinary charge kate mentioned based on the convertible debt offering. i think that's a reasonable model given how fast they're growing. we talk about 18 million or so funded accounts. $81 billion in actual assets under custody, client assets for $4,500 per account with a heavy reliance ontransaction revenues in options and cryptocurrencies, the bet on the stock is a bet how fast the categories can continue to grow, the base is going to be engaged and whether there's a tribal infinity around the brand.
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so now it's competing against a schwab, which is ten times the size of revenues, 20 times the size in terms of client assets and what do they have to offer they have a real engagement with the current generation of investors it's a question of what you pay for it on an ongoing basis. the business seems to be performing well but tons of small accounts unclear how many more there are to attract. >> 17% is crypto revenues. >> options and crypto is 50-something percent of the revenue in the first quarter. >> the broader market, first day of the second half of the year, on pace for a sixth record close in a row what are you watching into the close? >> the market is do canning what it's supposed to do in a sense we talked about the first few days of each quarter the last year and a half is strong, strength begets strength the s&p 500 in a grinding way, not really lunging or having a
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broad surge is continuing to click, two new highs better than 15% year to day. 2.5% in three months one difference in the last few months is that you have had a skew toward large stocks and fewer stocks that have been participating in this rally. people quibble saying the breat is not that great, look at the stocks in the market and the russell small cap. you see this is the last three months on a year-to-date basis the small caps are still outperforming. obviously you see the spread here and small caps are not breaking out in a decisive way whereas you have the extra large top stocks in the market doing well the cyclical tone reasserted itself today people maybe looking to a strong jobs number. look at the consumer discretionary and industrials on an equal weighted basis, those
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are the top two here the bottom two equal weighted utilities and consumer staples so you're not really seeing a defensive turn in the market that would be a bad macro indicator but you are seeing some of the steam dom coming out of the areas, looking like the way treasury yields are set up too. >> semis not in the rally which is a shift. >> we have micron waying on that group, it was green last i looked. >> we'll talk micron in a moment good quarter, lousy reaction after the break an interview with commerce secretary gina raimondo her thoughts on the jobs report and the chip shortage. dow is up 105 session highs around 115 we'll be right back.
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yes! hold on. get a powerful and secure connection you can count on. only with xfinity xfi. and see f9 only in theaters. ♪ ♪ weekly jobless claims hitting a pandemic low of 364,000 in the last week this doms as millions of americans are still receiving pandemic benefits. we sat down for an interview with commerce secretary gina raimondo to talk about a number of topics including whether long-lasting generous jobless benefits are holding back the labor market from growing as fast as gdp. >> it's so hard to tell in the data still the biggest reason people aren't going back to work is they're afraid you know, they're afraid of getting covid, they're not sure if the customers that they'll be
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working with have been vaccinated they can't get child care. so the unemployment benefits were always meant to be temporary. they were vital lifeline for people, they were there when folks needed it. it'll be gone, obviously, in the beginning of september the real issue, i think, is that a lot of the jobs that folks lost are the kinds of jobs, let's say, for example, in retail or services industries, that are -- might not be coming back or might not be coming back in the same numbers. so what that means is, we have to lean in to apprenticeships and job training and upscaling, because the jobs that are being created in cyber security or in the digital economy or the tech economy are there and are good paying we need to make sure that the folks who are unemployed have the skills that they need in order to get those jobs. so that is the continuous work
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that we, in the administration, are focused on >> madame secretary, you made some comments yesterday about the chip shortage, the semiconductor shortage and said in search of cheap labor we offshored so much manufacturing and we wake up vulnerable one day because we don't make this stuff in america, and we want to be making this stuff in america. i wondered z how achievable that was in the short term but if you would accept in that particular area it's very much a continuation of the last administration when it comes to the policy on this sort of area of trade, particularly with china? >> so it's absolutely possible to make semiconductors in america. in fact, we do it every day, intel, micron, huge companies here employ hundreds of thousands of people, making chips, designing chips, making the equipment to make chips. we just don't do enough of it.
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and not that long ago we were producing a third of the world's chips in america and now we're down to about 10%. so we just need to reinvest in the research and development and manufacturing and job training so that we can have more indigenous chip manufacturing and design in america. >> speaking of china, i wanted to ask you about president xi's speech today, marking 100 years celebration of the communist party. he issued a warning to -- nothing descriptive around specific powers but foreign powers that interfere with the chinese, bully the chinese and specifically he said, anyone who tries to do so shall be battered and bloodied colliding with the great wall of steel using flesh and blood. if you're a u.s. company, a
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multinational company that does business there, how do you deal with the tensions brewing right now? >> obviously, a lot of bluster and rhetoric i think the u.s. companies need to focus on doing their business and certainly, one of my jobs is to improve export promotion and we will be doing that with u.s. companies. we'll do everything we can to make sure our u.s. companies are treated fairly and are able to have access to the chinese market we will make sure that that is the case that the chinese play by the rules, protect ip, allow our companies access to that market. but really what we need to do here in america is let's just play our game. right. let's be a strong america. let's invest in research and development, in infrastructure, invest in job training and be the strong and great country that we are, great economy that we are >> what about china's human rights abuses.
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we saw another round of individuals sanctioned last month, at what point will more than sanctions be used because, clearly, these human rights abuses have persisted for quite some years and sanctions aren't stopping them. >> so they're unacceptable to say the least, they are continuing and we need to make sure that we do what we can to stand up against them i think the key is, working with our allies and president biden has been very clear about this. we were just over in brussels a couple of weeks ago, the president led a delegation there. rejuvenating our long-standing relationships with the eu. ultimately it's going to take not just america, but the ally countries that believe in democracy and have shared values to put enough pressure on them
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to stop these clear and unjust and inhumane actions >> just to bring it back to companies who i know you talk to all the time, nike for instance had backlash because the ceo last week said they're a company of china for china elon musk tweeted today about the chinese government praising them for their infrastructure and for the prosperity marking the 100 years. should these companies be doing that they obviously have a lot to lose because they have a lot of business riding on china at the same time, companies now are encouraged to speak up against human rights and abuses and issues like that >> well, you know, listen, i'm not going to tell any ceo what to do or how to run his or her company. certainly, were i ceo i would be speaking out against human rights abuses. i think we ought to all be able to agree that when we see human rights abuses, when we see
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racism, when we see this sort of behavior, we ought to speak up and speak out, that's leadership having said that, as it relates to china, i think, you know, what i'm planning to do is focus less on the rhetoric and more on the action >> how damaging is it to commerce, madame secretary, that we haven't reopened international travel yet particularly with certain developed nations that seem to have betterrates in terms of the virus and vaccinations than any point in the last 12 months? >> it is concerning, certainly and the administration is extremely focused on this. and we are eager to reopen as quickly as is safely possible. i will tell you, i am deeply engaged with industry, just was recently had a meeting with all the executives of airlines, have been talking extensively to industry, and it is certainly a factor at this point in our
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recovery so we are working as hard as we can to do what we can to reopen safely, following cdc guidelines but it is definitely something i'm hearing about quite regularly from businesses. >> no doubt. we need that tourism back. finally madame secretary you mentioned the infrastructure plan i know you're also focused on the american families plan what would you say to critics we hear a lot on wall street that see this specifically as a partisan bill which it would pass from reconciliation that is a government overreach that includes higher taxes and massive entitlement spending that ultimately could damage our debt and growth picture? how do you react to that >> yeah, obviously, i don't agree with that. what the president is calling for are basic investments.
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investments in child care so that every child can go and have high quality public pre-k that's good for the children and, frankly, it's good for our economy because moms can't go to work if their children aren't cared for. he's calling for big investment in the care economy, which is home care workers. same thing, there are millions of women working right now taking care of our loved -- our elderly loved ones, working full-time in poverty they deserve a raise >> and strong defense there, of course, of the biden policies. that was commerce secret, gina raimondo we thank her for her candid comments. especially on jobs where she said some of the retail and service jobs may never come back in the same numbers. surprising >> very interesting there. still ahead we'll speak with the ceo of intellia, a company who's stock is up 90% this week.
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check out bitcoin prices, down around 4, 4.5% today. 33,200 of course, has been bouncing around there fairly consistently and importantly not back below 30 which it briefly did a couple weeks ago. and our latest quarterly stock report we asked strategist where they think bitcoin will be by the end of the year. >> 44% said below 30,000 just 6% said 60,000. more when we come back this is andy, my schwab financial consultant. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him.
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welcome back the ftc voting on a policy statement change this afternoon that could broaden its regulatory scope we have the details. ilhan? >> the federal trade commission has struck a policy about going after unfair competition only when it harms consumer welfare this is a controversial move it could signal more aggressive
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action, especially against big tech in the future >> the commission's efforts to constrain section five in this way have only hindered the agency's enforcement efforts >> now business groups, including the tech industry, oppose this decision arguing that they need clear guidelines for actions that could trigger the ftc's ire. c khan said they'll be issuing new guidelines by the end of the month. >> we'll see where that goes thank you. still to come, danny meyer will be with us to talk about how the restaurant reopening is going so far and why he's having so much trouble hiring new employers. plus kristalina. a new check on bonds, yields are
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read out two weeks ago and didi, the ride sharing company went public yesterday here, it opened at $15.74 and is now at $16.37 or so, so regaining 16%. close to its highs from yesterday. >> it's like a delayed one day p. time for a news update >> hello, everyone here's what's happening at this hour bessemer trust the company set to become the co-conservator for britney spears backed you on out of that deal they no longer want it after she wants the con ver orservator to. ant ant
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in early female aerospace pioneer getting her chance to go to space jeff bezos has chosen holly to join her on the rocket she's excited about that she's one of the amemercury 13 women who went through the training in the '60s but never got to go to space because she's a woman. it should be an interesting trip to space she's set to be one of the oldest sent to space shares of bio tech company intellia surging 90% of the past week the ceo will join us next to talk about the future of gene editing. don't go anywhere. doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade.
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intellia shares soaring after announcing positive data from a gene editing experiment the company also announced the pricing of a secondary offering of $145 per share and expects approximately $600 million in proceeds joining us now in an exclusive interview is ceo john leonard. good afternoon to you, john. thanks for joining us. >> my pleasure, thank you. >> tell us first of all just briefly if you may, what is so new and ground breaking about this treatment and this development? >> right so this is the first systemic administration of crisper where we infused it into the body and inactivated a disease causing gene in a targeted fashion we were able to completely inactivate that gene and see it in the clinical effects of the
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patient. so a major extent. >> to what extent can this be applied to other diseases as well is this broad or targeted in what it is used for. >> i think crisper itself can be broadly applied. the challenge is getting it to the particular genes that cause disease. we start in the liver which is an area where there are many problems with disease causing genes and shown we can reach that very successfully there's other tissues after that we're going after, especially the ne marrow, a long list of blood born type of diseases can be addressed and after that a lot of work going after affected gene and other tissues. >> can you target the most common diseases and causes of death, diabetes, heart disease, cancer >> some diseases are caused by one particular gene and i would say where we are right now, this sort of approach will be very,
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very successful if we can reach them in the respective tissues others that have many different factors are going to be more difficult to tackle. >> what are the dangers of this approach, john gene editing sounds fabulous when it works. is it bad when it doesn't work are side effects worse than other treatments >> the break through is we've been able to demonstrate incredible specificity which means we can target one gene that causes the problem and inactivate it. so in many respects people are excited we de-risk a lot of the questions that have initially applied to the field so generally speaking i think there's a lot of enthusiasm this will be able to be applied safely. >> it's very exciting, john. you can see it in the stock price and just reading about this kind of development could be a revolution. but it's just phase one.
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so basic proof of principle, of concept. how long will it take and what are the next steps to get it to market and actually get it into use, to put it to use? >> i think it's an important point and i appreciate that you noted that i mean, this is phase one results. that's the initial use in humans these approaches are subjected to the standard sorts of clinical trials that any drug or gene therapy would be studied under. and so we're in the earlier stages of that over the next very few years we would expect this would be, you know, subjected to those standard sorts of tests but our hope is that this will be available to patients very, very soon and what we learn from this initial trial will be principles that we can apply to a whole raft of other indications. >> on that point and to sara's earlier question i had read that heart conditions could be a
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clear target for this, is that right? >> it depends on the particular condition. i think people are very interested in pursuing certain risk factors that affect lipid meta metabolism, cholesterol and things like that modifying those genes or inactivating those, i think most people will expect to confer a significant benefit to patients. >> i understand it's pretty expensive, john. what is the cost of doing this and does that make it a barrier to making it a widespread treatment at least initially >> we've certainly not priced it yet in its early stages. in fact, we believe over time this is going to be valuable for patients and resource sparing for the health care system overall. it comes down to some of the advantages with single application, where literally it's a one and done therapy for most indications that we imagine. so that we expect over time will
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be generally very, very favorable in the economics of this entire field. >> what is the actual overlap, john, with the technology that's been used in covid vaccines, moderna and pfizer covid vaccines >> it's an important because there are similarities but very, very key differences as well where the overlap applies is on the delivery where lipid nano particles is very similar in the cargo in both cases is a form of messenger rna, the difference is what they encode in the case of the covid vaccine you make a piece of the virus that the body responds to and you raise an anti-body to that very effectively in crisper we're creating the gene editor inside a cell at that point so it actually alters the disease causing gene so similarities but the final pathway is different.
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>> does crisper have other use cases, in animals for instance or crops the imagination can run wild once you can modify dna, i wonder if you guys are thinking about that and if it raises -- at some point it's going to raise some societal and ethical questions. >> it's based on human, that's what we do, we think of it first and foremost as medicine it's true it could be applicable to anything with dna, if you want to think about it with those terms so that does apply to agricultural uses and animal husbandry and things like that those are important things to think through before they're applied. but with respect to the medical uses, these are the standard sorts of risk benefit analyzes that we do with any drug. >> please keep us posted on the clinical trials, it's
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zone, commercial free coverage of the action going into the close. michael santoli here to break down the crucial moments of the trading day. we have stephanie link with us as well. good afternoon, stephanie. let's kick off with the broader markets, major averages in the green, s&p 500 on track for another record close, the longest daily winning streak in five months. mike we wondered whether start of a new half, month, quarter, however you want to put it, leads to a pull back, and no it's the cyclicals starting the second half off well. >> it's the other direction usually. we settled down at the end of last quarter but still managing to do just enough to keep the records coming yes, we reloaded a little bit on the more cyclical stocks today, industrials, financials, decent jobless claims number i guess got people leaning in the direction of seeing the three
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and five yield treasury in particular, getting a lift, the area that's sensitive to the distant expectations for what the fed might do we've seen it flop back and forth day by day but today it is a matter of reasserting the cyclical optimism. >> energy, utilities strong today, health care doing well. have you made any significant portfolio moves entering the second half? >> i haven't my thought process is the same, there's so much liquidity in the system, inflation is creeping higher, certainly commodities some are split at this point but i believe inflation, even if it's transitory it's going to be longer before it calms down. i think with better growth, inflation, i expect rates to rise into the second half of this year that's why i own cyclicals. that's the story, sara, you believe we're at peak growth and we're going to accelerate hard or we're at peak growth and
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we're going to stray strong, that's where i am. if that's the case you want more cyclicals, values versus growth. i look for opportunities on the growth side, i just added expedia last week and that's a growth stock but also a reopen mike mentioned jobless claims we talk about economic data all the time because it's really important and jobless claims were good. we're down eight of the last nine weeks the announced layoffs are down four out of the last five months that's the lowest jump since 2000, and is ism was chalked full of stuff. the one area i look at is new orders, it's a leading economic indicator for cap x and earnings, that's up above 60 for the last 12 months that's very good leading economic indicator i think you have great earnings, led by the cyclicals but let's watch the delta variant and the economic data to see what kind of rotation continues.
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>> i thought you were going to call out the ism prices paid component, which was also quite notable today, the highest level i think since 1979 those inflationary pressures are being felt and are very real. >> yes it's huge. if you listen to some of the participants in the survey there was one i thought was interesting just to call out, electronics, the lead times have gone from 16 weeks to 52 weeks so that is substantial probably not a surprise to anybody because we know about the supply chain and all of that, but that's a meaningful number i think and you're going to continue to see prices go high so it's a highlight, great that you mentioned it >> how about micron, shares under heavy pressure despite better than expected earnings. josh has details what's the story here? a beat and a raise, the stock is down more than 5%. >> my cron did report and beat
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expec expectation, you saw upbeat guidance, too. its ceo was on tech check this morning, he talked about the chip shortages that's delaying demand pcs, smart phones, data centers looking strong however the company did also indicate some expected cost reductions will be less than anticipated as it shifts manufacturing to more expensive products checked in in with matt at red bush he said that's going to be higher selling prices for micron but the stock selling off in today's trade. >> josh lipton, thanks there's mystery around micron. it's often been received this way even though the company talks about stock -- are you laughing about -- and markets being up, what is the reaction here all about >> it's a -- look, this is a cyclical semiconductor company and can't get out of its own
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way, that being said it's up 56% from a year ago and up 11% into the print. we know that deram is recovering, so that's not a surprise it was a great quarter and a raise is a raise, right. but not much room on the cost reduction plan limited bit growth and we know about cap x going higher so it's like there was nothing incremental and now you're relying on pricing, so that is cyclical, right. so that's why i try to touch on multiple i'm involved in lam research, i prefer that name, but they're all up tremendously in the last year. >> mike, are we surprised that we didn't see a bigger effect for the rest of the smh in some of the other names or was it fair it's stock specific >> not in the same magnitude taiwan semis down a little bit intel has its own issues really, it's hard to filter out
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how much this is a little more of a macro cyclical type of day and that's what's privileged in the trading today. also hard to separate out what seems to be another sell the news instinct upon getting any earnings almost so far this quarter. >> interesting to see how that continues the rest of earnings seasons. walgreens on that note, the worst reporting dow stock after reporting their earnings >> wolf it was a big earnings beat for walgreens at $1.38 per share compared to $1.17 per estimate the trouble is margins were driven by strong covid vaccine volumes after administering 25 million shots to date like rite aide last week, walgreens has seen a drop in demand and is expecting to do only 3 million jabs this summer the new ceo said she's going to outline her plans for the business this fall and her priorities so far are driving digital innovations and building
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out stores and clinics as a consumer health destination. a lot of waiting to do until next fall. >> mike, to your point a lot of companies are going to be quaking in their boots that the share prices have run up too much ahead of earnings. >> but there was a specific warning here on vaccines slowing down. >> exactly so it's a little bit of a stealth shutdown play and kind of a victim of a -- you know, healthy reopening -- remember the rite aid warning there wasn't a flu and cold season and that hurt their sales unexpectedly walgreens is high in the pure value screens you get out there. it's like 10 times earnings that and cvs and life insurance companies if you're just looking at straight up valuation it's going to be at the top of your list and shows what the market has been interested in more than value is cyclical, it's old economy but not necessarily
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outright cheap and shows you there hasn't been a cushion here for walgreens. >> robinhood filing for its i.p.o. today it currently has 18 million net funded accounts, an increase of 150% from last year. robinhood plans to trade under the symbol hood, h-o-o-d charles schwab holding onto their gains today. steph, anything interesting to you about this i know you're not a typical i.p.o. buyer but everybody was watching what was inside the perspective. >> the fact they're profitable, number one number two the fact they grew revenue in 2019 from 277 million to 985 -- from 2019 to 2020 and the first quarter, 522 million, that's up fourfold so they're growing like a weed and they're
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profitable i'm surprised, quite frankly the numbers are stronger than expected i'll be watching it for sure. >> mike the other question is when this does list if it goes successfully, whether it boosts valuations of some of the other stocks that carry similar characteristics they're just not considered hot and en vogue the same way. >> you mean the other brokers? >> yes the swabs of the world more than the fidelities of the world. >> i would argue if you're valuing robinhood at anything like what they think they're going to get it's because you think it's a different animal, i'm not saying it is but $50 million you have to have mass i have growth expectations, either the overall pull of investors and how active they're going to remain. they have lots of investors, fast growth, a platform that seems to be incredibly well suited to the times but you have these questions hovering over the revenue model, payment for
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order flow, i don't have you lan nuys it the way others do. >> but the s1 is chalk full of litigation, investigations, there's an anti-money laundering thing buried in a footnote. >> they tidied one up yesterday and set aside small amounts for the others the other thing i was going to say, they do have -- i don't know if this is good or bad -- profitable areas like crypto relative to what is the bread and butter of charles schwab, selling microsoft. >> options and crypto are the engines. that's also because that's what people pay to trade. they're not paying to trade 10 shares of apple or a fractional share of apple that's something that has to be sorted out in terms of just how many more people you'll be able to invite into that world and stay that active options trading is close to a
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zero sum game. it's not as if you put the money in the account and it grows and like a schwab you might get a fee off of that. a lot of questions whether they've gotten past their peak moment of growth and confidence. >> and whether they're doing due diligence on who is allowed to -- which customers are approved to place those options trade. there were a lot of potentially worrisome accusations in there as it relates to communicating with customers. >> maybe they're past the peak moment in the spotlight but to get this point so soon after having to in emergency fashion take on funding in the earyear i'm sure a lot of people would be sweating this and saying let's just get this away. >> it shows you how strong the growth in retail investing has been to overcome all of that. >> absolutely. we have just under 90 seconds left.
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>> positive breadth day, that's a nagging concern of the market. today is better. on the volume side not as much as on the stock side new york stock exchange advancing, put it in the check column new highs, new lows, that's come to lie, 200 to 11 new lows and look at the volatility index, sticky in the 15s bottom end of the long-term range, downturning but stuck for a moment we'll see if after the jobs number tomorrow this gives way to a new low headed into a three day weekend. near session highs for the dow up 111 points it's been strong all day biggest contributions united healthcare nike, am jen, home depot adding. s&p 500 looking to set another record high. this would be the sixth record close in a row
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it's being driven today by energy utilities, communications the staples are in red as for the nasdaq -- [ bell ringing ] [ cheering ] >> i love this, it's so loud everybody is back on the floor nobody is wearing a mask >> i was going to say. yesterday i thought it was an oddity but i'm reminded this is how it always use to be. there are the cheers and they are for a record closing high once again on the s&p 500 up 0.5% welcome to "closing bell," i'm wilfred frost with sara eisen and michael santoli. the dow closing 0.4%, s&p up .5%. the nasdaq up only slightly not quite there. only one sector in the red that
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was consumer staples coming up we get the outlook for the u.s. economic growth when we're joined by the managing director plus danny meyer on new steps the restaurant industry is taking to combat the ongoing labor shortage gabriel joins the conversation as well. mike, coming to you if first seasonality, a different way of asking a similar question earlier, seasonality not kicking in yet a question people ask over the next couple of weeks. >> they will, first of all, june was supposed to be weak, it wasn't weak, you had struggles along the way, but it was up 2.5% on the s&p. you have to have an eye out though after the run we had, usually strength be gets strength but late summer sometimes gets choppy. everyone is aware, we haven't had a 5% pull back to a close in a long time since last september
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really if you believe that you're due for a little bit of payback after such a streak, then it probably should come within the next couple of months. but markets don't tend to operate like that. they give you more than you deserve upfront and then shock you with the pay back on the backside when you're not looking for it. >> sixth record closing high for the s&p in a row, it's been a streak led by different sectors in this rotation how does the market look to you? >> so an amaizing first half of the year, very, very risk on, good start to the second half. i think last year the story was about hope, it was about multiexpansion, the first half of this year has been about reality, actually meeting and exceeding that hope, so it's been all about the earnings catch up i think now we're entering definitely a new phase where it's going to be about looking post pandemic fog, thinking about normalization.
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so for us, for equities, it's a continued grind higher with the normal volatility that might discuss and in terms of style it becomes less value growth and becomes more about quality thinking about the sustainability of earnings >> do those micron, walgreens moves concern you? >> you know i call earning season silly season for sure but it's interesting, first and foremost, micron was up 56% from last year and walgreens up 48% just from october. so big moves i think -- but i do think that the cyclical and value names they've already pulled back a little bit i like the risk/reward i like it in energy, i like it in financials and i really like it in industrials as well. i think they're going to be the
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leaders in terms of earnings growth i think we're going to do 40% earnings growth this year alone. we're not going to do 40% next year but we're not going back 7 to 10, right we're probably going to continue to see double digits earning growth better visibility, tons of liquidity. even if the fed tapers you're not going to have higher rates even probably this time next year so i think you want to be opportunistic, buy on the dips i'm looking at opportunities all over the place for sure. >> on all of that, we are getting breaking news on the u.s. economy, out of the international monetary fund releasing its annual report card, article 4 on the u.s. economy, they see u.s. growth at 7% this year, the fastest growth they say in a generation it's the fastest growth since the early 1980s. they're upgrading their forecast for growth in 2020, imf saying they expect that growth to be 5%
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they see inflation trends obscured by transitory movements. in jay powells camp there. they support changes proposed in the tax and spending plans by the biden administration, so they are onboard with the infrastructure plan and the family plan. they also issue calls on the fed, the fed policy would likely need to start rising in late 2022 or early 2023 if the forecasts are correct and they see tapering beginning in the first half of 2022 as far as the risks for the economic outlook, imf says the main risk currently is the pandemic, which is notable because the investors are saying that could be inflation or fiscal and monetary policy now we'll talk about this later this hour we have a first on cnbc interview with the head of the imbf, kristalina georgieva she spoke earlier with secretary yellen about these
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recommendations and then she's going to join cnbc to talk about some of it notable on the fed in particular considering what you said about the second half outlook tapering, early 2022, rates rise late 2022 or early 2023. what are the market implications here >> it's pretty much in line with expectations by the way, that's a great interview that you have. i can't wait to watch it it's very much in line even the gdp numbers of 7% this year, 5% next year that's exactly what consensus is and you know where i differ. i differ on the inflation side i don't know how you increase wages substantially and then take that back i think they're stickier than people are saying and i think it's transitory on the commodity side, certain commodities it's going to take longer let's listen to what some of the companies have to say about the supply chain, including micron last night we're getting data points that it's going to take longer you can say it's transitory but
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if it lasts a year, year and a half that's a big deal we have to watch that, but we have to watch your interview, that's going to be amazing. >> thank you. >> thank you. >> we're excited. >> lots of plug. we don't pay her for that. >> the expected growth in the u.s. in april to rise 4.6%, this is 7%. >> looking forward to that interview. are you putting more money to work overseas now or focused on u.s. equities? >> i'm interested listening to the imf forecast about this 5% growth forecast for next year. that's quite a lot we're more in the feds camp of 3, 3.5 still above potential don't get me wrong still a good backdrop for risk but not the potential that the imf seems to be pencilling in. which leads me to the point about international. that's where we still have significantly above potential growth you saw the baton handed off to
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europe and european markets in the second quarter we think japan is next, followed by emerging markets excludeing north asia still in the phase overseas of reality meeting hope which is a very strong phase for potential growth and returns overseas. plus the average investor we speak to has a deep underweight to international stocks built up over a decade. there's a lot of work bringing in a 21% to 35%. >> meanwhile glaze donut maker krispy kreme returning to the public market on the nasdaq today, sharing movingdown, but ending the day up more than 23.3%. the company was taken private in 2016 my biggest question is whether listing the nasdaq means they'll have more stores again in new york when i moved here i assumed they'd be everywhere, it's not. >> no, it's a dunk n donuts
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down. >> it's more in the south than the west. >> they should be everywhere let's bring in brett levy. thanks for joining us. what was your take on the valuation of this where it stands today, the i.p.o. price and where it stands today? >> thanks for having me on i guess the best way to think about the valuation is as the great larry david said a good compromise is when both parties are dissatisfied if you think about what we had here, an initial pricing range of 21 to 24, an investment community pushing down to 17, and as it rallied back up we found the buyers and the sellers compromised to a point where we got back to where the initial pricing range was. from an valuation stand point, the market spoke as you look at it compared to its peers out there, part of that depends on how well the story can be executed and what
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the company can generate and whether or not the investors feel that it's comparable to some of the other major players out in space. >> on that question of exe execution, what are the expansion opportunities? >> when you think about where this company was historically as a pure play restaurant company with a franchise model, they reversed that and have taken it a step further they bought back a number of their franchisees, they have about 85% of their domestic business controlled by the company. they 'approaching it with a hub and spoke approach so they have these these stores where they produce the donuts, factories, they'll ship it to their ancillary stores, secondary stores and you talked about new york city and the lack of krispy kreme stores but if you walk into a walgreens you'll see the
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availability to buy donuts on a daily basis. they're looking to grow from 9,000 units to 15,000 units globally. >> it's interesting because if you look at a lot of the restaurant companies, a lot of their competitors, it's the other way. doesn't wall street like the asset light model? wasn't it about selling off the franchises and just, you know, owning the brand and running the company? wasn't that what was embraced? why is krispy kreme going the other way and is that a problem for wall street? >> i think that's part of the execution risk you bring into play as well as the company talks about an asset light model limited cap x as they build this hub and spoke. they're taking it from a different approach as i said, they have a fresh -- they have a fresh business that they're shipping out to in the retail marketplace, that will help them expand out using their existing infrastructure for production but other points of distribution
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there is that risk associated with a limited service player, that is more owned than not owned. we've seen many of the major qsr players pushing towards that franchise model where you put it in the hands of the operators and let them assess what the best way to spend their capital and time is. >> brett, thank you for joining us by the way, wilfred, they own insome knee yak cookies. >> i read about them are they good? one of your go to? >> no. >> so you're pushing me to what you don't like. >> i'm not a cookie person >> you're not a huge cookie fan. >> you said i'm not a huge cookie. >> cookie person. >> okay. next danny meyer on the health of the restaurant industry, whether the labor
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shortage is showing any signs of easing plus our quarterly stock report, which sectors will be a winning trade in the second half of the year. 67% say financials tech and energy tied with 55%. coming up rbc ahead of strategies weighs in on her pick for the second half. we're back in just two minutes for the "closing bell. uno, dos, tres, cuatro! [sfx]: typing [music starts]
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♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ welcome back last hour we spoke exclusively with commerce secretary gina raimondo who gave a candid take on the employment picture. listen to what she said. >> the real issue, i think, is that a lot of the jobs that folks lost are the kinds of jobs, let's say, for example, in retail or services industries, that are -- might not be coming back, or might not be coming back in the same numbers so what that means is we have to lean into apprenticeships and
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job training and upscaling. >> danny meyer joins us for an exclusive interview, he's ceo of the hospitality group, welcome back to the show danny, good to see you. >> thank you, sara, good to see you. >> does that apply to the restaurant sector, what the commerce secretary said in i was sort of surprised that she said we're not going to see those kind of services jobs come back in the same number. >> i don't see it that way at all. as a matter of fact, we would love to be hiring as many people as we possibly can right now this is probably the single best time that anybody could imagine a career in hospitality. so i'm not sure what she's speaking about, perhaps its service industry but not applicable to the restaurant industry >> i wonder how much the bump up in unemployment benefits is impacting your industry. rbc took a look and found that the average weekly earnings in leisure and hospitality are $400
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a week but if you take unemployment benefits plus that $300 top up it means that people in your industry are earning 25% more to not work do you see that as a problem >> it probably is one of the ingredients and the challenges we're having this minute i don't think it's the whole thing at all here's how we're looking at things right now we believe there's going to be a big, big bump in reemployment, in terms of the labor market matching the demand we have to dine out but probably not until the end of the summer. i'll tell you why we think that. if you take our city, new york, it doesn't apply everywhere, but in new york city, once we get theatres back, not only are we going to have a lot more tourists coming to the city but the number of freelance employees who populate the
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theatre industry who moved out of the city in covid is going to be a major factor. it's now been established that schools will reopen. that sends a signal to people they can go back to work and not necessarily have to spend all day worried about who's looking after their kids that's a big thing secondly when people dodo go back to work that's going to create more jobs and more job openings for the ancillary businesses that depend upon foot traffic during the day, breakfast, lunch, dinner, who's going to buy the donuts if you're sitting at home we think september is going to be a big deal. in september, that $300 a week unemployment insurance ends. so all of those factors together we think they're going to be a big deal the other thing i'll say quickly is this. this is a magnificent moment for innovation and we're in an uncomfortable period all of us, whether we are
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professionals, businesses or members of a family have been in a crouch position for the last 14, 15 months. our knees are tired. now all of a sudden we're all leaping forward at the same time and it's just not going to be pretty for a couple of months but you're seeing people who are now saying, where do i want my life to be in a way they never had a chance to do before. what do i want my job to be? can we work the same hours we used to work what's coming of this i think is going to be not only an amazing human moment but probably some of the best innovations that any industry, certainly our industry, we're seeing at lot of that right now. >> let's talk about that as it relates to your overall labor needs. we hear you loud and clear in the short term you'd like to hire more and believe you will in the next couple months but what will 2023, 2022 hold
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relative to 2019 in terms of your labor needs to restaurants. does tech innovation help reduce that or not really is that only on restaurant-type of delivery stuff? >> i think you're right, restaurant delivery online ordering all depends on technology but i also think that technology is a great thing to advance the hospitality experience for example, when you tgo to a restaurant everything from how the count was sourced, food was sourced, inventoried, how you made your reservations, paid your bill, got your coat check back -- obviously this is not the weather to be talking about coats in right now but everything that tech can do is not strictly about reducing labor. mostly what tech is about is advancing high touch >> so danny, the news today is that the delta variant is spreading rapidly in this country. you're having conversations at
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top level with policy makers on this reopening commission in new york do you think there is a possibility or a probability that we could go back to restrictions on things like dining if we continue to see this spread and don't see vaccinations get to high enough levels where we can prevent it >> you're raising the most important point. all i can say is, anybody who doesn't get a vaccination who physically can get a vaccination is putting themselves at a greater risk today because of that but the vaccination program is actually doing quite well. it is the reason that in new york city we no longer have social distancing requirements we are in a position right now where if you've been vaccinated, you don't need to wear a mask at all in a restaurant. and it's just been a great thing. i want to bring up a different point though the restaurant industry is not only feeling positively because of vaccinations being on the
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increase, but we also had been feeling incredibly positive because congress passed the restaurants revitalizations act. what that did, at least until the last 24 hours, when restauranteurs across the country received a very, very bleak notice from the sba, 100,000 small businesses and independent restaurants learned that they were able to get funding that was going to really provide the clarity and optimism to go forward with all of their hiring and growth plans. but we just received a letter, the entire industry did, another 200,000 restaurants have been told that now the sba is out of funding for the restaurant revitalization act so we need congress to step up and complete this work, which has pro vied the absolute most positive forward momentum without which there's going to be a lot of restaurants in the country that are left out high
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and dry. >> wanted to ask, dan inny, abo the food delivery apps clearly they've been a god send for restaurants over the course of the last year, over the course of the pandemic, allowing them to have demand in a way they may otherwise might not have done. what about the next couple years for a chain like shake shack that has scale to do things on their own. will you fight back to pay lower margin fees to these apps in the future or at the moment do you think the price, the service is fair enough? >> i think every restaurant company is doing the best job they can to negotiate. there's not one fee across the board for all businesses i think most of the delivery companies understand that you have to have a sliding scale, generally based on the amount of revenue that is created from a given restaurant business. shake shack has an app you can order food directly delivered
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from the shake shack app without ever having to migrate out of it that's one of the ways that shake shack is really trying to understand as much as possible about all customers, what their preferences are, where they live, when they tend to order, and it's all about increasing the hospitality experience. >> danny, always good to see you. thanks so much. >> thank you both very much. >> we'll see you again soon. let's get to mike now for a closer look at the job market. mike >> if this is another in the occasional series of charts that covid broke. this is the year over year in change in corporate layoff annou announ announcements. last year we got to 1,500 far and away above what we saw now we've seen it plunge it's down 88% year over year so essentially down 88% from up 15
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00%. so still a lot, but record level of decline no companies are still in reduction mode we know about unfilled openings and a tighter job market look as we wait for tomorrow's official job numbers, the stocks have had a very good run except for corn ferry they have flattened out. we have to see if tomorrow gives us any reason to think we're kicking in another gear of job filling or if we're still in the mismatched zone where it's tough to get confidence we're getting back quickly to what we had pre-covid. energy the best performing sector today continuing the first half rally up next, whether the sector can keep outperforming plus imf managing director, kristalina georgieva on how president biden's proposals could impact economic growth a lot more to come on "closing
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joining us now lori calvasino thanks for joining us. before we get into energy specifically, you believe multiples are going to get compressed across broader equity markets over the next six to 12 months >> we're not putting it so much on that time frame we moved more to the flattening camp as opposed to the expansion camps we're assuming 20 times as opposed to 21. we think the key issue is the fed. we looked at the history around rate hikes if you look at a forward pe multiple, and you go back and replicate that through time during hiking periods you tend to see choppiness and flattening out. now the question is, what's been going on in the markets recently we've seen churn, reaction to the fed meeting and we think investors are thinking about how to bake in fed hikes and
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tapering into in general into markets ahead of time. we think the historical playbook could get pulled forward but bottom line we don't feel comfortable thinking you're gettingany expansion this year >> relatively speaking they're on a lower multiple than the market. >> i think it's a separate issue but i think investors are valuation sensitive today and energy, despite the fact it's had a fantastic run this year still looks like one of the most undervalued sectors in the market when you look at it relative to the broader stephen paddock -- s&p 500 you add on top of that that we had really powerful upward revision trends in the energy space recently you have chief valuations, strong earnings revisions it's a recipe for continued success in the near term. >> what are you seeing in terms of small caps versus large caps from your clients and some of the portfolios you analyze and
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what's the takeaway for investors? >> i'll say generally if i think back over the last couple months i've been surprised that some of my meetings i'll be talking to a large cap growth pm for example and they'll ask about small caps and they're people who never asked about small caps in the history of me knowing them so there's been a little bit more of an interest there than we've seen in the past when we look at small caps we think they capture the conundrum that investors find themselves today, they're cheap on a relative basis as long as gdp is running hot, small caps should out perform. same when ims is rising. so as long as the economic data cooperates, the valuation runway is there but let's go back to the fed we typically do see major peaks in small cap performance relative toy large caps when the fed is tape erring or hiking
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they cool the economy, bring it down closer to the long-term average and that coincides with a major peak in small cap performance. the timing is uncertain, i think you can enjoy the party a little bit longer but i do understand why some people are looking out to 2023 and saying we might want to take some profits here. >> lori, thank you for your thoughts always good to talk to you rbc capital markets. >> thanks for having me. still ahead, the count down is on till tomorrow's release of the important june job's report. plus kristalina georgieva on when she thinks the fed should start tapering, making headlines now in her news conference talking about the report card in the u.s. >> and mike as well. >> mike getting in the shot. >> he'll join us too he was teasing himself he'll make a return later in the show
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here on wall street. time for cnbc news update. >> thanks from the news on cnbc, what's happening not guilty that's the plea for lawyers from the trump organization and the cfo allen weisselberg. in essence, the allegation here, they cheated new york out of taxes by paying top execs off the books. prosecutors allege the illegal compensation topped $1.7 million form every president trump was not charged but he says the indictments are politically motivated. in canada wildfires nearly wiping out a town that set temperature records for the entire country including a 121 degree high on tuesday an evacuation order still in effect a local official estimates 90% of the village of litton in
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british columbia has burned. getting wealth yier during e pandemic millions were able to pay off debt and squirrel away savings an economic downturn like no other complicating plans to keep the recovery going the winners and losers tonight on the news, 7:00 eastern on cnbc wolf, back to you. >> shep, thanks you so much. still ahead, auto sales revving higher -- >> not will. >> no, that's right. >> anyway, auto sales and much more coming up after this break
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♪ ♪ the imf just releasing its annual report on the u.s. economy and it's very opt mimisi calling it a remarkable recovery from the pandemic, projecting gdp growth 7% this year, the fastest in a generation and 4.9% next year. joining us now is managing director of the imf, kristalina georgieva great to have you back on the show. welcome. >> thank you for having me on the show, sarah. >> clearly you are optimistic about the growth of the u.s. economy. does this factor in the biden plans, infrastructure and families, which you seem to endorse, does that add to
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growth >> the projections for 7% growth is on the strength of what has already been done as policy support for the u.s. economy and on the strength of the vaccinations that have opened up the opportunity for consumers to consume and for producers to step up. when we look into the next years, yes, we do factor the two plans, the jobs and the families plans that the administration is putting forward. between now and '24, we expect that they would add cumulatively 5.25% points to u.s. growth. but most importantly, because they concentrate on improvements in physical infrastructure and in human capital, we expect lift of productivity in u.s. and a
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continuous boost to u.s. growth by 1% point until the end of the decade so all in this all, good news in the short term, but also we project a positive development for u.s. competitiveness, jobs and growth, and with attention to inequality in the united states. >> so the other big question in the u.s. is inflation right now sounds like you're siding with fed share powell using the word transitory in which report my question to you is what is transitory housing prices have been rising in the country for months. the semiconductor shortages are set to last for years. so at what point does it become more concerning? >> we are concerned about inflation this year, because of this incredible boost of demand
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while we still have supply side interruptions. and this supply side interruptions are likely to continue and let's remember, they're also driven by what is happening in the rest of the world. as long as the u.s. economy is booming, but held by slow vaccinations other countries are not, we may still witness some of this supply disruptions this being said, the evidence so far is clear that while prices may be jumping, we put it in the order of up to 4% this year. by the end of '22, we anticipate inflation to go down to around 2.5 percentage points. we are emphasizing in our report
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2 points, one be watchful and thankfully chair powell, the fed, are very watchful they're very careful in monitoring what is happening and two, be sure to communicate clearly what is the guidance with regard to both inflation and inflation expectations and i want to stress that we are encouraged to see more attention being paid to systemic issues like housing in the proposed plans because there is an intention to boost, especially for low income housing, to boost the supply to ease this pressure on pricing >> so having said all that you do expect tapering to begin in early 2022 according to the report and rate hikes to begin end of 2022 or early 2023. >> yes >> how is that process going to look is that going to go smoothly or
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is that the end of the expansion because it'll tighten financial conditions and cause a market dow downturn >> let's be fair that this is driven by good news, the economy is booming people are out there shopping. and that is creating an environment in which there is pressure -- upward pressure on prices now, we do expect this to be an orderly and well defined process. the fed so far applying the new framework has done a really good job in communicating to the public how they see the impact of this high growth increase in prices on monetary policy. we anticipate the sequencing
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that we just described that we see tapering down sometimes early next year. we would see interest rates eventually going to more normal place by the end of next year, early 2023 and what we are particularly watchful, and i want to put this to your audience to be mindful of, is the spillover for the rest of the world. now we are enjoying positive spillovers, strong growth in the united states, transmits into better performance in other economies, especially those integrating with the u.s. economy. but, if we had this divergent recovery, sara, that we are observing now with advanced economies, vaccinating and pulling out of the pandemic and many emerging markets, devedev developing countries falling
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behind we might be in a situation in which interest rates in u.s. may normalize, and that could turn into a headache for countries with high level, especially of dollar denominated debt so that is also to watch >> i wanted to ask as well about your forecast for when we might see other major central banks like the bank of england and ecp start to see high grades they might not be as positive or early economic rebound position, but i guess they're also not taking such a backward looking approach to inflation. and they still have a slightly more pro active approach to prevent it arriving in the first place. could we see the likes of the bank of england or the ecb hike before the fed >> we don't see it coming with the same speed as we see a normalization of monetary policy
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in the united states for obvious reasons. they are still somewhat behind in vaccinations and in the recovery and, therefore, the message is very carefully crafted, do not withdrawal support prematurely but, of course, as economies return to growth, there would be a careful recalibration of both fiscal and monetary policy and as that is the case, again, i want to stress we have to be sure that we don't have a two-track recovery that turns into a pressure on emerging markets resulting from normalization in -- of monetary policy in particular of advanced economies. >> so there's a number of policy recommendations in this report everything from you'd like to see the tariffs roll back that
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this administration is continuing from the last to a gas tax. there was one recommendation based on the imf advice and the research you have done to the biden administration i know you had a conversation with secretary yellen earlier today on this. what would it be what's the main thing that they're not doing that they should >> what we see them doing really well is to get tax policies and spending policies aligned. and we welcome that very much. it is in line with everything we have been recommending over the years, more progress in taxation and more investment in physical and human capital. where the attention has been in this conversation with secretary -- especially with secretary yellen is to make sure that there is even more focus on prioritizing spending well to
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achieve the highest possible impact and i'm very pleased to say that this is exactly what the administration is aiming to do make sure that every dollar spent brings the highest possible benefit to the economy and to people. >> sort of sounds like jamie diamond what he was saying tell us how ever dollar spent if you're going to raise raise tax. kristalina jugeorgieva, thank yu for joining us with the big number i want to underline, she said, 5.25 percentage points of growth, that's how much they analyzed the biden policies infrastructure in the families act would add to the u.s. between now and 2024 i haven't heard a number on that. >> and very optimistic in general. which was good to hear another month, another huge surge in auto sales. up next, we'll break down the numbers and the record prices
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♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. automakers reporting june and second quarter auto sales numbers today. phil lebeau here with those details for us hey, phil. >> i'll start with this report
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with the stat of the day, one you probably don't hear very often, haven't heard it since 1998 look at shares of toyota why are we starting with toyota? toyota in the second quarter was the top selling automaker in the u.s., outselling general motors at first time since 1998 that gm has not been number one in quarterly sales. how did general motors do? its sales increased 39.7%. roughly in line with expectations stellantis, increase of 32%. honda outsold stellantis, fiat chrysler that happened in the second quarter. the other results from hyundai and vw in june, you saw a couple of things happening here, first of all, extremely low inventory that is the story going into the second half of the year. transaction prices topping $40,000, look, you're not getting a deal if you go to a dealership now trucks and suvs remain in demand in terms of the total pace of sales, we're waiting on a final number expectation is that it is going to come in between 15.7 and 16
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million vehicles don't forget, tomorrow, we get ford, q2 deliveries, sales, i should say, and in terms of deliveries, the expectation is that that is when we will hear from tesla and the expectation for tesla is to deliver that it did deliver a little over 200,000 vehicles guys, back to you. >> auto stocks, 17% off the recent highs phil lebeau, thank you. still ahead, we're counting down to the all important june jobs report. key figure every investor needs to watch next.
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looking ahead, we got the june jobs report on deck economists are estimating an increase of 706,000 jobs, compared to 559,000 in may that number due out tomorrow at 8:30 a.m. eastern time really looking forward to it and, good number, big beat, is that what the market would want or slight beat >> you know, i think the market does want confirmation that things remain on course. you have to tell me how the bond mark set going to respond, though that's the issue we're very much at a kind of make or break level here when it comes to yields, are we going to -- you know, has this been a sideways plateau and the next
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move is higher i think the one comfort is probably that one month's number is not going to feed very directly into whatever the fed is thinking. it might feed directly into what the bond traders think the fed is going to start to think that's always a wild card. >> it has been hard to predict lately you have a bunch of states, half of them, not extending the extra bump up in unemployment benefits, but a lot of states doing that and we don't know what kind of impact that's having and then the child care concerns are still front and center, you know we're not in school period yet and people are concerned and the variant is spreading, 10% rise in cases. >> right. >> according to the cdc for covid. >> which is why i thought that summertime economic data actually had lowerstakes attached to it because almost everybody has a way to explain them away in september, in theory, it should be rectified. i don't know exactly if we're hinging -- we should have some catch-up, even in the revisions or in this number, we should have some catch-up. >> keeping on the dollar as
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well, continuing its march, its bounce. >> absolutely. >> it has been a few days in a row, though. felt a little marchy april highs. on the dollar. that's going to do it for us on "closing bell. have a good evening, everyone. "fast money" begins -- >> ten seconds early >> right now it would be five now live from the nasdaq market site overlooking new york city's times square this is "fast money. i'm melissa lee. mike khouw in the house, dan nathan will join us in moments tomorrow on "fast," major buzz kill for one name in the retail space today. some traders aren't quite giving up hope on it yet. we'll find out what it is and why they're so bullish and turbulence ahead, americans getting ready to take fight for the long holiday weekend top analyst hunter kay says airlines will not be able to handle the surge in demand we'll get the outlook for the industry this year a special edition of "fast money" coming up at 6:00 p.m., we're answering all your burning trading questions, so if you've got them, tweet us at cnbc "fast mone
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