it is 5:00 a.m. at cnbc global headquarters. this is your top five at 5:00. will it be a tuesday turn around big parts of the market and your money get hit. the biggest day since october. the delta variant spreading. don't be surprised as former hhs official is here to tell you where this is likely heading big blue flexing its might ibm with the strongest sales growth in years sending shares

soaring. countdown to liftoff jeff bezos hours away from become being the latest billionaire to head to the heavens. and the most important part of the global supply chain soaring in prices. the ceo of one of america's biggest ports breaking down what that means to you. it is all happening on this tuesday, july 20th this is "worldwide exchange. good morning, good afternoon or good evening. welcome from where every in the world you may be watching. i'm brian sullivan good tuesday morning let's get to the markets and your money after yesterday's big haircut. stock futures are posting a turn around right now not nearly to the level of the drop off yesterday dow futures up 226

all this after monday's steep selloff. dow fell 725 points. roughly 2% that is its worst daily performance since october 28th s&p and nasdaq shedding 1.5% and 1% respectively. context, always, is key. even after the drop, the s&p 500 is just about 3% below the record high it hit last week it is still up 13% year to date. something to remember. in bonds, the 10-year yield continues to be the big story. down again right now 1.20%. remember, guggenheim's scott minerd with the call here on this show. looking very, very smart right now. we have to look at oil like everything else on monday, getting crushed.

that selloff pushing prices to the lowest level in two months down multiple percent. oil stocks got hammered. right now, not much of a rebound. $66.50 s&p oil and gas etf was down 4% in yesterday's session cold comfort to those who invested in it a month ago let's see how the world reacted to the monday session. negative session in asia not nearly as bad as what we had here we were down a lot of red on the screen not nearly to the level we had here taking a look at the early trade in the european markets. we are seeing with the futures, a bit of a rebound and a bit of a pop. again, not nearly as much as what happened here yesterday still we are all in the green. it is all about your money and the markets this tuesday

morning. let's try to make sense of it all and bring in michael sheldon at rdm financial group michael, good to have you back on what do you think happened yesterday? what are you telling your clients right now? >> yesterday was a tough day in the markets. no two ways about it today may turn out to be turn around tuesday we remain constructive with the consumer and business spending it is important to keep things in perspective investors have been trained to buy the dips each time the s&p 500 flirted with the 50-day moving average since october of last year, that 50-day moving average held you are seeing buyers come back into the market once again today. there are concerns out there which we are watching. the delta variant wasn't on our radar coming into this year. obviously we were getting

through the prior covid. you also have potential for higher inflation we don't know how long that will last the fed is about to remove some of its policy an accommodation and investors are wondering about peak profits and peak growths. the markets are climbing the proverbial wall of worry expansions last a matter of years as opposed to months or quarters >> yeah, listen. first things first we care about everybody's health and everybody's safety that is why we are watching the delta variant and which ever variant will come next because there likely will be one you tie covid to cnbc and the markets and the economy and it is lockdowns and earnings growth and what happens to the economies. bill de blasio of new york city, said we will not shutdown. no masks l.a. county going in a different

way. are you able to gauge, michael, what may likely happen to the economy and, thus, corporate earnings and the equity markets? is there visibility right now? >> it is important to keep an eye on corporate profits taking a step back, we think we're in a different place than early 2020 we think it is very unlikely that the overall economy will shutdown the way it did. the mask mandate seems like it is starting to come back in certain areas. i think overall sentiment is against closing down the overall economy. one of the questions that has come up is the worry about peak gdp growth and peak profits. it is important to point out that when we reach the peak in year over year gdp and corporate profits, that doesn't mean the

economy reach its peak economic expansions last a number of years. consumers are concerned about the recent issues, but they need to keep an eye on the big picture. ultimately what we are thinking is this is a handoff from monetary policy and fiscal stimulus to continued job growth along with consumer spending and pick up in business spending over the next several quarters >> any parts of the market -- assuming -- a big assumption, but michael, may be a dangerous growth earnings continue to go the way it goes, any parts of the market that look more attractive to you? >> well, i think importantly, our thinking is you want to have a barbell. we have the transition from early cycle to mid cycle the reopening trade has given back a lot you have seen double digit or corrections in parts of the

market with transportation and energy stocks. basic materials. as you transition to mid cycle, you want more of a barbell it is not all about technology as it was the past several years. you want more balance in your portfolios and move up in quality. it is a little too early to be defensive, though. >> michael sheldon, rdm financial with a bullish view long term. the dow is up 30%, remember, since the last big down day on october 28th something we have to always remember climbing that wall of worry. michael, thank you very much appreciate you coming on there are many things happening outside the markets and your money you're welcome let's hit the top stories with kristina partsinevelos with some of those >> good morning, brian the state department and cdc urging americans to avoid traveling to the uk. this is amid concerns over the delta variant.

the agencies are issuing level 4 warnings the highest. the same day england lifted remaining covid restrictions infections are high with 316,000 cases reported over the last seven days in the uk that is higher than we previously saw the united states and germany expected to announce a deal over nord stream 2 natural gas pipeline the deal on the $11 billion pipeline is closed after president biden and german chancellor angela merkel failed to strike a deal last week the deal will include commitments by both sides to ensure increased commitments to offset any negative fallout from the new pipeline. and treasury secretary here in the united states, janet yellen, says the united states should move quickly on stablecoin this is on the meeting of the

top advisers with the president and the guidance is cryptos that attempt to peg value to a conventional currency. that is supposed to come within the next few months, brian this is something that jay powell has mentioned as of late that we need a regulatory oversight on the stablecoins as they gain in popularity. >> the crypto, kristina, has been hit hard. bitcoin below 30,000 kristina, see you in a few minutes. thank you very much. there is so much left to do this morning when we come back, your morning big money movers including ppg and what shares of the paint and coatings maker is seeing red down nearly 6% they got slammed monday. also getting hit goat index get out and travel

the companies and stocks feeling the covid crunch and back to the office well, maybe not so fast. the one massive company suddenly rethinking its plans to bring you back to your desk. we have a lot to do. dow futures up 202 we are back right after this

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three big stock stories of the morning. stock number one ibm. international business machines. revenue rising for the second straight quarter beating estimates. however, profit fell it still managed to top forecasts. recovery and spending by customers with strong growth in the cloud and consulting business ibm up nearly 4% stock number two ubs. union bank of switzerland. net profit jumping 63% in the second quarter that blue pass on estimates. helping the largest worth manager. for all those wealth any clients. stock number three ppg. shares getting hit hard. down 6%. earnings whipping by a wide margin blame the supply chain ppg says problems getting materials pushing prices higher.

ppg expects those higher costs to persist this quarter. if you are wondering where the company's name came from, ppg founded as the pittsburgh plate glass company. now you know on deck, general motors looking to give its lineup of electric cars a big jolt after the warning last week don't charge the bolt inside or without you watchwatching. we'll tell you what they are doing now. dow futures are rising we're back after this. >> announcer: today's big number 1,250% that was the jump in dogecoin trading volumes during the second quarter of the year according to date by coinbase. the average of $995 million per day during the period. up from $74 million per day in thfit arr.e rsqute worth, he's the owner of petsworth vetworld.

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welcome back do you remember, loyal viewer, back in february when we brought you the show live from the port of charleston, south carolina? we were down there talking about sky high shipping container rates and why there was a shortage of the big metal boxes that run the world's supply chain. since then, it has gotten worse. check this out since we were down to queen city, rates have kept going

higher in fact, they have nearly doubled since then according to the freight index the cost to ship a 40-foot container is now $9,000 for the busiest ports. how much higher can these record markets go let's bring in jim newsome long-time veteran of the global shipping container ports the spot rates i need a box you charter it and contract rates are lower. i always thought we would get that "sports illustrated" moment from february. if i'm there, maybe that is the peak that is not the case what are you seeing in the global shipping market right now? >> good morning, brian it is certainly not the case contract rates are also significantly higher more importantly, if you don't have a pre-existing shipping

relationship with a carrier, it is unlikely you get space on ships. ships are absolutely full. we are imparting 2.5 million per month. that is the benchmark we have to watch for volume above that and we have more pressure in the u.s. global supply chain >> you know, the thing we talked about down to the port facility is how the market is so hot that instead of a container coming off a ship, going around america and picking up stuff and going back to asia or europe, they are shipping back the containers empty to get back in line. is that still the case if newsome sullivan corporation wanted to sell could we >> there are rates driving that.

what we are noticing is the pace of delivery and movement of containers is slowing down this time last year we had 27,000 containers of all tiypes on our terminal. we are up to 40,000. the movement is slowing down we have lots of empties and lots of exports there have been missed sailings because of scheduled unreli unreliability. it is not as easy to ship empty containers back as you once might have thought >> this all goes to the inflation story. that's one of the reasons it is so important pretty much everything we buy is going to be coming from china or some other place do you see any sign of this supply chain inflation, for lack of a better term, abating? >> most people -- i don't think anybody knows. most people we talk to believe this situation is going to last through chinese new year next

year so january of 2022 then we have to see what happens to people ship more for services and cruises and vacations and buying less. how many flat screen tvs do you need at home there is a tremendous boom for furnishings at home continues. certainly through the fall and next year. we see a constant situation here >> yeah, the other part of the ply supply chain is the truck drivers. i love coming to your facility it is cool to watch the harmony of the boxes on the ships, on the trucks, and out the door are you able -- not you, your clients or customers able to find truck drivers we talked about gasoline shortages in america right now not because there's no gasoline, but for whatever reason, insert

your own reason here, there are fewer drivers to take the stuff from point a to point b. >> trucking is not a homogenius industry it is pretty much maxed out. a lot of the turn times on terminals is increasing. nobody added staff during the pandemic port capacity is rigid it is hard to grow 30% or 40% and not have impact here or there. i would say it is a significant issue if we don't find a way to attract more drivers to container trucking that could put a lid on container growth in the country. that is the biggest threat going forward. >> wow bottom line, jim, from your perch, which is high, executive at global shipping firm for a long time. you say this will go on for some time >> we think it will. at least for the next year

what people don't realize, port capacity is rigid. there is not a lot of newp port capacity being built built from 2009. we have do what we have with bigger ships that reduces berth capacity in ter terminals. we have to find more infrastructure hopefully this infrastructure plan will be responsive to that. >> by the way, i did not congratulate you on the opening of the leratherman terminal. congrats on the first newp port terminal opened in more than a decade congrats on that >> thank you, brian. appreciate it. >> $9,000 for a box. wow. let's take a step outside the morning markets and check on the other headlines, including why one taylor swift just keeps

on making bank it may or may not have something to do with phillip mena in new york with that and more. >> boy do i wish, brian. good morning one week from today, the house will launch its investigation into the deadly insurrection at the capitol on january 6th a committee will dive into the root causes of the siege and recommend how to prevent future attacks. house speaker nancy pelosi announced her appointees and kevin mccarthy announced his and rodney davis and jim jordan and kelly armstrong and troy nehls from texas nancy pelosi has to sign on to the appointments before the first hearing. days before the olympics opening ceremony, two members of the u.s. gymnastics team are in quarantine after one tested positive for covid both are alternates on the team

and learned of the status after arriving in tokyo. officials are relies on strict protocols for athletes. and billboard released the top money makers of 2020 number five, bill y eilish earne 14.7 mi$14.7 million. theagles with $16.3 million. celine dion with $17.5 million and then post malone and then taylor swift topping the list at $23.8 million. the eagles, brian, still cashing in over $16 million last year after decades? that is impressive i didn't see that coming >> i get swift at one, no doubt. the eagles

a surprise they had the greatest hits i or greatest hits ii post malone coming in at number two is a surprise. i'm old. celine diron >> post malone has a lot of hits out. celine dion, too >> i'm not saying no look at the mix. it is the eagles, who are like, twice my age, which is old celine dion. post malone. what a mix >> eclectic. >> quoting taylor swift. look what you made me do phillip mena no bad blood here. >> never >> never, ever, ever do that again. thank you. all right. up next, covid concerns or just

big action in the options market what exactly happened yesterday in the markets we will make you smarter jeff kilburg and chris murphy are here with us next. the dow futures are up we are back right after this flowers are fighters. that's why the alzheimer's association walk to end alzheimer's is full of them. because flowers find a way to break through. just like we will. join the fight at alz.org/walk

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with covid concerns. those concerns around the delta variant grow are you surprised this is happening? chris meekins is here to talk about it. the billionaire space race jeff bezos and his blue origin rocket prepare to head to the he heavens. all on this tuesday, july 20th this is "worldwide exchange. welcome or welcome back. good tuesday morning 5:31 on the east coast here is how your money and investments look halfway through the 5:00 hour. different story from yesterday after the steep selloff. dow futures down 350 i said i had no idea what was

going on the selling continued. down at 900 at one point ended down at 725. right now, we are up, not nearly to the level we were down yesterday. dow futures up 200 right now in bonds, the bond yield story that continues to be a story as we talked about it with guggenheim's scott minerd. that call is looking super smart. bond yields down 1.19% wow. with the markets coming down and new delta variant concerns going up, we have to talk about the goat index the get out and travel index it took a huge hit on the covid concerns delta, american, all down 4% united airlines, down more than that southwest, jetblue, all down

a bit of a bounceback right now. the airline stocks are up 1% to 2% right now not much better for the cruising companies yesterday. kind of a similar story. all coming back not quite to the level they dropped yesterday they are up still like norwegian down 5% on monday. up 2.5%. a bit of a clawback. not to the level they were yesterday, the bulls, clearly, in charge sellers far out numbering buyers of course, buyers have had the upper hand over the past year. both sides, if you sat around the table at dinner, could argue they had a point what are both of those sides let us quickly run through each main case. then get our friend jeff kilburg's take here is what the bears would likely turn to market structure something we will hit on in a

few minutes. pay attention. you have options bets to the down side that are hanging out there. you got inflation fears. we hit the container story you got new lockdown concerns. los angeles county, reinstituting the mask mandate even if they have people vaccinated telling people to wear a mask indoors. of course, the rising china tension which may be the biggest story in the world strong aurguments the bulls will come in and say you got it wrong here is the situation. you got earnings growth still strong lockdowns may change that, but right now they're not. the u.s. economy, if you can find workers, still booming in massive parts of america we can manage the delta variant. the good news is the vaccines appear to be highly effective against hospitalizations and severe outcomes even on the

variants you have tons of cash on the sidelines. can we throw the wall back up? the federal reserve. at the end of the day, if this is all about central bank help, if the headlines get worse, the federal reserve may just come in and stay loose for longer. so both sides with very strong points here is something to consider. monday was the worst day for the dow since october 28th since that big selloff back then, the index has only risen by about 30% just something to remember and i guess the de facto rbi let's welcome in chief investment officer jeff kilburg. jeff, we highlighted the bear case, the bull case. the bears won yesterday. i think it had more to do with options and covid. nobody cares what i think. what do you think?

>> sully, i don't think you can give too much credit to the bears. i still think they are sleeping. let's look at the option market. we saw the vix not even go over 25. that's the fear index. when you see the option premiums evaluated, there wasn't the scare. the sense of uncertainty it was in the market the prevailing under current with the vix a year ago on march 23rd with the low. with the s&p under 2,200 it has gone up 100%. the vix up 85, that was fear you did see uncertainty. we talked about how spot-on scott minerd i was in the same camp you nothing feels and tastes and smells better than the u.s. treasury when you see the uncer uncertainty. my point and i'm bullish, i think the consumer will overcome

the delta variant. there is buying opportunities. i like looking at the airline t sector the cash is looking to gobble up any pullback >> i can't speak for the country. i can't speak for what states are doing. i'm flying on sunday i have 25 flights booked for the next 35 weekend. that's a literal number, jeff. you are probably in the same camp i'm not changing my plans. you probably aren't changing your plans a lot going on to your point, it doesn't appear consumers or companies are changing trajectory which is higher. >> that is a good point. look at united airlines. this is a great cross section of earnings airlines and j&j and coca-cola

what is united airlines doing? they have $15 billion earmarked for new planes there are 50 regional jets they ordered. they are anticipating the pent-up demand these big airlines, who are flat look at united look at delta. boeing they are all hugging the flat year to date in 2021 there is a pick up there that makes sense as we find normalcy going into the fall. i think it will be travel and hotel. i don't know about the carnival cruise line. that's not my space. i'll be at o'hare in a couple of hours. it will be busy. every flight i have been on, the last couple of weeks, sully, has been packed. >> give us an update on what the airport looks like

co costco the one store that was ordered to stay open during the pandemic some of the stock market behavior yesterday i don't understand i understand jeff kilburg. jeff, safe travels >> thanks, pal happy belated birthday to you sdpyou. >> thank you very much i feel like i did something wrong. jeff, thanks. let's talk about the covid concerns and the delta variant welcome chris meekins at raymond james. former health official always a must read chris, welcome listen, you have said it on this show i have read it in your reports which are fantastic. here is the sad part is that delta variant the latest there will be another one after that and another one after that you said it everybody in america is likely to get infected or vaccinated or

maybe in some very small cases, both before this is done it is around the world not just here. where do you see this heading? >> look, the bottom line is we knew the delta variant would be impactful. it is possible we could see u.s. hit 100,000 cases a day. that doesn't mean we need to lockdown that is the wrong data point for investors and policymakers to look the important point is whether or not the health systems are overwhelmed by the number of patients that need care. there's no evidence we're going hit that level and as a result, we really shouldn't see the type of lockdowns that we saw previously when health systems were overwhelmed more than 100,000 people hospitalized a day in the united states >> you know, i was born 50 years

ago yesterday in los angeles, chris, i grew up in los angeles. i have fondness for the area reinstituting the mask mandate i'm not knocking masks i was masked up like everybody else last year if you are getting people vaccinated and i'll give new york city credit for not doing it that is the wrong way to go. if we want to get people vaccinated, give them a benefit. otherwise, if they are on the fence, they are less likely to do it. >> yeah, no question people should get vaccinated it is best for their health. if you get covid, you are less likely to be hospitalized and less likely to die that should be enough of an inspiration. not everyone takes covid seriously. you have to give them other incentives if you are going to say,

vaccinated people are treated the same as unvaccinated people will be less likely to get vaccinated when we're talking about negatively impacting vaccinations, fda needs to get on its tail and approve the vaccines there are a lot of people who say it is still experimental it is only under emergency use fda has the power, more than 150 million shots in the u.s. administered, you have more than 150 million people with vaccines with positive outcomes get on the ball and approve it so people can feel comfortable and help the vaccination efforts. if you can approve the alzheimer's drug that may not actually work, you think they can handle the vaccines. >> yeah. such an important point. still not officially endorsed. by the way, our treatment of this, some of the treatments after infection are so much better than they were a few

months ago chris, layout the difference with us and the uk i understand we look at the uk and say look at the case trajectory few differences from my vantage point. number one, they went with the let's get more people one shot first and then get people the two-shot regimen strategy. they have more astrazeneca and fewer mrna vaccines. is the uk the path we're going to take or are those differences enough to have a meaningful difference in our ultimate path? >> yeah, i think those differences do matter. they are meaningful. we have a larger population unvaccinated we will see high case counts we will have 100,000 cases a day. the comparison to me is not the u.s. versus the uk it is uk versus indonesia or

brazil my colleague has highlighted the fact that you have indonesia and brazil both with 50,000 cases a day like the uk. the uk has fewer than 100 deaths a day and brazil and indonesia have more than 1,000 what is the difference vaccinations the fact that we have so many people vaccinated and if you get one shot, even if it is a less effective vaccine like astrazeneca, it can still improve the ultimate outcome. how many people are hospitalized or how many people die from this >> i'm not saying case counts don't matter it is the outcomes making sure everybody stays safe chris meekins, raymond james i appreciate you coming on thank you very much. >> thanks, brian all right. up next, very different. the countdown is on. jeff bezos and the blue origin rocket team preparing for

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all right. welcome back good tuesday morning looking like not a tuesday turn

around, but we are in the green right now. dow futures are up 143 nasdaq up 62 about .40%. i know we fell 725 yesterday a long way to go to recoup those losses the fear and selling and that washout, if you will, not being followed through today all right. on deck, do you want to understand why stocks really sold off yesterday if you do, you will have to listen to our next guest he will make you a lot smarter

need better sleep? try nature's bounty sleep 3 a unique tri layer supplement, that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty welcome back not just about the markets today, three hours away from amazon ceo jeff bezos blasting off in space on the blue origin rocket we have morgan brennan live in

van horn, texas, with the latest what youcan you tell us? >> reporter: i like that, brian. currently a go for launch from here in the west texas desert at 9:00 a.m. eastern as jeff and mark and wally and oliver daemen is making the trip to sub orbital space. the first time that "new shepard"ans on board overnight, we saw the rocket rolled out to the launch pad fueling happening ahead of the crew climbing on board which will happen in just a little under two hours from now they will climb the stairs and make their way on to the ca capsule. i spoke with the designer about the system ahead of the historic

flight >> we are very confident that we will have a safe launch tomorrow "new shepard" is part of a bigger program at blue origin. we are building the road to space. this is where it starts. >> reporter: so what ascan we expect at liftoff? it is an 11-minute trip past the karman line. you will see the rocket detach and reland here in the desert. weightlessness for the fl astronauts the capsule will hurdle down to earth with parachutes and land in the launch site 1 year. it will make history with the oldest person to travel to space, wally funk and the

youngest, oliver daemen. that means this marks the launch of commercial service because daemen is a paying customer. >> who is oliver daemen and how can he afford it how high will it go. how does it compare to richard branson's trip >> reporter: both are sub orbital trips. this is higher than richard branson and virgin galactic. the altitude for that flight was 53 miles this is likely to go 65 miles. a back and forth of where the official start to space is the u.s. recognizes it at 50 miles. the recognition is the karman line of 62 it is the same effects that these trips, the weightlessness and curvature of the earth that passengers feel. as far as oliver daemen, his

father bought the ticket he is poised to become the youngest person to receive astronaut wings. >> amazing stuff we can't wait to see it. morgan, glad you are there cool stuff morgan brennan, van horn, texas. morgan, thank you. now back to the markets and your money yesterday's huge drop an cont attributed everywhere. the delta variant may be the reason you have to focus on the stock market structure the underlying pistons that run the engine, if you will. we have chris murphy joining us. covid concerns, delta variants it is a threat and a concern

as you noted, this market, for years, is the cycle. buy equity sell volatility. buy equity sell volatility. once that pattern ends, you get the steep dropoffs what happened yesterday? >> brian, thanks for having me yesterday, we started to see a little unwind in positioning you hear about you explained with volatility and short strategy and targeting the market grinds higher sell more. buy more we started to see that unwind yesterday in the option posit positioning. i would note one thing we will look for on days of stress and say things have unwound a little bit is the vix term structure inverting. that is a sign of a lot of risk and panic and concern pulled into the very near term. that vix term structure inverted for much of the day.

like the last 15 months, the buy dip and pullback that left the vix not inverting in the normal structure. i did not see a lot of panic, especially with the late-day move. >> do you think from the options market, what you are seeing, chris, was yesterday a washout or the washout >> no, you know, that main vix terms structure indicator, that did not happen we also look a lot for situations where over 95% of s&p components are down on the day a signal of the washout. we didn't see that the market rebounded at the end of the day it is heavy right now out there. a number of concerns you actually like to see that capitulation indicator happen so you feel more comfortable for the stock market going forward and find footing >> as we pointed out, yesterday

was the biggest day since october 28th i know pros don't watch it we are up 30% since that time. long term, do you see the positioning on the bullish side or are people saying no. it's bearish we're going down i'm not a buyer. >> i think we are well overdue for a healthy run of the mill 5% to 10% pull back the positioning is crowded on the long side like you mentioned. i don't think this near-term turbulence is over yet we are entering a weak period in august and september i would look out for that capitulation >> i guess like jeff bezos, we are along for the ride, as they say. it may be bumpy. chris murphy from susquehanna. that's it for us on "worldwide exchange. i'm off tomorrow have a great day

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good morning futures pointing to a little bit of a tuesday turn around you know, 129 points versus 1,000 in the last previous two

sec sessions is not much of a bounce it is a turn after covid sparked a fear the tuesday turn around mantra we will show you what is moving right now. crude prices falling on the fear of the resurgence could sap demand as opec is ramping up production. the richest person on earth is preparing to leave earth. the countdown is on until jeff bezos blasts off in blue origin rocket really cool inside it has nice windows. we will take you there live. "squawk box" begins right now. it's tuesday, july 20th. >>