tv Worldwide Exchange CNBC August 6, 2021 5:00am-6:00am EDT
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we can practice on and work our way up >> replacing doubt with determination and letting kids chill. for the news, jay gray jay, thanks. if you are just tuning in for handball or field hockey, we hope you will be with us tomorrow night for the news, 7:00 eastern, cnbc right now let the games begin. it is 5:00 a.m. at cnbc global headquarters. here is your top five at 5:00. the market records roll on with the s&p and nasdaq hitting new records as all three major indices look tonotch a winning week investors gearing up for the jobs report with expectations all over the map we preview ywhat to expect from the report. shares of novavax taking a
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beating after the emergency use authorization for its candidate. and key pressure on powell over the easing of the monetary policy. and jamie dimon's skepticism of cryptocurrency. jpmorgan chase giving clients its access to that sector. it is friday, august 6th here are on "worldwide exchange." good morning i'm dominic chu in for brian sullivan here is how your money and the global markets are setting up. stock futures are slightly, i mean ever so slightly to the down side for the nasdaq implied lower by 14 points dow implied higher by 3 points the s&p is flat right now.
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all of this a holding pattern ahead of the jobs report all three major indices finishing in the green thursday with the s&p 500 and nasdaq closing at record highs. s&p 500 with the 43rd record close of the year. the nasdaq closing its 27th. the dow is half a percent away from its own record high turning to the bond market 10-year yield. holding steady at 1.24%. 2-year treasury yield 0.21%. investors are dpegearing up fore jobs report at 8:30 a.m. eastern time estimates from 350,000 added on the low end to 1.2 million on the high side of things. yes, the whole estimate picture very much runs the gamut here.
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to the early trade in europe, we have positivity joumanna bercetche is in the london newsroom. happy friday morning, joumanna >> dom, a little bit of positivity a cautious trading session for europe capping off a very strong week of gains actually the best week for the stoxx 600 in the last five months with the major index making record highs. a strong week with earnings. in terms of the breakdown, ftse 100 in the uk trading below the flat line. digesting the hawkishness. ftse up four percentage points cac france trading in negative territory. a key performer on the market. the automaker up 8 percentage points this week alone german dax up 15 percentage
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points despite low output numbers for the month of july. let's take you you to the secrey or construction down about one- one-third. travel has been a volatile basket in europe it is experiencing a down day. we have insurance. good day for earnings today. that is leading that basket up 1.1 percentage points. i want tie you to another stock we are watching not in europe, but china. meituan. closed up 2.1 points we got information saying china's competition watch dog is preparing to slap a fine worth $1 billion on the chinese food delivery group meituan according to "the wall street journal. remember, this is where it closed and not reacting to the
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latest announcement. dom, this is a major theme of markets the last couple weeks. something inn vvestors will focs on over the weekend. dom. thank you, joumanna bercetche. we have bertha coombs bertha coombs with the update on the latest stories >> good morning, dom an american business group calling on the biden administration to restart trade talks with china the groups which represent interests ranging from framers to micro chip companies and pharmaceutical industry sent a letter to u.s. trade representative katharine thai and janet yellen saying they should take swift action citing tariffs they call on the biden administration to work with chinese officials to carry out commitments made under the trump
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administration last year chuck schumer is delaying a pivotal vote on the $1 trillion infrastructure plan after talks to wrap up negotiations on the legislation fell apart last night. senators in both parties spent all day thursday negotiating amendments to help the bill get final passage. they will take up the vote saturday and shares of novavax facing losses this morning after the company will delay the submission of the vaccine to the fda for emergency authorization until its fourth quarter despite that delay, novavax will submit for emergency use to the w.h.o. if approved, it will be allowed to be shared globally. the shares down 12% in pre-market >> big moves, bertha coombs. back to the markets with s&p
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and nasdaq at or near record highs with all three on pace for the second positive week from the last three for more, i'm joining by the senior portfolio manager nancy prial. it appears this market is consolidating. it is shifting sideways. stalling out a little bit. is this any cause for worry, the notion the markets are not going up, up and away? >> absolutely not. the opposite we think this is a sign of a healthy market consolidations are good. they give the market a chance to grow into the valuation. we started the year with valuations at the high end now we have seen s&p earnings estimates have come up to over $200 a share while the market is still going up, but up at a slower pace. that means the market multiple
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is down in the low 20s a healthy rate with interest rates where they are in addition, we had an extraordinarily good erarnings season earnings beats over 80%. most importantly, to us, orders across many industries are very, very strong which bode well for continued economic growth as we look out not only the next six months, but next year as well. >> nancy, i'm just curious because over the course of the last month, we have seen some more out performance from key parts of the market that are not considered to be, perhaps, as economically sensitive i look at utilities and perhaps real estate and elsewhere in the market is it worrisome we are seeing the defensive, so-called defensive sectors, take more of a leadership role? i know they are small in the market compared to technology. still, is it a sign? >> i don't think so.
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i think it is a sign we continue to be in a market that sees rotation among sectors as sectors get sold, they can rotate back into favor wehave seen interest rates com d down for a number of factors. some of which is, we believe, a recognition of the inflation pressures are more transitory than a couple of months ago. we think what is most positive is the continued growth as well as on the growth with the value side not deep value stocks, but growth stocks at reasonable valuations that can continue to power the broad averages as well as the smaller averages higher. >> i heard so many portfolio managers talk about garp growth at a reasonable price that acronym that has come back into the lexicon here in the financial markets. what companies are you looking at that do provide that growth
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at a reasonable price? >> a lot of what we're looking at to find that is looking in places that are a little bit off the pbeaten track what i mean is we are looking at suppliers and industries with major growth trends, but supplying with the shovels to the gold miners as opposed to the gold prospectors one area that is program icing is suppliers into electric vehicles we heard what president biden said yesterday about evs with cars and trucks. a number of players, one in particular is a company called meritore which applies to trucks they have secular growth and cyclical growth. >> ev. nancy prial, thank you
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>> thank you when we come back, your morning big money movers and why they are not showing an appetite for beyond meat. and investors on a wild ride the company now a focus of the retail trading crowd. and levi's looking beyond denim. looking for an acquisition to break into the active wear market a busy hour still ahead when "worldwide exchange" returns after this commercial break. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory.
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welcome back to "worldwide exchange." time for the big money movers. four stock stories of the morning. first, beyond meat falling as the maker of meat alternatives falls the company is forecasting lower than expected third quarter revenues over the delta variant. shares off 4.5% in the extended trade. up next, virgin galactic stock higher after the reopening sales of seats on the space flights to the public. the tickets start at $$450,000 per seat virgin says the next space flight is slated for late september in the partnership with the italian air force stock number three
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dropbox. the cloud storage provider with results that top forecast. the company posting a 12% jump in revenue now has more than 16 million paying users that is up from under 15 million a year ago those shares up 3% pre-market. finally, carvana shares rallying after the retailer online of used cars reported a profit and sales above analyst forecast the company continues to see exceptional demand for used vehicles shares up 9% pre-market. still on deck for the show, a major shakeup in the world of soccer as one of the sport's biggest stars exits the only club he's ever played for. initials l.m. and finger licking living. kfc enters the hotel business. the top trending stories are coming up next
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>> announcer: today's big number $512 billion that's how much money flowed into etfs during the first seven months of the year aorngccdi to morningstar. a new record that's already more than the total inflows in all of 2020 our clients come to us with complicated situations that occur in their lives. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪
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if you're 55 and up, t-mobile has plans built just for you. switch now and get 2 unlimited lines and 2 free smartphones. could provide to a family. and now get netflix on us. it's all included with 2 lines for only $70 bucks! only at t-mobile. welcome back to "worldwide exchange." let's check on the other top
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headlines with frances rivera in new york with the latest good morning, frances. >> dom, happy friday we start with president biden who signed a bill to award four congressional gold medals to law enforcement officers it will place them in the u.s. capitol and smithsonian to thank officers for service the medal is the highest honor congress can bestow. governor murphy is expected to announce philadelphia students in grades k through 12 will have to wear masks at the start of the school year due to the rising covid numbers he said there were no plans for a state mask requirement, but could change if covid numbers rise. the gun that killed billy the kid in 1881 is going up for auction. bonham said it is expected to
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fetch $2 million and $3 million for the gun, dom the bunch of other items related to the wild west and billy the kid at this auction at the end of the month that is something you are into, and you have the bills, it is yours for the taktaking >> that doesn't surprise me at all. there are a lot of rich folks with a lot of hobbies and interest having that history is not all that surprising for $3 million >> that will be worth it you can afford it. >> if you are afford it. frances rivera, thank you very much have a nice weekend. >> you, too. the top trending stories a big barcelona exit not so hot real estate deal and 11 herbs and spices for 11 nights bertha coombs is here with more on the trending stories. bertha >> dom, barca will look a lot
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different next year. messi will not be returning to barca this year after financial and structural problems preventing an agreement on a new contract he admitted he wanted to leave the club since last year the previous contract reportedly totalled $672 million for four years. making him the highest paid athlete in sports history. if he has the bucks, he can find a new home in the hamptons. real estate getting less hot in a new report out in july, contracts for hamptons homes were down 60% year over year that is the second time since 2020 it has gone negative for the hamptons contracts for condos in manhattan surged 65% compared to
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last year. and if you feel like flying the coop for a unique stay in london, kfc may have a hotel for you. the fried chicken teaming up for 11 nights. you can book a one-night stay in a room with a press for chicken button and drumstick wall paper and free chicken and hopefully tums to go with that 100% proceeds go to the kfc foundation. and top trending stocks on cnbc.com 10-year note and maersk shipping company. and robinhood right up there and amc right behind it. dom. >> no surprise there i would like to go back to the story about kfc. i do have an affinity for food
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i dguess my question is you pay for the hotel and get free chi chicken. would you stay i would do it. i feel a little bit of sorrow for missing out on the pop-up hotels i know taco bell had one a little while back in the united states would you stay there, bertha >> no. i think the only theme hotel i would stay is the twa one with the vintage twa stuff. that, to me, is very cool. >> 11 herbs and spices. >> the architecture. >> the 11 herbs and spices not doing it for you >> the herbs and spices are great. the package. the cholesterol delivery device that it comes with is not so good for me. >> bertha, that's the reason why you are healthier than i am. bertha coombs, thank you it will be a huge weekend in nashville, tennessee because indycar racing is coming to
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town literally taking to the streets. the music city grand prix happens this weekend the first time ever, the streets of nashville will be filled with music and the roar of racing engines. also, one of indycar's rising stars hits the streets in a new color scheme designed by the fan in the challenge and sits second in the points standing he spoke with our own brian sullivan to talk about what to expect from that big race in nashville. >> we did the track walk just now. it looks like a very long beach mixed with detroit track it has very long straightaways it has very tight sections when i mean tight, it's like detroit sector tight
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very, very narrow. one lane one car. that's it. it's going to be really cool, man. it looks like there are places to pass for sure i think it will be interesting to see how the racing is we're ready to take on the challenge. it will be a challenge for all of the drivers and all the teams. we will see which one looks the best. >> nashville is one of the hottest real estate markets out there and it will be faster with the grand prix in music city you can see more on the interview on cnbc.com and watch the music city grand prix on peacock on saturday and the race at 5:30 on sunday on nbc sports. many of the sister networks carrying that action should be a fun race to watch in tennessee. still ahead on the show, the white house looks to ramp up the number of kids vaccinations as
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they look to get back to school. and if you haven't already done so, follow our podcast. if you miss "worldwide exchange" check us out on spotify or apple or other podcast platforms we'll be right back. learn to ta♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪
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pattern this morning. wells fargo senior economies lays out the report. and manchin versus powell. the democratic senatsenator's criticism over the easing policies it is friday, august 6th, 2021 you are watching "worldwide exchange" here on cnbc welcome back to the show happy friday i'm dominic chu in for brian sullivan here is how your money is looking shaping up through the 5:00 a.m. hour stock futures in the holding power. dow i mplied flat. nasdaq waiting in the holding
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pattern. all three indices closing ought record highs the s&p 5 notching the 43rd record close of the year nasdaq with the 27th record close of the year. the dow is half a percent away from the record high at or near record highs for the major u.s. indices the yield on the benchmark 10-year treasury note is just a hair below 1.25% 2-year note 2.1% or 21 basis points let's get to the top stories right nowit with bertha coombs. >> jpmorgan chase laid out a strategy to give clients access to crypto. sources tell cnbc as of yesterday, financial advisers
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were allowed to begin placing private banking clients into a new bitcoin fund created with crypto firm nydig. it is nearly identical to one it offers the clients at rival bank morgan stanley this comes after morgan offered funds from osprey funds. jpmorgan chase ceo jamie dimon has been the skeptic of bitcoin and other digital assets you have to give your clients what they want. the white house announced efforts to boost the number of covid vaccinations for kids 12 and older. the medical providers will be urged to ask students about vaccination status during sports physicals. the administration will provide schools and colleges with resources to hold pop-up vaccine clinics. many have been doing this.
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as of last week, 30% of 12 to 17-year-olds have been vaccinated just weeks before they head back to school. and senator manchin is urging jay powell to scale back the stimulus efforts in the letter to powell, the democrat from west virginia said that he is increasingly alarmed that the fed continues to buy $120 billion of u.s. government debt and mortgage backed securities each month. that it may lead to the economy overheating as well as inflation. manchin's letter marks the first example of the congressional democrat urging the fed to alter the easing money policies. dom. >> bertha coombs, thank you. amid questions amid the pandemic, a number of states thatbraced for cuts over fears of declining tax revenuvenue is finding the opposite
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they are increasing spending as well ylan mui is joining us with more >> reporter: dom, we talked about the stimulus checks and child tax credit payments. all of that money is coming from uncle sam. what gets less attention is what is happening at the state level. 20 states have cut taxes this year some through stimulus checks others expand tax credits. reductions in corporate, property and sales taxes 11 states have lowered income tax rates. that's the most states cutting income taxes at one time in at least two decades according to the tax foundation most of the states are led by republican governors nebraska, arizona, idaho enacted the biggest tax cut ever also on the list is wisconsin. just last month, democratic governor approved the state's budget including a $2 billion tax cut champion by the gop lawmakers.
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this is a different place than most states thought they would be in when the pandemic started. 38 states ex-sceeded their tax revenue forecast there is a lot of ground to make up, but dom, we are seeing lawmakers in washington and across the country focus on trying to keep cash in the marlon hand of constituents. >> expectations were so low. ylan, while we have you here, if i could pivot. we saw some action or a lack th thereof yesterday on the infrastructure bill and the push can you bring us up to speed on the state of play with the nearly $1 trillion infrastructure proposal? >> reporter: senate majority leader chuck schumer is planning to hold the next key procedural
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vote that would cut off debate on the infrastructure bill on saturday we would expect that we would see final passage after that there have been a couple of 11th hour hang ups including rules for tax players in the cryptocurrency industry and the cost of the bill and some republicans are complaining because it is not entirely paid for according to the estimate from the cbo this is expected to get bipartisan support over the weekend and see final passage in the senate after that, the senate will have to turn to the $3.5 trillion spending package that democrats hope to pass on their own. we expect to see that work begin as soon as they pass the infrastructure bill. >> ylan mui, thank you very much. the jobs report will be out later this morning despite the covid cases and the
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shortage of workers, there may have been a bump in july the forecast is an increase of 845,000 jobs in terms of non-farm payrolls. that is down from the 8150,000 jobs in june unemployment is expected to tick lower. let's talk about the employment picture in america with sarah house with wells fargo sarah, this is a big move. 845,000 estimate can you take us through your expectation for this particular number >> sure. we are close to consensus expecting 865,000. part of that reflects we continue to see strong demand for workers. job openings still at record highs. where we are going to get a boost this month is going to come from the government sector. favorable seasonal effects
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because we did not have as many education workers on the payrolls we will not get as many layoffs. related to the previous story, the state and local governments are surprisingly good with their budgets. there is a lot of runway in terms of more hiring we have seen government sector employment at 35% of the way back from the covid lows that compares to 70% in terms of total payroll. there is a lot of boost we are looking for particularly in the government sector today. >> sarah, let's go through a little bit of the mechanics behind the estimates as i mentioned earlier in the hour, they run the gamut i was surprised how wide ranging the estimates are. 300,000 plus on the low end of the range. some economists are expecting 1.2 million jobs created the middle is 845. you are close to the middle. what is driving that wide
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variance in the estimates all over wall street >> i think the big question comes down to what is happening with the labor supply. i mentioned job demand or demand for workers is strong right now. it is not clear how quickly those workers are coming back. that's creating a limit on how much companies can able to hire. we think we will see some improvement in the labor supply and part is you see states ending those extra unemployment benefits which might push workers back into the labor force. the increase of wages in the past few months is a pull factor for workers who may have been on the sidelines and thinking about coming back. the payoff is now better we will see that boosting our number there is still a lot of questions over how those come back a lot of health concerns with delta and child care issues
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which remain as well i think that's behind the dispersion right now >> satellitrah, there is a big with the enhanced unemployment benefits are a factor with people working you mention the record high number of job openings from the survey from the economist perspective, as you look at the next few months, september is when the unemployment benefits are supposed to expire do we have to wait until october or november or december to see if there is imperial evidence about whether or not enhanced unemployment actually had a driving factor force behind the employment picture over the course of the covid pandemic >> i think we are starting to see some evidence come in now with those states that have ended. it is hard to fully separate from other things going on right now. for example, home base data
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showed in july you saw a bigger decline in employment in states that ended the extra unemployment benefits. where employment picked up in states that continued them it is hard to disentangle the states that continue them to have more catch up to do and the fact you also have seen delta emerge and takeoff earlier in the states that have ended those benefits those cross currents with the benefits and health concerns as well it is hard to disentangle that we will get a better read over the next couple months it might not be in september which is where a lot of policymakers and markets are looking. we will not have as much clarity as some people expect by then. >> sarah house, thank you. coming up, a whipsaw second week for robinhood as it is the new focus for the retail
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investor susquehanna's chris murphy joins us with the latest. and apple announced reporting images of child exploitation uploaded to the icloud service in the u.s. to law enforcement. the move comes in line with other cloud providers which scan users files for those images. and a pleadge to reduce the net carbon to zero by 2050 this moves comes as darren woods faces pressure to take more of an active role in reducing emissions. and levi's is buying beyond yoga it will now ventmo io the active wear sector. those shares up in the pre-market trade "worldwide exchange" is back after this crepe corrector lotion... only from gold bond.
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welcome back wild second week for shares of robinhood. retreating after the monster rally days before. this is after the existing shareholders will sell 98 million shares of stock over time robinhood rolling out options for the stock on wednesday helping to fuel the share spike. it was the second actively traded stock that day.
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it may just get started due to the interest in robinhood and shares let's get more with chris murphy over at susquehanna. i knew things would get crazy. options markets tend to do that. we are not talking about a massive amount of options volume is it the options volume driving the volumeatilityvolatility? >> good morning. that's a great question. we're of the opinion like you said, sure, a lot of options are trading. the volume is nowhere near the volume we are seeing the stock fur furthermore, what you see in the options is a lot of volume during the day at the end of the day, the next day, we are not seeing much of a change in open interest. that is telling us that a lot of the calls are traded back and forth through the course of the day. that makes me think the stock is
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limited. it is more of a psychological impact. >> we have seen more developments come out with regard to the very fledgling options market for robinhood because it has not been that public that long if you take a look at the very recent activity, is there anything you can glean about what folks are predicting for the future direction of the sds stock? we have seen more exercise prices high above the market right now and a lot more people put option positions or bet against the company or short what gives which way is this supposed to go >> if we start with the far out of the money call strikes lessing stadiumed, you know, when investors are trading those calls, they are not necessarily expecting the stock to get up to that price what we are seeing in the meme stocks like robinhood is different from the traditional stock where in the stock
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rallies, volatility increases. if you buy one of the far out of the money call as, you might not expect robinhood to get up to $200 if robinhood has a 10% or 20% volatility strikes, the calls increase in value and you can sell them more than you bought them for and on the down side everyone -- no one knows where this will go we have seen this play out in gme and amc before we have people buying puts there are different reasons to worry about buying puts. everyone has a different opinion on this one. >> can you take us through a little bit about the notion right now that we are seeing some of these out of the money or call options with exercise prices that are extremely above the market right now it almost feels as though those
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are gambles. do you feel as though with the addition of closely expiring or weekly put options or call options that are very out of the money? do you feel it feels more of a gambling mentality and does that suck in retail traders to be more speculative than traditional hedgers out there? >> you know, like i said, the dynamic with the meme stocks is different. when you -- the way they are trading when the stock rallies 10% or 20% and the stock rallies val volatility as well, you will get bang for your buck whether it is speculative or gambling or whatever you want to call it, because that dynamic has changed, there is an extra kicker because of the vol volatility that is why you see those trade
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more not necessarily a gamble that the stock will go up $50 you are actually positioning for stock to rally and volatility to increase at the same time. not necessarily expecting the stock to actually go all the way through that you are looking to sell that call before that happens. >> chris murphy at susquehanna. thank you. on deck for the show stocks in a holding pattern. investors await the non-farm payroll report we will see what to expect in the final trading day of the week. if you have not done so already, follow our podcast if you miss "worlidchgedwe exan." you can follow us on your podcast platform of choice we will be right back. woo-hoo! it's time for your extracurriculars. ¡vámanos, amigos!
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it is 5:51 eastern time. the time zone that washington, d.c. is in and that's the live shot of our u.s. capitol building right now where lawmakers are still trying to figure out the $1 trillion infrastructure bill and what happens next futures right now are just about flat on the session as investors await the key jobs report at 8:30 a.m. eastern time let's bring in david katz. david, always a pleasure to have you here let's talk about whether or not this is still an investable market at record highs or do you wait for pull backs? >> we think it is an investable market you have to look at the actual stocks it was a strong earnings season. strongest on record with 85% beats. the beats were significant 10 cents after 20 cents per share rather than one or two pennies. there is still a lot of stock
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that did well. the stock sold off 10% to 20% below highs. selling 18 times earnings and good profits, that's where you want to place your money rather than chasing what's hot. >> let's go through this i know you have those stocks set ups. what are the types of companies you are looking at for those pull backs that you commit new capital to >> it is a lot of different industries in the last few days, a number of health care companies with good numbers and outlooks, but not good enough for the market they sold off. that is a concern and a quality company doing well over the next 18 months. the stock sold off a downgrade this morning it may be weak on the open the guidance is off $3 we think if you have a 6 to 12 month timeframe, this is a good place to put money you have that on the health care
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side pfizer is an overlook teach play pfizer sold off $5 that is a good entry point buying a lot of stock back we think that's really the key is finding good businesses, but don't pay too much >> earlier in the hour, we talked to nancy prial. a lot of portfolio managers are looking for garp trade there are other places in particular i think there are places like in energy or after the run up, there are still places in technology or comm services after runs like that which still have the growth profile that is still trading at reasonable valuations >> some have had significant pull backs on the energy slide, we like chevron. we think it is poised for
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another leg up longer term, we have concerns about energy the president with the electric vehicle announcement yesterday that trend will slowdown demand. we think of energy as a trade. if you get another 10% to 25% on the upside, we would sell that qualcomm had a robust quarter. it is off a few dollars in the last week. you can step in there. utilities. financials were robust for the first six months of the year pulled back in the last month and a half m&t bank a health care company like amgen and merck. >> one of the characteristics of the companies you spokeabout i the motion they provide decent dividend yield for investors income producing investments or
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engaged in stock buy backs if you are an income oriented investor, are their places that might provide the safety of the less price volatility and pay decent dividends >> wonderful question. great point. we think that is the best area of the market. the dividend payers have done worse in the last 12 months. there is a lot of good and slow and steady companies we think are getting 3.5% to 4% yield you are getting 1.2% on the 10-year bond verizon, kimberly-clark, slow and steady coned. that is a place we think you can put income-oriented money and get appreciation over time >> david katz. thank you very much for the stock picks. >> thanks a lot. that does it for us on
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pre-market earnings moevers. plus, cnn fired three by coming to the office unvaccinated the big setback for return to work plans it is friday, august 6th, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin joe is out today big day with what we are watching with the jobs report. ahead of that, the u.s. equity futures. they are flat. they are waiting to see what happens too. dow futures up less than a point. same story for the s&p nasdaq down 18 the nasdaq and s&p 500 set new records yesterday again. all-time highs
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