tv Worldwide Exchange CNBC August 18, 2021 5:00am-6:00am EDT
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to pull the plug and your morning rbi has big, big pay days for american executives topping the $100 million club the list may surprise you. it is wednesday, august 18th, and this is "worldwide exchange." good morning good afternoon good evening welcome from wherever in the world you may be watching. i am brian sullivan. good to be back in the seat. hope you're having a good start or good end of your day. here's how your money is setting up the day we are seeing futures slightly lower. down just a touch. not a lot. dow futures off 62 points. .1 of a percent. yesterday the dow and s&p snapped a five-day win streak.
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dow down 282 points. primarily dragged down by one stock. shares of home depot on the second quarter numbers a bit more of those. thes&p 500 suffering its worst day in a month still, context is key. markets have had a very good run lately making more new highs this year than any year since 1995 i think it's like 47 or whatever new highs so far this year let's take a quick look at the bond market ahead of the release of the fed meeting minute which comes out this afternoon 10-year yield remains under 1.3% checking cryptos, we are seeing them down just a touch bitcoin down 500 bucks down 45,000 ethereum off 2%. let's go now around the world. julianna tattlebaum is in london key headlines overseas, julianna what have you got for us this
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morning? >> good morning, brian so far it's been a muted start for european markets it's a mixed picture but generally we are trending lower. the cac 40, down .4 of a percent. the ftse 100 in the u.k. down by 1/3 of a percent. a little bit of green for the health care heavy swiss market this morning brian, you talked about the downturn we saw yesterday. european markets were more resilient. the stock 600 ended higher today perhaps we're catching up on the trade you saw come through late in the session. yesterday state side, in terms of data, we got u.k. inflation numbers coming through u.k. inflation slowed more than expected in july price growth for clothing, footwear and recreational goods eased. still an open question as to whether we see a pickup of inflation. investors closely watching those numbers. turning to the sectors, this is what the split looks like.
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even split in terms of gainers and losers leading up by .6 of a percent alongside health care and utilities. basic resources leading losses down 1 1/4%. yesterday bhp very, very strong. a bit of a pull back the underperformer >> deteriorating situation >> the white house 15,000 americans the taliban.
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any questions remain very high. >> good evening to you. the taliban trying to convey a message. >> it's calm in afghanistan working with those who are fighting against them. they're claiming they committed to the rights of women under the islamic law amidst all of this skepticism the situation in kabul is very fluid.
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we understand the taliban is offering safe passage to kabul airport which is much more secure at this hour. there are troops on the ground and planes taking off and landing as the evacuations continue pressure mounting on the biden administration to get americans and allies out of the taliban controlled country quickly and safely as you say, nbc news reports as many as 15,000 americans remain on the grounds in afghanistan this morning the white house has not said if those evacuations can be done before the president's end of the month deadline bribe, before i let you go, i wanted to update you on news we're following with the central bank in afghanistan. a series of tweets, he says the taliban will have to implement capitol controls and limit access to the dollar because the u.s. has frozen afghanistan bank assets worth $9 billion in total. the bulk of that conveniently
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held at the u.s. federal reserve. the u.s. still pushing back on the taliban, brian back to you. >> dan murphy in abu dhabi thank you very much. all right. in the meantime let's get a check on some of this morning's other top stories including if you were hoping to mask off on the airplane or airport, think again, the u.s. stretching it out. bertha combs with more welcome. >> reporter: good morning, brian. the tsa is extend being the federal requirement for travelers and masks on commercial flights, buses and trains the agency now saying that rule will stay in place until at least january 18th of next year. that mandate was set to expire next month the extension will cover traditionally busy periods for travel such as thanksgiving and the december holidays amid continued concerns around covid. republican senator marco
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rubio is renewing his call for tiktok to be banned in the u.s rubio calling on the biden administration to make that move following reports that the chinese government has acquired an ownership stake and board seats in bytedance in june president biden revoked former president trump's 2020 executive order banning tiktok replacing it with a process for evaluating the security risk. and neel kashkari reiterating his benchmark to start winding down the fed's easing money policies. speaking at a summit the minneapolis fed president said it could be easy to reduce the bond buying later this year. kashkari said that would depend on making further progress in the labor market echoing his comments kashkari not a voting member this year. >> no, he is not
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out with some pretty tough comments on crypto as well, bertha he is a very outspoken member of the fed. we'll see you in a few minutes. >> yeah. >> bertha, see you back in a couple of minutes. thank you very much. why don't we stay there, where bertha left off. the comments from kashkari the central bank about release their comments we're joined by mark avalon. mark, good morning good to see you back on. how closely, if at all, are you watching the fed and what it says >> we are watching the fed a lot. this has been a federally since 2008 we've said jerome powell is the most powerful man in the markets that we look at. jerome powerful is what i call him because what he says, thinks and does will drive this market more than anything, more than that little retail number we saw yesterday which i think was a bit of an over reaction. it's going to be all about what
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the fed says out of jackson hole how measured they are. how calming they are to the markets saying, hey, we're going to take a little bit off the table over a prolonged period of time let's not panic. investors are getting the message. the fed is going to begin to taper. they're setting the table for it they are the biggest driver in this market. there are other factors but when you look at the root of how they rebounded us from the depths of 2008 and the spring of last year, you can't deny the fed is the number one factor facing this. >> what will be number two, mark >> there's a confluence of other factors that map you have congressional spending which is massive you have super strong corporate earnings and you had good guidance and you have trillions of dollars on the sidelines. you take those three factors and this accommodative fed, that's why i want to look beyond yesterday's numbers. i think it's a bit of over reaction
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i'm reading this morning we had a plunge yesterday we had a plunge of less than 1% after a rally that's phenomenal. we have two historic years last year and this year the markets are up we've doubled off the lows less than 1% plunge. that doesn't resonate for me and my investors i think those four huge factors will dominate the little headlines. that said, it shows me that investors are jittery and what worries me most is there may be hot money in the market. when we get a little blip with a little news, if we get algorithmic trading, that could send stocks down that's what concerns me more, not the underlying pinnings of this market. >> we haven't had a 5% down move of the s&p in ten months that is truly, truly remarkable. knowing then all you know and all you have just said, what are you advising your clients to do?
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>> well, that is exactly why i'm bullish, because with all of these people waiting for 3, 4, 5% with up to 4 trillion on the sideline, it's supply and demand the demand increases the price this is actually a bullish sign and i actually hope we get a modest correction because we will see some of the shakeout of the higher multiple, lower quality names. we'll get a return to more fundamental investing. characterized with many corrections. even 10% correction, even those are not that uncommon and a mini correction here could be looked at as a bullish signal >> so what are you buying with that
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>> if i believe in that, i'm still going to love technology >> it will work if it's a little more widespread. it will work if the economy works and grows. i think stocks like amazon have not really participated in the past year are going to be looking good on a valuation basis. we've seen the other fang names do very well alphabet and facebook this year. apple as well. takeovers and mergers with the afore mentioned larger players as well as fin tech and online so we like financials. >> financials, technology, maybe some fintech thrown in there mark avalon, thanks for kicking
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off the show for us on this wednesday. see you soon take care. >> good to be here >> you're welcome. the growing threat of antitrust action the co-founder of dish network on that issue. plus, t-mobile out with new details on just how much of your information may have been compromised in the massive data breach. then retail earnings, yeah, they're back in focus. target and lows prepared to open up their hooks after home depot scared the market yesterday. talk more about all of it as "worldwide exchange" rolls on right after this millions of vulnerable americans struggle to get reliable transportation to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision
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all right. welcome back i am back from colorado where i was at a conference. i had a long chat with dish network founder and chairman we covered a lot of topics one of which was growing concern over antitrust action out of washington, particularly for big tech and i asked whether those worries were warranted >> probably. i don't know we don't have much money to be -- you know, we show up on the screen some people in this audience, you know, have a lot of money. and i think that what happens when companies get big they start doing things that
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are -- to stay big you always start out with competition and the bigger you get, you always start getting around the edges so i think there's probably things that i'm not particularly expert on that and i don't see tons of things that are anticompetitive as far as our company is concerned, but we do see things around the edges. >> now ergen also sayings when it comes to a number of technology companies including those offering online services, they have not been as regulated as other sectors in 45 plus minutes we had a lot more than that we talked about mobile innovation, their 5g rollout, new deal with at&t, cdma shutdown to t-mobile you can see our full conversation on cnbc's youtube page check it out. still on deck, bust out the credit card because the girl scouts are busting out their
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frances rivera in new york >> hi, brian the death toll in haiti continues to soar. they say more than 1900 lives have been lost and the number of injured climbed to nearly 10,000 humanitarian groups are straddling unicef estimates more than 1.2 million people have been impacted texas governor greg abbott announced he tested positive being fully vaccinated abbott said in a tweet he has no symptoms disney is bringing a little extra magic to halloween this year with its new adapted kids costumes the company unveiled the inclusive collection to transform wheelchairs into fan favorites, from cinderella, mandelorean. they're online for $50 when you look at them, i would
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think, brian, $150 that's the price that they're smacking on them right now i'm sure a lot of families would pay more than that great to see the smiles and talk about halloween this early it will put smiles on everybody's faces. >> frances, you know, we're boring old cnbc not cool like you, but we have talked a lot about these supply chain problems i'm telling you, pie your h halloween stuff now. heck, buy your christmas gifts now. if you're hoping to get it with all of the problems out of china, it may not be there you're not wrong to bring up halloween in mid august. >> you're right. i'm in such denial because i want summer to keep going. you put it that way, yeah, better start stocking up now if you know what's good for you. >> thank you don't bring up a river in egypt, denial leave rivers out of it frances, thank you very much such a terrible bad joke i apologize to everybody
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let's get now to some of this morning's top trending stories please save the show which include old art, old dads, new shoes and some new cookies bertha coombs, rescue us >> reporter: i'm a fan of bad jokes. i think they're always fun anyway, an attempted art heist went terribly wrong. shots were fired at the museum where the painting was on display. one of the robbers dropped the painting as the pair drove away and the museum says the painting now is being examined for damages. the monet was purchased in 2015 for almost $1.4 million. meantime, adidas has a new simpson's collaborations and icon ombud the new shoes design is a nod to
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the character's brown, pink and green color scheme it will be released on october 3rd. a shoe only a dad could love the 30th anniversary of the episode that inspired it. and there's a new girl scout cookie coming to town. the girl scouts have announced a new brown any cookie called adventure fills. this will join the 22 season lineup the brown any inspired cookie features caramel favored cream and sea salt last year's edition was a french toast inspired cookie. girl scout cookie season starts in january and runs until april. a quick check on the top stocks trending right now on cnbc.com most searched are the 10 year treasury note, moderna, alibaba, tesla and as usual, brian, amc boy, that meme trend is not
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dying out any time soon. >> who'slooking up the 10-year bond >> reporter: well, you know, if you're refing your mortgage, you want to see what's going on with the 10-year treasury note. >> by the way, bertha, i was in colorado yesterday at aspen. i tweeted out a picture of it. 5 bedroom, six bath home, big house, 5,000 square feet how much >> i saw that? >> it was over $13 million if i recall >> 13.5 million! >> reporter: i know. but the views. >> great town. >> reporter: you feel like you're in the sound of music it's beautiful >> i'm not joking. bertha, we have not talked tell the audience, i was literally walking down the street humming adelweiss because i thought the same thing passing the mountain haus.
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i have emotional problems. there's that thank you very much. 13.5 million bucks by the way, listen to our rbi because the people that we're going to reference in the rbi could buy that house anyway, coming up, the state department's former head of energy resources laying out the fights that take shape over afghanistan's mineral riches and why china may suddenly want to become a friend of the taliban that's why i take oste bi-flex to keep me moving the way i was made to, it nourishes and strengthens my joints for the long term. osteo bi-flex, plus vitamin d for immune support.
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will the market rally on a big win streak snap so what are the key catalysts for your money? ahead, we're going to lay it out. hacked t-mobile out with new details on the massive data breach including who and what were compromised. already tough situation out west getting even tougher. california's power company cutting the power to stop more fires. it is wednesday, august 18th and this is worldwide exchange welcome back, everybody. good wednesday morning 5:30 on the east coast thanks for joining us. here's how your money and the markets look as we are exactly halfway through the 5 a.m. hour. futures are not down much. tech futures, they just turn
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positive dow futures down 68. about .1 of a point. nasdaq future we'll call them unch for unchanged the dow and s&p 500 snapped their five day win streak. the dow down 5.8 the s&p suffering its worst day in a month keep it in context, we've made 45.6 record highs from the s&p this year. that is the most since all the way back in 1995 wow. more on the markets at a minimum. let's get more of the massive t-mobile hack or some of your personal data may have been compromised. bertha is back with that and other key headlines. bertha >> reporter: t-mobile says an ongoing investigation into the systems says the personal data of nearly 8 million of its current wireless customers was compromised. in a statement the company says it became aware of the attack
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late last week after an online forum claimed user data was leaked t-mobile says data from about 850,000 pre-paid customers and more than 40 million records of former or prospective customers were also stolen the data included names. date of birth, social security numbers and driver's license information. t-mobile says there was no indication that any financial details were exposed meantime, house speaker nancy pelosi is bracing for a fight with moderates next week the house will move forward with voting on the budget blueprint for that $3.5 trillion health care education and climate package rejecting demands from the group of seb tryst lawmakers to vote on the $1 trillion infrastructure bill. pelosi sent a letter last night urging her caucus to pass the budget measure once that happens, they can start to kraft details of the legislation. democrats can afford no more
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than three defections in the narrowly divided house. pg&e is cutting off electricity to as many as 51,000 customers and heavily forced parts of northern california to reduce the risk its power equipment will spark wildfires the company will begin implementing public safety power shutoffs late yesterday in parts of 18 counties north of san francisco in anticipation of high wind gusts. the proactive shutoffs may last this afternoon the dixie fire, the second largest in california history may have started when a tree hit one of pg&e's power lines. tough situations there for those folks this summer. >> it has been every year and every stum mer it gets worse and worse. bertha coombs, thank you very much. let's continue the discussion around the fall of afghanistan. its loss to the taliban is a
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tragedy on so many levels, particularly for many of the women and children now living in fear for their lives that is obviously the most important thing in all of this there's potentially huge economic story here long term. afghanistan is thought to be very rich in so-called rather pirt minerals. everything we need to power our electrified future china has tharp sights set on them frank, it's good to have you on "worldwide exchange. thanks for getting up early. what do we know about afghanistan, lithium and rare earth minerals >> thanks, brian thanks for having me on. we've known since 2010 about the significant minerals endowment that afghanistan holds
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what's really is it's increased in value lithium is one of the critical elements that's necessary to power the clean energy future. so we've known about this endowment for quite some time. what's really been a headwind against the development of those resources was, one, demand wasn't what it is today and, secondly, the poor governance issues in afghanistan, the evolving world of law all created a headwind against investment and there are better places to invest that's all changing now in the context of this exponential demand increase given the clean energy transition and also the taliban now in firm control. >> right now the rare earth minerals, their processing is about 85% controlled by china because they saw the future decades ago. they got ahead of us and they control that part of it. we've been talking about a lot
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here on cnbc do you think or do you believe that china will reach out, try to cozy up to the taliban with its eyes on some of these resources? >> yeah. there's two points the supply side of the equation, which you're speaking to, and also the geopolitical context in which china wants to engage. china as well as russia have made diplomatic overtures to the taliban. know that's in train what china's most focused on is as you noted continuing their dominance in rare earth elements process refining but they're interested prip pli in stability and also to secure their considerable road investments, they've already made in pakistan what is increasingly concerning aren't just the diplomatic overtures but also this increase being reproach with the taliban
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where the taliban says the repression of the muslim population is an internal china matter and also that they welcomed chinese investment in healthy development of afghanistan. china is starting the machi machinations. >> and the one thing that china has done in the past is they have gone into impoverished nations, primarily like the congo, and they have said, hey let us in. we're going to give you a bunch of money we're going to extract the minerals you'll get a big cut and we'll ship them back to china for processing now with the taliban, who knows what their leadership wants to do or will do and whether or not there's any infrastructure to do it china could provide the funding for that do you think we will see china and to your point russia come in with cash for the country and say, let us in
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we'll take the minerals, you'll get a cut, we'll could all the work. >> absolutely. i think china is laying the groundwork to develop those roads and those export avenues back to china. again, geo politically, the market context, china makes decisions not based on quarterly statements and annual returns, they make decisions for the very long term and through a geopolitical lens. they're responsive to the party dictates and so they're looking at things not just through that commercial lens but through the geopolitical i think they're starting to make those, lay that groundwork for just this kind of investment i can envisage here a taliban protector security zones for chinese mining camps in country. what i think is really important here the answer, as you've mentioned,
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we're playing on playing catchup. we need to band together to say countries will not accept minerals for anything based on repressive regimes we did this before we expanded our economic security of free nations together into the con 2eks of apartheid south africa where the world said we are not going to accept doing business with a regime that represses the population this was a clarion call to step up that same kind of leadership in the world we cannot accept these minerals to be exploited by a country that represses half its population >> the minerals, by the way, should belong to the population. there's obviously the fall is so rapid it's a long way to go in the story. frank, good to have you on the program. thank you very much.
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appreciate it. all right. coming up, will lowe's pull a home depot and spook investors we're going to hammer down on some of the home names and why target is the target of retail home earnings. stick around your doctor gives you a prescription. let's get you on some antibiotics right away. you could have it brought right to your door, with free 1-to-2 day delivery from your local cvs... or same day if you need it sooner
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five-day win streak but primarily because of home depot. it dragged down the index as blowout earnings were apparently not blowout enough now look ahead to target and dheem poe's numbers, lowe's. by any measures, home depot numbers were great what did you expect from lowe's? >> well, when we compare the two of them, home depot and lowe's, there's no question home depot is expected to perform stronger than we expect home depot to do better than lowe's home depot is actually facing decompression. lowe's posted stellar numbers last year. they posted the strongest same store sales on record at 34.2%
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as a result we're expecting a drop in same store sales at negative 2.2% this time around it's important to note that a negative 2.2% usually in normal times does signify that a business is struggling, however, this time around it means that business volume is holding up very well compared to the strong gains it did a year ago. as long as we see a small single negative digit growth, it means business volume is holding up well >> not just lowe's we know the second quarter is where everything locked down you five or six stores can stay open, everybody else has to shut down is there any way or reason to
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comp year over year? or should we look at 2019 because second quarter of 2020 was just bonkers just nuts on so many levels. >> you're completely right, brian. there is no comparable year to 2020 whatsoever. what we do is we look not only at 2020 but what's available to see if retailers outperformed that number. they're both expected to see significantly stronger than 2019 level. now to your point, the main disruptive measure is ecommerce. as a result, they're looking very carefully at what the ecommerce numbers are that these companies are reporting. for lowe's and target we're expecting to see flat. target last year saw nearly 200% growth in comp and ecommerce
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comp as a result, a flat number this time around as business volume online is huge is holding up very well. >> and the stock's up 86% in the year the expectations have been brought in you have the huge numbers. the stocks say, what happened? look at the stock's run. i don't want to say back to school because my friends in illinois, georgia, florida, their kids are back in school. they started early for many of us on the east coast, we still have a week or two left how are we looking for either already back to school or prepping for some back to school >> well, they already gave us the back to school telling us it's prettystrong. traffic is up for back to school they prepped for it. we are seeing the gain from target target is one of the top
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favorite from analysts by refinitive it's launching the collaboration with ulta which is perfect just in time for back to school as teenagers go back. the back to school season will benefit from late august to early september sales. once students go back to school and they eye what their classmates are wearing, they have a tendency to go back to the malls and online to shop for the latest fashion we'll see a good back to school cease zone here. >> it's back to the store season, not back to school season now i see how it is done thank you very much. see you soon take care. >> thunk. and by the way, good on the cnbc's exclusive with target ceo
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and the results coming up in the next hour on "squawk box." superstar jennyharrington rolling out the latest stock plays. and your morning rbi on the six highest paid executives in america, and i don't say this lightly. the numbers are going to blow your mind. and if you haven't already, follow our podcast it's called, you fessed it, "worldwide exchange. we're back on "worldwide exchange" right after this hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.
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billion and they report that actually gives him a paper gain of 33 billion already. you go, elon number two is a guy you may not know of. fellow named mike pykasz oak street health. it says on its website the goal is to help end the, quote, disparity in health care his total comp came in at $568 million almost all in stocks and options. apparently there's a lot of money in health care because number three and four on bloomberg's list are the co-ceos of good rx options glands of $497 million followed by eric wu, at 388. alex cart at palantir at a meager 368 million i'm kidding about the meager
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bloomberg notes many numbers includes replacement awards from prior years. four of the five companies are fairly new ipos or new ipos. there is that. even for many others, 2020 was a very good year in the c suite with 15 executives getting more than $100 million each in total compensation in case you're wondering, the ceo of the world's biggest and most important company in the markets, apple, tim cook, he came in only at number 8 at 265 million in total comp. did we tell you the numbers are big? and they are definitely random but interesting. now we know who can afford that house that i referenced earlier in aspen. now let's welcome in a guest who is worth all of that and more i haveno issue with compensation a lot of those are ipos. those are big numbers. this is random and mabry dick
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cue louse. do you look at things like executive comp when it goes to picking a stock? >> yeah, i do. but the companies that i own, the ceos don't get paid those amounts. as you're going through that, brian, all i could think of is if you don't have anything nice to say, don't say anything at all. there's just something not okay to me about some of those numbers. >> that's not why we brought you on before we get to some of your new picks -- just brought it up because i'm jealous. i'm not going to lie, jenny. >> are you >> we just talked about home depot -- well, i wouldn't mind living in aspen. very nice town >> you don't have to make that much to live there. >> a little birdie tells me in my ear, he said, hey, ask jenny about home depot she just sold the stock a few months ago is that true if so, why
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>> we did. we sold it literally in anticipation of exactly this kind of earnings report. we're in a sad way excited to see the report we sold it back in may at 335. it went down, plateaued and proved our sell thesis this is a broader sell thesis which is related to peak earnings and expectations for many of these pandemic beneficiary companies being too high with the idea being that a lot of that pent-up demand that drove the sales growth at the apples, amazons, netflix over the last year, it's satisfied. people aren't going to spend the way they spend from 2020 until the beginning of 2021. we're going less digital this year we can see that.
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people want to get out people want to spend on experiences. they're sick of redoing their houses and all of the supply chain issues we did sell in anticipation of this we sell sherwin-williams for the same reason and that's worked out nicely i think we need to be careful as we think about the upcoming years. you can't say, hey, what worked for me in the past is going to work again it's probably not. time to get creative >> so you're saying people wanted to paint the town red, not paste their house red. that's another bad dad jokes. >> you're on fire. >> one of the reasons we love having you on for many reasons is you're always bringing new names, clear way energy. who and why? >> so clear way energy is a power producer you know, when you were talking before about pg&e shutting off some power to northern
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california, that's scary they generate power and sell it to the grid. it sounds like exciting clean energy it's an energy production company but they have a dividend that can grow in 4.5% dividend got super long-term contracts with the different utilitiesan they produce power in efficient ways and sell it back to the grid also, this one you don't look at on an earnings multiple, you look at it on cash available for distribution multiple. that's trading at 14 times a nice discount to the market. you don't want to make money the same way you did in the past this is probably a really great way to make money going forward.
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different, not hanging off the cliff. pump out the dividends. >> and based on the power generation hot bed of princeton, new jersey jenny harrington always a pleasure to see your smiling face on "worldwide exchange." we'll see you soon thank you. >> thanks. all right. you're very welcome. amazing. goes like that, doesn't it that does it for us here on "worldwide exchange. we will be back with a new rbi "squawk" and the gang picking it all up nt.ex have a spectacular day, everybody. on my routes on a daily basis i might have 1,100 to 1,400 stops which to me that's 1,100 opportunities to connect with my customers. everyday is another chance to bring a smile to someone's face,
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reacting today. kneel kashkari, the latest fed president calling for an earlier start to scaling back easing money policies. details straight ahead. plus, another busy morning for retail earnings. we'll bring you numbers from lowe's and target as well as an exclusive interview with target ceo brian cornell. wednesday, august 18th, 2021 and "squawk box" begins right knew. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. we're live at the crossroads of the world. right now i'm outside at the crossroads of the world sitting at times square where we are awaiting brian
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