it is 5:00 a.m. at cnbc and here is your top five at 5 stocks looking to limp over the finish line for the week the dow and s&p set to snap a two-week win streak and the losses, they look set to continue this morning. a big change at one of america's biggest companies as j&j says ceo gorske is stepping down. china's tech crackdown continues as it claims to be cracking down on privacy tesla talking chips as it looks to make new inroads in

artificial intelligence. it's not just the mega rich with taxes. the staggering stat on how many americans may be skipping uncle sam. it is friday, august 20th, and this is "worldwide exchange. good morning, good afternoon, or good evening and welcome from wherever in the world you may be watching us happy friday i'm brian sullivan thank you for joining us let's get right now to the markets and your money and how they are looking and the futures looking like they did yesterday, which was an interesting day we are seeing dow futures off 157 right now, s&p futures down about 19, but, despite the fact that we had big losses at this hour yesterday, the s&p snapped a two-day losing streak, actually squeaked out a very small gain same with the nasdaq buyers came in around 10:00 or 11:00 a.m., the dow did buck that ending the day lower as well all three major indexes are

looking at losses for the week the dow and s&p on track to post their worst weekly performances since not far away the nasdaq set to see the worst week since may yesterday, we had a tough week or tough morning guess what stocks rose. it's been a bad week, though, for oil. oil down about 6.5% so far this week crude oil right now at 6341. same goes for some big names in the oil group. exxonmobil, chevron, others, down more than 7% on the week. marathon down 8%, that's the trade right now. we want to see the weekly trade, but overall in the week oxidantal down nearly 15% this week. let's take a look at the cryptos as well. they've been volatile but we're seeing not a huge move in the cryptos, maybe a little gains. ethereum up about 2%

as the name of the show implies, let's go worldwide now juliana is in our london newsroom with a look at the early trade there and some of the top stories. good morning >> good morning, brian well, it's been a really interesting end to the week here in europe. coming into today's -- coming into yesterday's session european markets had outperformed their u.s. counterparts proving a lot more resilient throughout the course of the week. but that all changed yesterday we saw heavy selling across europe and in particular in the french market. luxury names selling off heavily. coming into the session today european markets are under performing the u.s. over the week and the losses are continuing the french market down a further third of a percent this morning. we have bounced off the lows, but more red on the board. yesterday the french market dropped about 2.4% pretty difficult trading period. the german market, the dax, down about a third of a percent the ftse 100 in the uk down

nearly 0.2%. we got disappointing retail sales data in the uk today july retail sales coming in much lower than expected. investors in the uk digesting that data. also, uk grossers in focus today. i want to highlight two names that investors are watching mark's and spencers. more than 10% higher the company liftd its outlook after its food and clothing divisions continued to outperform food revenue increased by nearly 11% and international revenue up 40% compared to last year. morrisons, the supermarket group, agreed to a sweetened 7 billion pound bid from private equity group cdnr. the value offers morrisons at a 60% premium on the deal price. as a result morrisons dropped its recommendation for a lower offer from fortress investment group. today investors seem to like what's on the table. shares up 4.2%

brian? >> a little bit of green on the screen not a lot else thank you very much. all right. back stateside let's get some of the top stories on this friday, including an unexpected leadership change at johnson & johnson. christina is here with that and more good morning >> good morning. happy friday johnson & johnson, though, announcing alex gorsky will be stepping down as the company's ceo. he says he's making the move set to take effect at the beginning of next year to focus more on his family due to his family health reasons after nine years as ceo, he will transition, though, to executive chairman he will be replaced by joaquin dueto who served as vice chairman and a member of johnson & johnson's board of directors he will be keeping busy. tesla, formally unveiling its custom chip in its data cent unveiled as part of tesla's a.i.

day was designed and built in-house as part of his dojo a.i. system to automate driving. that system is expected to be operational next year. elon musk unveiling tesla's humanoid robot prototype at the event. musk says the robot will be used for, quote, dangerous, repetitive or boring work that people don't leak to do. he said the machine will likely launch next year and china has approved a sweeping privacy law aimed at curbing wide-ranging data collection by technology companies. that law set to take effect on november 1st it comes amid frustrations within the government and in chinese society over online fraud, data theft, and data collection by domestic technology giants and that's why you're seeing shares of several of those tech giants posting steep losses across the board and that's been an ongoing development that we've seen across all chinese companies, especially even kyb etf. >> china cracking down on data

privacy issues there, but we'll see what, if any, moves are made here we'll see you in a few minutes thank you very much. >> thanks. all right. well let's get back now to the markets and what has already been a very turbulent week it's like day eight of the week, right. your next guest says fear not. while volatility likely set to stick around for the next couple months, stocks will ultimately prevail. tiffany mcgee ceo and chief investment officer and a cnbc contributor and last night, tiffany, you and i were both up late and you tweeted out and said, there are two things that investors should be focused on right now. what are those two things? >> first of all, it's good to be back i don't know how you stay up so late and get up so early i believe stocks are higher. you mentioned it at the top of the show it's harder to watch markets these days, especially what's been going on in the past two days, so many different factors,

delta, the fed, inflation, supply chain, and i think we have to recognize that a lot of these things are temporary, right. investors, you know, the six at home watching all this -- sitting at home watching this and cringing need to be thinking about these two things, right. the first thing is having a strategy and it does not sound really exciting, right, when we're always on cnbc talking about these, you know, really great names that are moving so fast and so far, but really, you know, having a disciplined investment strategy is a really, really important right. it helps you to make decisions about your portfolio in times like this. that's the first thing second thing is -- i'm sorry, the first thing in the strategy is to have a strategy, asset allocation, like 101 for professional ap asset allocation contributes a bulk of the return of the portfolio, so it's a very

important thing of mix of stocks and bonds and asset classes of style and growth and things like that then diversification, of course, diversification of your portfolio can really reduce the risk in your portfolio then we're thinking about time horizon, the longer the time horizon you have, more months, more years actually to recover and recoup those losses. that's the first thing the second thing is really thinking about themes, right so, you know, i like to kind of classify things in themes so i can wrap my head what's going on in the markets and what i want to buy in terms of buying individual stocks, mort exciting stuff, right, so i'm thinking about companies that can do well in both reopen mode and stay-at-home environment i'm calling these like the hybrid trade with the stay at home versus reopen trade, this is the hybrid trade and i put disney in this category disney is growing like a small cap company, right it doesn't matter what environment we're in, disney is

going to do well between parks and disney plus. names expected to grow faster than the index, chipotle in that category, brian. it's expected to grow 138% for this year. there we go. >> tiffany, you know, first off -- i would love to get up early as well and i love the optimism because it is important to remember as bad as the headlines are with covid and delta and the next variant or the next variant after that is, this will be over at some point. i love that macro optimism it sounds like you believe that even with concerns over, you know, quote, reopening, disney is a long-term hold. you know, there's more negative headlines that come as the fall comes, back to school, maybe another surge, maybe the final surge hopefully? >> yeah. i mean hopefully it is a final surge, but the good news is that we've done this before

businesses know how to operate in this kind of like lockdown environment and, of course, this kind of, you know, reopen environment and everything in between. you know, we've been here before, we hope that this bump is not as big as the bump last year, and, you know, we -- this, again, this too is going to pass >> yeah. we need to hear that because -- also not just from a human perspective and emotional perspective but investing perspective there will be a time when this is certainly behind us. also i want to refresh because you kind of threw it in towards the end and might have stepped on you, i apologize, chipotle, another name that you like. >> yeah, chipotle. i mean so when i think about how chipotle was really able to pivot in the beginning of the pandemic, you know, they had this robust loyalty program, customers are ordering from their cell phones, you know, in chipotle reported in the second quarter a spike in earnings growth of 1,765%

that is crazy. and the expectation is that for the entire year it's going to grow estimated to grow about 138% really kind of picking those names that are expected to grow faster than the index. >> tiffany mcgee, pivotal advisors watching cmd, dis and watching you, real pleasure to have you back on again have a great day and great weekend. thank you. >> you too take care. we got a lot more to do on this friday when we come back your big money movers including why shares of lordstown lordstown motors are in the news what it's like to road trip in one. we did it and hit the road and we're going to show you what it's like to take a road trip in a nontesla electric car. your exclusive weekly insider buying segment with one company you may never have heard about

having a board member make a $3.5 million buy the name ahead and a lot more to do when we're back right after this ♪ someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. ♪ ♪ i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone supplied and happy, proactively. let's workflow it.

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time now for your big money movers three key stocks let's go stock number one, applied materials topping earnings estimates in the second quarter and giving a fairly rosy revenue

forecast for the current period still. good, not good enough, the stock down 2%. stock number two, ross stores. its second quarter earnings blowing past estimates sales jumped 75% stimulus checks and higher vaccination rates helping to increase foot traffic. again, that stock down almost 5% and stock number three, lordstown motors, another new low for the electric truck make maker. the move after management wrapped up its annual shareholders meeting after ten minutes. executives confirming plans for limited production of the electric endurance pickup truck beginning next month, but provided no new information. the stock up nearly 3% but under $5 the stock is down 75% this year. ouch all right. on deck, it's the end of an era for baseball as the league cutting ties with one collectible card maker and the new kid on the block, bringing a

bit of a curveball of that decade's old thing today's big number, 881% that was the jump in global crypto currency adoption over the past year according to data by chain analysis. the companies that saw the di am,t increase, vietna ina,nd pakistan.

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welcome back and good friday morning. let us stay on a story we've been following the past year that is supply chains. now there are more headaches for global shippers. congestion and wait times are building at one of china's biggest ports due to a covid-related shutdown the third biggest in the country. it's unclear when the port, also by the way one of the biggest in the world, will reopen all this adds another problem for american companies looking to get their goods shipped to america. let's bring in now mohammad fadeal, vp for petra chem cancles and argis media. i understand this is not like last year, massive shutdowns for weeks or longer, but still, given the backlog, i mean any disruption, has got to be for lack of a better term incredibly disrupting what can you tell us >> absolutely.

thanks for having me, brian. indeed, after shanghai and singapore, this is one of the busiest container ports not just in china, but in the world they handle 60 million containers in the first half of this year. the terminal currently affected was closed august 11 after a positive covid case. belin is used as an alternative terminal in the last 48 hours the situation is fluid we understand that we're hearing from a lot of encouraging information from the original two weeks, but any opening up will likely be phased and done cautiously china takes a strict view of covid-19, with the delta being more transmissible a similar lockdown at a port impacted shipping line and petrol transports.

m they handle toys, electronics, appliances, christmas gifts and decorations. >> basically what you're saying is that as we've said before, by the way, only half joking, buy your holiday gifts now because they may not make it here. how long do we think or how much of a disruption do we think this is ultimately going to be? >> absolutely. looking ahead to december 25th, there's no simple solution, brian. this year has been tough supply chains for petrol chemicals and products are fragile and the shipping infrastructure globally has been put to the test. i'm sure even earlier this year your viewers will remember the iconic vessel wedged along the canal. for christmas, it comes to manufacturing, typically your he pe trol chemical products, the

closure is not ideal the product needs to make for the u.s. shelves in time for christmas, this is the window for chinese manufacturers. let's not forget we have six weeks before the china lay in october, so the supply chain situation is delicate, product cargo bound for europe and the u.s. in ten days we'll also see northeast asia potentially another disruption >> yeah. let's talk about it, because this is a story i think is a little bit big, not exactly, you know, on the front headlines and people can say why do i care about this the state at which supply chains and shipping is already disrupted, even if this is not the biggest deal in the world, any hit is, i think, a big deal. is that fair to say? given the way things are already, $20,000 for a shipping container when it's normally 3,000. >> absolutely.

brian, it's at an all-time high and this affects everyone. transit times are taking longer. we spoke about china the world has to adapt to the pandemic, but what i would also call hyper inflation in costs, we must recognize that normal sectors are immune to this and this has a direct impact on commodity prices and container shortages driven by congestion the u.s. as well closer to where you are, congestion has been building up in los angeles, the california and east coast. it's labor shortages, some of holidays, and climate conditions as i'm sure you've reported just today, northeast american polls are expecting tropical storm henry which could strengthen in mexico we see a hurricane which made landfall on the yucatan peninsula yesterday.

>> mohammad, it's an important story and we appreciate you coming on. have a great day and a great weekend and talk to you soon. >> thank you for having me. >> we've said it, get those christmas gifts now. we're not kidding. trust me in the meantime a check on this morning's other top headlines. including more on the dire situation still on the ground in afghanistan. philip men na is in new york with that and more good morning. >> good morning. yeah, we start with the chaos in afghanistan where the checkpoint to enter kabul airport has turned into a gauntlet for thousands trying to escape check out this video here. it appears to show a baby being handed off to troops and pulled to safety over a barbed wire wall the desperation is reaching a breakingpoint. let's turn now to tropical storm henri which could pose a big threat to new england later this weekend. that storm is expected to develop into a hurricane and based on the latest track, heavy rain bands from henri may be forming over long island and new york city by sunday morning and

then skirt dangerously close to new england. and with the wet weather, it's probably a good idea to stay inside this weekend. luckily for parents with young kids, paw patrol is ready to roll out on to the big screen this weekend the movie adaptation of the toddler sensation will also be available on paramount plus. that's it from here. brian, have a great weekend. i'll send it back to you >> all right philip, we will. given i have a young boy, i'll probably be at the movies this weekend. thank you very much. >> all right on deck, back to the office. maybe put that on the back burner as more companies say you can work from home for longer. we'll tell you the latest companies to say stay home for now. dow futures down 140 we're back right after this.

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. a week end to the week futures, they are down again, but could we get another thursday like turnaround today the rise of the musk machines and tesla going full blade runner and rolling out a robot plus, are you thinking about buying an electric car, but wondering what it's like to drive one on a long road trip? we've got your back because we did just that and we're going to show you all, ahead on this friday, august 20th. the dow futures down 127

♪ well, welcome or welcome back and good friday morning, everybody. just about 5:30 on the east coast. thanks for joining us here let's get a check on your friday money as stocks ended the day thursday different than they began it i remember, you know, 24 hours ago, when futures were down big, what, 250, down 300 on the dow buyers stepped in in late morning, the s&p snapping a two-day losing streak on thursday and squeaked out a gain, same with the nasdaq and dow. not the case it did end down a bit, down about 138 on the dow right now we'll see. look at the fair value, it could have a green open ultimately through the day. will you be back in the office this fall? well, maybe not. more big companies are pushing back their timeline. let's hear more about that and more christina is back with more key headlines. >> i want to know because i've

never met you in person, brian, so i'm wondering, will you be back i'll get to that answer that in a second. let's start with apple according to reports, it's delaying its mandatory return to its corporate offices until january citing rising covid cases. workers had been slated to come back starting in october then you've got charles "sqzab until after the new year, giving most of its employees a 5% pay raise to reward them for their hard work during the pandemic. ibm is temporarily closing its offices here in new york city due to rising covid cases. according to bloomberg only essential staff will be able to come into that building. the company has not indicated its plans to delay reopening other u.s. locations next month. bill ackman says he's ready to return the $4 billion he collected from investors for his spac in a letter to his pershing square investors ackman says he will make that move if

regulators approve a new vehicle that will allow him to continue to search for deals without the pressure of a definitive deadline for a transaction he added a lawsuit filed this week challenging the legality of his blank check company has hurt the prospects of finding a deal. major league baseball is ending its 70-year deal with tops to make trading cards sources tell cnbc the league is expected to partner with fanatics and the deal with tops wraps up in 2025 tops is expected to go public later this year via, of course, a spac deal. brian? >> yeah. watching all those cards there as well. let's talk back to the office as well i look forward to meeting you. listen, you're going to say what everybody i meet in person -- by the way, thanks to everybody who is so nice and kind out there. the first thing everybody says to me when they meet me, you know what they say >> how wonderful you are >> much taller than you look on -- >> oh. >> we don't like you that much,

but you are much taller than you look on tv so apparently on television, i don't know what i look like, you know, but again, but i look forward to getting back in the office, meeting you, seeing the team again, and eating -- i don't know if the cafeteria is open there. >> not yet. >> some of the world famous cnbc tater tots have you had any yet they're legendary. >> i have not. for those that come in early like us, 5:00 a.m., nothing is open absolutely nothing and i have looked -- i just had a few nuts at my desk, starving and i have to wait for tater tots clearly. >> yeah. i think it's -- it was 6:00 a.m. i think that it's open 7:00 a.m. >> yes. >> i believe i'll be back in the office next week i look forward to seeing everyone. >> that's a first given everybody else is slowing things down i look forward to it. >> i like to roll against the grain. everybody is in, i'm out everybody is out i'm in. that's how i roll, christina that's the beauty of brian

sullivan. >> talking in third person. >> i say to myself oh, my gosh. happy friday christina, thank you very much. >> you look tall bye. >> thank you i'm going to pay for that. all right. let's talk tesla, because they had their artificial intelligence day on thursday i need a little bit of that. they made a few headlines. first, tesla doing a very tesla-like thing and announcing its own microchip. also, maybe going full blade runner, saying they will build a human-like robot have no fear because elon musk says the tesla bots will be less terminator, maybe more c3po designed to perform manual labor, 5'8" and, quote, overpowered if necessary and apparently will not require tater tots for more let's bring in andrew hawkins, senior transportation reporter at the verge. andrew, okay, this thing has not

rolled out yet they haven't started building it who knows if it will ever happen if it does, is this a threat to all humanity >> that's not the way that elon musk was portraying it yesterday. as you noted he said that it could be easily overpowered, which i guess is some comfort. he also said that you could probably easily runaway from it too. the top speed of the robot would only be five miles per hour. if you could run faster than five miles per hour, i don't think you really have anything to worry about from tesla's new robot. he said there's going to be a prototype coming out next year we have to take that with a little bit of a grain of salt because things run on tesla time they don't always tend to meet their deadlines when they say they will. we'll just have to wait and see if this comes out when elon says it's going to. >> okay. andrew, i run maybe at six miles an hour, but guess what, i get tired. the robot doesn't. i can outrun it for short distances and then i stand with

my hands on my knees catching my wind and the tesla robot comes up and tear mics my head off. what else can you tell us about artificial intelligence day. the robot is going to get headlines. very musk if you will. tesla investors care what they're doing with the car was there any headlines around the car? >> so the robot obviously, yes, was sort of the splashy reveal at the end of what was a very long and very technical overview of what tesla is working on when it comes to artificial intelligence, the software that powers its full self-driving feature that it has uploaded in several thousand of its vehicles they're hoping to roll it out to even more customers that own teslas starting this summer. this is a feature that, for all intents and purposes, what tesla says, allows the car to drive itself under some conditions now the drivers need to continue

to pay attention, they need to keep their hands on the steering wheel and they need to keep their eyes on the road, so in that sense it's not a full autonomous car there has been some confusion around how tesla markets its products tesla has been the vanguard of pushing autonomy to its customers. a lot of other companies are working on autonomous vehicles as well, but they keep them limited to test vehicles, to employees that work at their companies, not to customers. tesla has shown a lot more willingness to push beta software on its customers and that's raised some scrutiny, some skepticism. we've got just this week there was a news about investigations into tesla's autopilot, why they keep crashing into emergency vehicles there were several democratic senators that came out and said they wanted the ftc to investigate tesla's autopilot. so it was a really interesting time to get this really sort of technical information dump from

tesla that i think a lot of people who are experts in the field of a.i. will be picking through in the days and weeks to come to find out more details. >> and we're showing video while you talk of people taking their hands off the wheel and smiling smugly, maybe don't do that, given some of that as well is this robot you think quickly, you think the robot is going to happen >> i think, you know, with tesla and elon musk you always have to hold out for the possibility that these things will happen. as fantastic as they sound, as absurd as he makes it ought to be and if you watched the presentation last night, you know, before he announced the robot there was a person dressed as a robot doing a funny dance on the stage and, you know, elon said this is actually going to happen, so you always have to hold out for that possibility. while there have been projects in the past that haven't happened, this could very well be something that appears at your door knocking saying hello

at some point in the future. >> you buried the lead you said funny dancing makes me think about the musk video from a couple years ago. there always seems to be some sort of weird dance on these stages andrew hawkins of the verge, we appreciate your time have a good friday thank you very much. >> thank you all right. so that is more on tesla the undisputed king of electric cars they've got basically nearly all the market share but every car company is either in the game or getting in the game rolling out their own electric cars or trucks. those cars will use a different charging network than tesla which has, of course, a huge headstart building out fast and convenient charging. somebody who is personally poking around buying an electric car, i had a lot of questions about charging, how fast is it, how much does it cost outside the home, how easy is it to find well the only way to find out, was to find out.

produc producer and i took a road trip to san francisco and recorded everything, every charging stop along the way and all the details and what we learned was that evs may be a real estate play >> here's the conundrum and opportunity around electric cars on longer road trips 43% charged. been here like eight minutes now what do we do? we're probably going to be here another 25 minutes it's hot the sun is beating down here in california the only sit down restaurant not looking so good. here's the point i think the opportunity around electric cars is going to be the infrastructure of human things to do, not charging. you can build that out easy. but having a place to sit down, maybe something to buy, place to shop, that is going to be the ultimate electric car opportunity. we looked across the road and the tesla super charging station had a roof on it i think it was a solar roof. the point is, it had shade

like eight or nine cars there. the owners seem to be laughing and talking to each other. if you're stopping there with two or three kids in 100 degrees for 45 minutes, you're going to get really annoyed really quickly. meantime we're watching people pull up, fill up their cars or trucks with gas in five minutes and drive off and kind of looking at them longingly. the stop took us about 40 minutes to add 50% of a charge listen, that's the key you need a place to stop, something to do on the road while the car is charging. the car was great for short trips, fast, fun to drive, whatever, but longer, maybe the evs are still some work to do on the infrastructure that is just a short clip. there's a lot more to our piece. i wrote up something on it as well on this road trip we took a couple weeks ago it's all available on cnbc.com the video showing all the details, charging times, costs, whatever if you've got questions,

hopefully we've got answers. sounds like a corporate slogan it might be. go to cnbc.com and check them both out and i will push them out on my space page. thanks but no thanks when it comes to paying taxes on the rise you won't believe the number of people that are paying zero dollars to the federal government robert frank is up with that coming up.

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at cvs. welcome back the old saying goes, there are three things that are certain in life, and one of them is taxes but maybe not so certain for tens of millions of americans able to avoid paying income taxes last year. robert frank joining us now with more on the story which always these kinds of stories, robert, they generate, shall we call it, a lot of passion from all sides. that's a nice word passion. >> lively debate brian, if you look at last year, you had high unemployment stimulus checks and the tax credits meant for the first time most americans paid zero federal income taxes about 107 million households or 61% of all taxpayers paid no taxes or got credits from the government, up about 44% in

2019 now no household earning less than $28,000 a year paid any taxes. if you look at the middle class, 43% paid no federal taxes. those numbers are expected to remain high even this year, 2021, 57% of americans will pay no federal income taxes this year it is expected to fall back to the normal rate of around 43 to 44% starting in 2022 in dollar terms, the top 10% of taxpayers paid about 71% of all federal income taxes and if you look at the top 1%, they paid a record 40%, which is twice their share of total income. now the number of americans who paid no federal income taxes has more than doubled over the past 30 years in 1990, only about 21% of americans paid zero federal income taxes prepandemic, it was back up to 44%. even those who don't pay federal

income taxes, though, do often pay payroll taxes. they also pay state and local sales taxes, property income taxes. brian, a lot of people say look, these people did pay taxes, some taxes, and that is true, but 61% of americans paying zero federal income taxes last year >> there's so much to unpack here and to your point, it will revert back, but still, you've got almost half the country with no net effective and that's the key. the words net effective. federal income taxes, pay payroll and state and sales and local, but remember federal taxes, income taxes, go to defense, they go to funding the fda, those things. people, robert, they have such a misunderstanding if you make -- i'm going to say something -- if you make $100,000 a year, have two kids and a mortgage, your federal net income tax bill is probably

zero i know people look at me, no way. look it up it's probably zero making $100,000 a year in des moines, iowa, or whatever. >> right between the standard deduction and that increase in the child income tax credit and those tax credits, look, when you look at what's going to happen in the coming years because the tax policy center which came out with this data said this is a one-time event that's going to revert back, but that assumes none of the tax credits including the child tax credit is going to remain if those remain and they may be part of the reconciliation bill, it could remain that half of the country or more than half the country does not pay for the general operations of their government and i think everyone, even on the left would agree that's a problem when a majority of americans are not contributing for paying for our government that creates all kinds of problems. >> but all you hear is, well, the rich aren't doing their fair share. i don't know, maybe they could

pay more, who knows, and every politician, by the way of both parties, gets up and says we're not going to raise middle-class taxes, it's hard to raise them from zero. state and local have gone up, yeah, but from a federal net effective, the center for budget and policy priorities, a left leaning think tank, has noted middle class federal income taxes are at all-time lows they've never been lower yet politicians get up and go we're not going to raise them. well, they're already low. i don't know why do i -- robert frank -- >> even you got emotional. >> you said to the producers i would be into this story because i get worked up and you were right. >> we all do >> robert, thank you all right. appreciate that. speaking of big money, our exclusive insider buying segment ho tbet. i peo here after the break. stick around

time for your weekly inside

b buying segment five big wigs that bought the most of their stock last week and interesting and new names this week. five to one. let's go according to insider score.com the fifth most insider buying elanco animal health the chairman bought $313,000 worth and pay attention, the ceo bought a bunch last week number four, ball corp insider buying worth $355,000. it was one of four different insider buys at ball this week stock number three, comscope holding, the chairman buying $991,000 worth of the digital networking company the ticker comm. the second most insider buying this week, pfizer, buying $1.39 million worth, matching a buy of similar size in january. really $2.8 million by the same insider in about eight months. watch that space

and the most insider buying this week is a big $3.5 million buy at tivity health who? never heard of them. it's a franklin, tennessee, health company that has brands likesilver sneakers and prime fitness. this is the board member's first ever inside buy. tvty elanco, ball, comscope, pfizer and tivity health. we do this almost every friday and only see it here let's stay on stocks and your money and bring in julien, btig's chief equity and derivatives strategist it's a pleasure to get you back on we've been a little bit weak the last couple days not making too much of it we haven't had a 5% downturn in the s&p since all the way back in october do you think we will finally get one? >> we think it's likely, brian

look, be you look at 2021, buy and hold investors have got to be very pleased so far, and frankly, that's against the backdrop of the last several years higher volatility. for us, when we think about the last month or so you had these elements to combine that make it likely you're going to have a little bit of a pullback here. essentially what we've seen is the volatility index which we're very sensitive to rally at the same time you had the s&p 500 and the nasdaq rally together. that happened last august. you pulled back in september it's happened on several other occasions, essentially a pull back when you combine that with the michigan sentiment data that was surprisingly weak last friday and saw retail sales come in weak and some of the housing data come in weak, while the fed is still considering tapering, which we think, you know, perhaps they should have started already, but they're likely to do that before the end of the year, we put it all together,

with geopolitical uncertainty, equals the potential for a pullback >> yeah. i mean john najarian was on yesterday and i tweeted out i thought the rise of the vix and market weakness did not have as much to do with the fed as geopolitics or u.s. politics would you agree with that and feel free not to >> well, it's difficult to disentangle. it's one of these times where again, you know, we looked at the first week and a half or so of august expecting typically quiet conditions that we often get prior to september, which tends to be the most volatile month of the year, but all these elements came together and we would, again, focus on the michigan sentiment survey. when you've had drops like that in the past and if you think about 50 years worth of data, this is the seventh largest monthly drop on record you've had volatility follow those other six instances. to us, frankly, if you're a long-term investor, this is something you should be patient

and be willing to think about buying if you do get this pullback >> you know, you just heard the insider buying, activity health, a sideways health care companyrs but from a traditional health care company perspective, everybody seems to hate it they like the vaccine makers and that's about it. why is health care being thrown in the trash heap? >> i think, brian, there's been this overriding concern that legislation in a democratic run government and in particular might be, you know, more regulatory with regard to health care the way we think about it right now is that you're trading at a significant discount, but health care has two very important aspects to it. it tends to be immune to changes in interest rates and more importantly, because of the domestic focus, tends to not care about geopolitics we think that health care is one of those sectors you can buy into this pullback should it

occur. >> buying health care and pullbacks should it occur and a healthy pullback, julien emanuel, it's a pleasure to have you on have a great weekend chat with you soon >> thank you all right. folks, that's it for us here on worldwide exchange on a friday leaving you with dow futures down 150 points. like yesterday, anything can happen i hope you happen to have a great weekend. we'll see you monday morning take care.

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good morning futures under pressure again kind of representative of what we've seen this week, although the worst case, again, avoided yesterday. the dow and s&p are on track for the worst week since june.

crude is now down 13% just this month in august. we're going to show you what's moving right now china's tech crackdown intensifies overnight. the government passing a new law that imposes tough new rules on how companies collect and handle users' information it's really dare i say not what i do, a live report from beijing. the story of the morning has to be this, this dance performance with part of tesla's artificial intelligence presentation we'll explain what's going on here, friday, august 20th, 2021. "squawk box" begins right now. ♪ good morning welcome to "squawk box." i'm melissa lee with joe