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tv   Worldwide Exchange  CNBC  September 10, 2021 5:00am-6:00am EDT

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it is 5:00 a.m. in new york. here is the top five at 5:00 on friday a bad week with the strong end maybe. wall street trying to stage a comeback rally after a selloff all week futures are higher our patience is wearing thin president biden's plan to force companies to have their workers vaccinated or else laid off. this as covid cases rise and unemployment benefits run out. and it is not just covid call it direct diplomacy president biden with the first one-on-one phone call with
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china's xi jinping since february details of the call ahead. inflation. getting fired up what is behind natural gas surge and why it matters to you. two fed heads say they are selection their stocks after outrage grows with the member of the fed actively trading. it is friday, september 10th this is "worldwide exchange. good morning, good afternoon, or good evening welcome from where ever in the world you are watching i'm brian sullivan thanks for joining us. a lot to get to on this friday money and your markets are looking to end a week strong dow futures up 200 nasdaq up 53 all this as the dow and s&p logged the fourth losing session
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in a row on thursday the first time that happened since june dow's 3m and j&j down 4% this week rough week for the transportation stocks as well. coming down four down days in a row is kansas city southern and jb hunt. on peace for the worst week sine june on pace for the longest losing streak since march of 2020 transports, more than any other group, are seen by many indicgh happen. big news in politics president biden holding the first one-on-one phone call since february with china's xi jinping. this as the representative with
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the u.s. and chinese governments remain strained. let's go to eunice yoon live in beijing with more. >> reporter: good morning, brian. the good news is the two sides agree the talks were candid and neither side wants a conflict. the bad news, nothing else was agreed upon. the chinese side emphasize xi jinping is repeating the stance that serious difficulties in his words in the relationship are due solely to the u.s./china policy the u.s. is solely to blame and future cooperation needs to be based on what is the respect of the core concerns. from the chinese perspective, that means the u.s. doesn't have any discussions on internal affairs of beijing hong kong, taiwan and shenzhan
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in the west. president biden agreed to greater want applicant and dialogue from the u.s. side, a different picture. u.s. officials are non-committal about future dialogue. one issue is that delaying tactic on taking further action. u.s. officials said one reason why president biden wanted to initiate this call, which was 90 minutes, is because he felt talks at the lower level, brian, weren't making enough progress and given the exchange here and the centralization of power of president xi, he thought a personal touch at the highest level might be what is needed to break the stalemate. >> yeah, it sounds like not necessarily a lot was discussed.
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of course, a lot of things we don't know you talked about things not being as nice as they were was it the economy or global trade? was there a more macro idea of topics shipping containers? covid? what did they talk about >> reporter: they said it was a broad discussion about everything that you just mentioned. everything from climate change, pandemic and economic issues i think maybe what the u.s. would like to see from china would be if the chinese would separate certain issues so they can move forward, the two sides can move forward on climate change or afghanistan. given the comments from the other senior leaders in china, it doesn't look like that will change in the past couple weeks, senior leaders from chinese don't really see a way in which the u.s. and china can cooperate
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given the overall stressed environment. you know, u.s. wants to see cooperation on afghanistan or cooperation on climate change. from china's perspective, if you want that, you have to make some moves to acknowledge that we have the red lines and you also agree to china's red lines >> yeah. you talk about climate change. we talk about it here, eunice. so many of the most polluted cities are in china or india the government has work to do. at least they are talking. eunice yoon in beijing thank you. let's turn back to the u.s. markets and their money after the dow and s&p posted the fourth straight day of losses. joining us is jill carey hall. jill, pleasure to have you on
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"worldwide exchange. i noticed your s&p 500 target is below where we are right now for this year. for 2021 why is that and what do you expect the rest of the year? >> that's right. we are still bullish on the economy and economic growth and i think this could be a good period for the u.s. overall. for the market, we've seen last year and a lot of the gains were led by multiple expapanexpansio. now the everytharnings are comig through. equity sentiment has grown euphoric based on the measures we tracked, valuations are elevated there are risks from here. corporate margins have held up well despite the mention of
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inflation. the inflation mentions have sky rocketed on the earnings calls that could be a headwind in the second half. if the fed starts to taper, a lot of the fed liquidity market gains we have seen post-crisis could slow that means the fed could be tapering and we calculated this could suggest upside to the s&p 500 through the end of next year down side risk in 2021 next year we think there could be recovery. we are looking for modest gains. we are seeing better areas within the equities within buying the s&p 500 overall >> the small and midcap space are tied to the u.s. economy and less tied to etfs. if so, where in particular, jill, do you see more opportunity? >> that's right.
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the s&p 500 large cap index has grown concentrated in a lot of the mega cap growth stocks they are not sensitive to the back drop of the strong u.s. economy. provided we don't see a further surge in covid cases and weakening macroeconomics back drop, we expect small caps could do well. they did fairly well earlier this year of we saw a pause and pull back and saw performance in mid-august. the segment is tethered to cap x spending cap x and infrastructure and u.s. reshoring story small caps tend to fare better than larger stocks in the back drop and tethered to services spending the other thing is they are still based on where valuations are relatively inexpensive
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versus large caps. valuation doesn't talk about the short-term long term, small caps suggest we could see gains if you are a long-term investor for large caps, the framework is pointing out negative annual returns over the next ten years. this is the first time our models have been saying that since 1999 >> wow the first time i've heard that big investors and big stocks don't want to hear that. you are saying there are opportunities in the smaller way. jill, is it u.s. buy small cap and mid etfs and let it roll or are there some within the small caps within that group that will outperform >> within small caps, cyclical areas have not been pricing in the recovery that we have seen some of the more economically sensitive sectors have tended to look attractive in our work.
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i would say beyond small caps. within the large cap equity market, we some opportunities. within the s&p 500, we stick with inflation protected yields. given the low rate back drop we're still in, but the fact inflation has been rising, you want to look for stocks that have offered healthy yields, but growing dividends and sectors that can benefit or not hurt by inflation. areas like energy and materials. financials has been growing dividends and parts of real estate we think there are opportunities within the market, but certainly more selected pocket this time >> pretty eye opening stuff on the s&p 500. we are watching small and midcap jill carey hall. thank you very much. >> thank you you're welcome when we come back here on this
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busy friday, your morning big money movers including that sky rockets stock. the mystery chart name revealed. coming up. plus, more on president biden laying out a new strategy to try to fight covid. a live report from washington ahead. if one wasn't enough, get ready for a second batch of this week's biggest insider buys as one ceo is letting big on his own company to the tune of $1 million buy. that video is a little bit of a hint yeah, nice that's a good dog. we're back dow futures up 200 right after isth
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all right. time for the big money movers on friday morning first up is a group of stocks. uber, doordash and just eat. the group are suing new york city over the ordinancethat caps the amount they can charge restaurants to use their platforms. new york city imposed that during the pandemic. doordash and grubhub control one-third of sales in new york stock number two is affirm the second quarter sales beating forecast helped by growth of volumes and goods with the buy now and pay later services affirm shares doubled this year.
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and finally toyota cutting annual production target by 300,000 vehicles. partly because of the slowdown of part suppliers in stvietnam n malaysia and the chip shortage toyota will reduce are production by 70,000 this month and 330,000 in october still on deck on "worldwide exchange." some first responders that we hailed as heroes, rightfully, after september 11th are still dealing with chronic health problems 20 years later. we will take a closer look at the ongoing fight of the true heroes when "worldwide exchange" returns. t 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 but at a time like this, aren't you glad you can also just swing by to pick it up?
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i was completely disoriented. it started to clear and i walked down to the river. it took me some time i got down there in time to see the south tower disappeared. the north tower then did the same thing it rumbled and blew up and disappeared. it was something you don't forget something you don't forget >> all right
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welcome back asthma, cancer, post traumatic stress syndrome. problems that many of the first responders of 9/11 are dealing with 20 years later. in fact, there's a troubling stat more emergency workers have lost their lives from illnesses related to 9/11 than from the attacks themselves ylan mui spoke with one police sergeant about his own trouble >> at that time, i wasn't thinking about protective equipment. my mind was, we were invaded my concern of my health was down on the list of the concerns. >> reporter: on the day of the attacks, tom wilson helped stunned survivors cross the bridge afterwards, he spent months working on the pile and he contracted health problems. >> i'm coughing up phlegm.
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i would get pneumonia. that's when i got concerned. then in 2008, my tongue cancer diagnosis. at the hospital, i had a young daughter newborn. she had to breast feed up there in the waiting room while i was in the hospital. i had a tracheotomy. i was fed through a liquid through my nose tube i have five kids >> reporter: 1,800 names etched in the wall at the 9/11 responders remembered memorial park in long island. dedicated to those who died in illness after the attacks. wilson knows many names. >> he retired and died of blood cancer >> reporter: what pains him the most is not the sacrifice they made or his ailments, but the memory of the pile.
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>> i think back. it haunts me of what i missed. now the remains there at the landfill the final resting place of the heroic people who with went to work that day. heroic first responders who responded. never been recovered >> reporter: talking can be physically difficult for wilson. it is therapeutic. he is hoping his story will help others suffering from 9/11 health problems that they are not alone and there is someone to reach out to. brian. >> okay. first off, every one of the women and men need the help. they have for 20 years the ones that are getting help where are they finding it? where are the best places for anyone out there still struggling to go
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>> reporter: so wilson is part of the group called the feel good foundation. they are the organization that helped get that 2010 law passed that ensures the first responders are covered by the victims compensation fund for the health problems. they worked with jon stewart that group that insured the fund doesn't run out of money until 2090 they will connect people going through this to share are their story and struggles and find support from one another ylan mui, it is so important to share the story. i appreciate your reporting on it still people out there who need help there are kids now that are 20 years old and 23 years old that have never known their mom or dad. it still resonate. ylan, thank you. outside of that, let's check
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on the other top headlines, including potentially good news amid the chaos in afghanistan. frances rivera is in new york with that and more frances, good morning. >> reporter: brian, good morning. we start with the justice department suing the state of texas. challenging the state's restrictive law that bans abortions after six weeks of preg pregnancy. the attorney general saying it is unconstitutional. the doj says the law denies women to seek an abortion and blocks delivery of federal health care. the taliban will allow international flights to resume at kabul airport we have seen evidence of this. the first time since the withdrawal, a plane left kabul it is proof it would secure cooperation of the taliban and get americans out of afghanistan. and the major tennis final between two unseeded players
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radanacu will meet leylah fernandez. and tom brady scored the first nfl touchdown of the year. a late fumble recovery led the cowboys to take the lead with two minutes left that was enough time for tom brady to drive down the field and the succop's boot. you know, for us early risers, it is tough for the late nights now the nfl and football is back brian. >> packed house and the seat and ticket costs there, frances, stub hub is $300 and up for the worst seats. i think it is safe to say tom brady is paying off for tompa
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bay. frances, thank you. >> sure thing. all right. have a great weekend on deck, facebook and the small business round table they out with the latest global state of small business numbers. hear what more than 35,000 business leaders across 30 countries have to stay with the state of the recovery and return to work and more a "worldwide exchange" exclusive. it is coming up. all of the futures are up nicely dow futures up 185 we are back right after this
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president biden saying get the shot or else saying companies will have to wo force millions of workers to get vaccinated or lose their jobs. >> we have been patient. our patience is wearing thin forget oil, lumber or crypto why natural gas is the latest hot commodity. closing in on levels not seen in more than a decade plus, caving to pressure two fed heads say they will sell stocks after outrage of one federal official who is actively trading his account. it is friday, september 10th this is "worldwide exchange" here on cnbc
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welcome or welcome back. good friday morning. thanks for joining us. i'm brian sullivan appreciate you being with us here is how your investments look stock futures are bucking the trend. pretty much every day in this holiday shortened week they are up. dow up 175 nasdaq up .30% a lot of green on the screen right now. it is a similar global story around the world, all of the major asian markets are up japan remains pretty much the hottest stock market in the world. rising another 1.25% japan just truckcrushing it. european markets are in the green. the markets look good and hopefully this is good as well a second weekly insider buying
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rundown. remember, we did one wednesday that was last week's data because i was off friday right now, let's go through the top five insider buys of this week and reminder this is an exclusive here to "worldwide exchange." a courtesy from insiderscore.com stock five, terminix ceo buying $250,000 worth. the stock has dropped. number four, texas capital bank shares ceo buying $500,000 worth. also note, chief risk officer bought $249,000. two insider buys transdigm. ceo buying over $500,000
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stock number two veritex holding. vvtx director buying $537,000 adding to an earlier buy for her earlier this year. despite the name, it is a bank in texas and the most insider buy of the veh week petco. the ticker is woof the ceo buying over $1 million that adds to the already large he can po exposure to the stock and above the ipo price. terminix, texas capital bankan transdigm and veritex and petco. two of the buys this week are texas-based banks. what do they know what will happen with the economy? we will find out
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outside of that, president biden announcing sweeping mandates for vaccines affecting government workers and contractors. one prong of the multi-facetted approach of fighting the covid surge. tracie potts is joining us >> reporter: the threat of lawsuits already the president cannot do a national vaccine mandate, but changes affect millions of people, especially working americans. president biden running out of patience with 80 million unvaccinated americans. >> our patience is wearing thing. your refusal has cost all of us. please do the right thing. >> reporter: his six-point plan is mandatory vaccines for federal workers or contractors
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weekly testing doubling fines for people who don't mask and low cost testing available this week. >> this is not about freedom or personal choice. it's about protecting yourself and those around you >> reporter: employees who don't comply could face fines or be fired. >> anything we can put in place to make people feel secure to visit my store is the best thing for my store >> reporter: the government is urging states to vaccinate teachers and do more testing in schools. j outbreaks have closed schools in 35 states. the white house anticipating lawsuits the republican national committee is first in line deaths from covid is up five times from last month. fda has yet to approve a third po booster. >> it is affecting every age
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group, race, everything. >> reporter: as the covid pandemic overwhelms the hospitals, the government is putting pressure on millions who choose not to get the shot the plan also includes more help for small businesses, brian. >> tracie potts, thank you, for everything back now to the markets and natural gas prices pulling back slightly today after rising more than 2% yesterday to close above $5 for the first time since february of 2014 right now, it seems like nothing can stop run away prices which nearly doubled this year as production rates and unable to keep up with strong demand in the u.s. and around the world as well as pipeline shipments to mexico let's talk about it and get insight with emily mcclain
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emily, thanks for joining us a massive inflationary because natural gas is used in everything if you had to pinpoint one or two reasons for the surge in prices, what would they be >> yeah, it's tough to pinpoint that to one or two reasons i would say you have to take into account the market fundamentals here. we have a tight market and largely driven by the limited supply not only domestic, but globally. that is what is driving the prices up given the fact we have increased demand and real supply crunch globally. we also anticipate going forward our expectation for winter is questionable if we see a mild winter, we could potentially see some relief in pricing. that is really the big question
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here sd here >> it certainly is, emily. you look at the excess storms and the fuel for all power plant generation how much is the weather contributing >> yeah. that's a great point you know, i think this year specifically, we're really looking to the weather forecast much more so than previous years. largely because of the tight market we're seeing. rystad energy is forecasting a tighter market due to the storage inventory levels that we're seeing going into the winter season. right now, the eia is reporting 2.9 tcf in inventory levels. those levels at 3.5 in october by the end of the year, by december, we are looking at 2.7
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to 2.8 tcf we are already going to be near five-year minimum or below in the u.s. abroad, we are looking at 20% below the normal five-year average in europe. those inventories will need to be back filled starting now. we have seen this upward tick in pricing, we have seen a lot of hesitation in order to begin infilling. there is not a lot of interest given the prices right now >> how much, emily, of this is hurricane ida related or transitory versus longer term trends on production and demand? >> yes, so hurricane ida has impacted supplies. particularly in the gulf of mexico region. if you take a step back and look a couple of weeks ago, we since
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have seen prices increasing. regardless of the impact of hurricane ida. so, there are some effects we are seeing on the gas price. it is not the only driver for why we're seeing these increases. it is more related to not only the supply crunch, but increase in demand globally and that need for gas from the u.s. abroad >> and we think we have it bad here, emily. the european markets are paying three times this asia, importing a ton of liquid natural gas as well. they are paying huge prices. do you believe prices will continue to rise from here i'm old enough to remember when natural gas was double digits. when you have been at $3 forever, $5 seems high where are we headed from here? >> yeah. that's the question on everyone's mind, right it is very dependent on the
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winter situation we should see in the coming months if we have a winter similar to last year which we saw below average temperatures again and a real strong winter, we're expecting to see a tight market next year and prices will likely continue to remain firm in the u.s., but also in europe as well as asia. that's if we see a strong winter coming up. if it is a mild winter, we might see relief in the prices here and abroad really, you know, if we look into 2022, there are about 20 million tons of new supply from lng added into the market. that will also add to the relief then, you know, really that's going to help drive down the catalyst we are seeing in the upward prices right now. >> well, if it stays hot for the
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next month or two and gets really cold in the winter, emily, safe to say a lot of americans will have sticker shock on air conditioning and heating bills. emily mcclain, thanks for coming on take care. >> thank you you're very welcome. coming up on wex what small business owners are saying about hiring and the pandemic an exclusive "worldwide exchange" report ahead. before we head to break. harvard university will stop investing in fossil fuels and instead use the $42 billion endowment to the green economy in a letter posted to the university web site, the endowment has no interest in the companies investing in fossil fuels. as we talk about natural gas prices soaring.
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and party city plans to hire 17,000 seasonal workers for the halloween buying season as well as full-time workers at the manufacturing and distry distribution centers the hiring on september 17th and september 18th. and robert kaplan and eric rosengren will sell the holdings over the concerns of trading last year. fed heads say the difficuvestits will be comel kcomplete by the f the year the two pledging not to trade stocks anymore while serving in the current rules. we're back after this. money ma) how do your clients know that? (naj) because as a fiduciary, it's our responsibility to always put clients first.
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joining us for a look at the recovery and what needs to be done is john stanford. chairman of the small business round table. john, thanks for coming on "worldwide exchange. an important topic here. how are generally american small businesses doing right now >> good friday morning, brian. thanks for having me on to talk about the important data they are sffrustrated we are entering the second year. small businesses in the united states are wondering when they will catch a break as the report showed great upticks. this data came from 35,000 businesses in july that was before the large number of impacts from the delta variant or dtv would be felt by the small business owners. they are feeling the return of may or june of 2020. we have to remember the support from the federal government are by and large gone. employer retention and tax
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credit ppe has entered forgiveness. small business owners wonder when to return to normalcy we stretched what the even tremend the entrepreneur can handle. for those engaged in digital commerce, we have seen success underneath the numbers and small good news is a lot of worry and fear and a lot of problems for women owned and minority owned businesses that are not being addressed. >> i think looking at the data, the troubling stats is 60%, 6-0 percent of businesses had trouble paying basically day-to-day expenses. >> yeah. we were disappointed and not surprised to see the cash flow remain the number one concern for small businesses they are having trouble making regular mapayments
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you have to remember how many businesses got through the last year to 18 months was the partnership that ran through the u.s. government. the programs are coming to an end. we talked about the increased cost of natural gas. that is felt by every small business owner that operates a restaurant or business the cost of the businesses are going up they still haven't been able to feel they are open to consumers. that is a real concern >> yeah, it certainly is john, quickly, is there somewhere we can see this if small businesses want to look for more data? >> absolutely. dataforgood.org and small business round table thank you, brian great to talk to you syou. >> thanks, john. these are your neighbors support small business all right. coming up, what the fed is really saying about the state of the american economy and the
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future of its easy money policies it may be different than you think. the rbi will tell you why. if you have not already, you can follow our podcast if you miss it every day, you can follow it on the podcast platforms. dow is up 200. we're back after this. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
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today's rbi is going deep into the numbers all kinds of numbers because there is so much interesting stuff going on right now if you take a peek under the economy's hood let's run through the random, but interesting stats happening right now. the fed is actually a great place to get some. yeah we'll tell you why according to data trek, the fed mentioned supply chain disruption 29 times in the beige book that is up from 17 mentions in july and 15 from march there are now 26 hits from the
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fed on labor shortages up from 22 in july and just 4, 4 in march 4 to 26. this last one goes to exactly that the job openings and labor survey showed a record of nearly 11 million open jobs in america. that is more than people actually looking for work. in fact, according to data trek, 126 job openings for every 100 unemployed workers this is not thefirst time we had more jobs than people. in fact, that was the situation just before the pandemic hit, too. if you care about the federal reserve and what it will do with bond buying and interest rates and the taper, the regional feds surveyed for the beige book may have tipped their hand the economy is trying to boom, but it is held back by things
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largely out of its control pay attention to those numbers going forward. the fed's words matter random, but interesting. speaking of interesting. jill garvey, senior strategist with huntington private bank is joining us jill, we will get into a couple of stocks in a moment. do you have a macro view of the economy or the fed and what i said they sound worried i guess the good news is the taper is not going to happen for a while. >> good morning, brian great to see you we think the taper could happen later this year. rates may rise in the second half of 2022 i want to emphasize our outlook, brian. we favor equity. you and i have talked before we are dip buyers or opportunistic buyers the volatility in september has given us an opportunity to take cash our clients have from business sales and putting it in
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the market we are investing for the post-r post-r post-recessionary environment. we focus on broad asset class. we want both growth and value. we are bond light. we think where yields are, we meet our clients and want to have higher returns. >> you know, we did a cnbc event a few months ago the guests loved the stock dan veru loved the stock that stock is dhr. daniher. what is it about the company that has smart people loving it, but the market not giving it the love it deserves >> if you look at the unde underlining interesting, there is a lot of opportunity for danaher to grow. we are looking for volatility so
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we can buy in not only t danaher, but booking is another company that we really like. consumer discretionary even with the grand reopening, even if it is slower with the delta variant and concerns about the fed and inflation. it is stubborn right now we think there is still a lot of opportunity and we are open mysticm apartm optimistic on the equity market. >> i watched the football game last night that's why i look like this. there was a commercial for prudential that is a stock out there aggressively lobbying for itself >> absolutely. again, our equity analysts are
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looking at the stocks and looking to be opportunistic. brian, we will hear more information about taxes. hopefully coming on monday investors are nervous. i don't know the market priced in the corporate tax increase. as we have seen a rise in the client portfolios, tax efficiency and taking gains is something that investors should be concerned about we are certainly talking to clients about that and taking gains when we may know what the rate is versus next year when the rates could be higher. >> danaher and booking and prudential we love fridays on "worldwide exchange." thank you for being on, jill have a great weekend. >> thank you thank you all for being with us today and this week just a reminder, tomorrow is the 20th anniversary of the attacks of the world trade center, pentagon and united flight that
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laid to rest in pennsylvania nearly 3,000 people lost their lives. kids today that are alive that don't remember their mom or dad. give your family a big hug this weekend. they are going through so much god bless everybody. especially those that ran into the towers that day and some of whom were not able to run out. none of us who were there or here now will ever forget them or their bravery have a good weekend. the personal loan from sofi helped me consolidate my credit card debt into one simple monthly payment. debt free! thanks to sofi. ♪♪ hey look. we're twinsies. at cvs, flu shots can be free, safe, and quick. so the whole family can get them. now we're twinsies. get $5 dollars off $20
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with each free flu shot at cvs.
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good morning stocks looking like they will bounce back from the four-day losing streak. we'll show you what is moving in early trading. president biden saying get
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the shot or else telling employees that they have to force millions of workers to be vaccinated or risk losing their jobs also new this morning. the president holding his second call with china's president xi we will take you live to beijing. it is friday, september 10th, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. it's friday. we made it to friday if you are checking things out this morning, it looks like green arrows with the equity futures. it doesn't make up for the week. dow up big 172 points s&p up 16. nasdaq up 45

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