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tv   Worldwide Exchange  CNBC  December 1, 2021 5:00am-6:00am EST

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it is 5:00 on cnbc your top five @5 the futures are higher after the pandemic and powell-led selloff. president biden considering stricter travel restrictions and testing. this as the spread of a new strain omicron and what he sees ahead close but a big day for merck as the fda narrowly backed its
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covid treatment. and a c-suite shake-up something unusual this way comes as apple stock pops in the middle of all the volatility it is wednesday, december 1. good morning, good evening wherever you might be watching welcome to this first day of september. dow futures up 300 points. s&p and nasdaq are doing better. nasdaq futures soaring the dow and s&p seeing their
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second losing month in the past three. small caps even worse coming off their worst month from when the waend began in march of 2020 as of this morning, 10% off the high even worse, 120 of those are 20 or more below their peaks. big ones discovery, gap, las vegas sands, twitter, disney, even boeing maybe there is better news the s&p hit a lower low. higher volume. that may be a good sign of the
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washout coming up, we'll show you something of stocks. just below 1.5%. yesterday, markets had a double whammy jay powell talking about a so-called faster pace of a taper. >> economy is strong and pressures are high it is appropriate to consider wrapping up the paper of our asset purchases which we announced at the november meeting, perhaps a few months sooner i suspect we'll discuss that at our upcoming meeting >> some on the street did note jay powell's new aggressive stance kind of coming out of the blue and very soon after the confirm operation to a return.
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the worst of the worst yesterday for oil. down still in a month coming into this morning. gol goldman sachs saying oil may be near a capitulation. in the meantime, we'll see a check of the early trade heading it to our friend in london juliana. >> your yan equity markets starting december on a high note as you can see here, the
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german,ity an yan and ftse market in france, the cac 40. the swiss market lagging a very broad based rally also broad based just one sector trading now. that is utilities most defensive part of the market travel and leisure up nearly 3%. basic resources up along commodity with a boost oil and gas and banks. clearly investors taking a more risk on. dropping about 6.9%. outperforming the markets. still a down day putting a little more money into the market >> they are.
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to this morning's and this week's top market and news about omicron and what we know and what we don't. >> still a lot we don't know the biden administration considering tightening travel restrictions over concerns of omicron. new rules could require anyone entering the u.s. to test negative one day before their flight one day before the return to the country and retesting three to five days and imposing a seven-day quarantine for all travelers including u.s. citizens even if they test negative talking to a white house official, discussions are ongoing and no final calls have
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been made just yesterday >> fda panel narrowly endorsing the use of merck's treatment pill and whether it could help the virus mutate it needs a final authorization. and the pfizer ceo confirming his company has submitted a request to the fda to expand the emergency use authorization of the booster shot to include 16 and 17-year-olds brian. >> we are going to get a little more of that or alan ty viral. close vote but it did go through. >> they started off saying everyone be civil in this discussion it was likely to get heated.
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>> yeah. a lot of passions on both sides which is not something you see a lot of skeptics still out there. but it did pass. thank you. >> the trading day nearly across the board. moving higher. apple rocked out a 3% gain even as the rest of the nasdaq tanked some suggest the move is kind of like a flight to safety calling apple a type of a bond what should you be doing now maybe on a macro level, nothing is the best move joining us now, executive vice president at cic wealth.
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welcome back i assume that means you are telling your clients, remain calm but also don't be throwing a bunch of money at the market thinking that dip is going to bounce >> yes and no. i think it is interesting you started off talking about the number of stocks that are down 10% on the s&p. we are likely to be on the same course there is no way the faang trade will tib to push and push which
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i've heard it alluded to we've been telling people this is the reason we preach diversification that if you were to try to pick the best sinners out of the s&p, you will likely pick the wrong ones by picking the same names >> when people don't know what to do, they fall to what they know when they don't know what's going on in the market, what do they do?
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looking at 2023. the big theme will be health care thinking about the advancements that have been made. all of these things where they've stepped on the gas pedal we've seen so much opportunity there untapped so far. a lot of the same technologies to fight covid, they'll get a way to monday ties and rather than sell that at cost over those couple of years. >> remember, there's a lot of bad stuff outside that rates may be up as well.
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malcolm playing the longer term trend. we are your kind words and guidance appreciate you getting up early. see you soon >> some perspective on omicron from top ranked analyst and what he has to say. and much more on jay powell's suddenly sufficienter talk later on, musk throwing a little shade at apple over one of its more controversial accessories >> d d futures up. oil up what's going on? we are back after this
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welcome back three or four stocks moving on the day. number one, box. up more than 40% year to date. stock two hpe. missing sales estimates for the quarter. investors took another look
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bought more than 1 million shares snapg up more than 1 million these are really good. long form. lots of questions. and is elon musk throwing shade at apple over the $19 polishing cloth. musk taking to twitter to tout his own possibly overpriced accessory. blow the whistle don't waist your money on the
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silly cloth, buy our whistle it does have a striking resemblance to either an ancient dutch clog or the cyber truck. you pick coming up, robert frank is here to break down some of the big stock sales. up big after this.
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you can see the month of december will kick off in a such different way. right now, let's check more with philip mena. >> good morning. today, the supreme court will hear a mississippi case opposing roe v. wade. roe could be overturned and laws could be redefined cnn has suspended anchor
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chris cuomo suggesting, quote, a greater level of involvement defending his brother andrew cuomo from sexual assault allegations. the doctor is in dr. oz announced a bit for the senate seat in pennsylvania. he's criticized washington's handling of covid-19 he's received some backlash for controversial comments he's made and lebron james has been placed on the nba covid protocol list
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he is vaccinated and there is no word of what is going on or how he could be out if you have not already, follow our podcast. up early in the east coast check out "worldwide exchange. stock futures higher across the l ard. oiup more than 4%. we are back after this
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>> the market pointing to a jump even oil is soaring. a new article out of israel suggesting more about the new variant and positive new developments around treatmentfront.
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let's get right to it. reason to believe this day may be better than the last. stock futures soaring but nasdaq and s&p doing even better. perhaps people would have done whenever there is a dip, they pile back in tech. those futures it doesn't indicate where that will go. a positive start to the month.
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major declines up on average on tuesday. likely also a lot of underlying options to contribute. because the markets have fallen mostly because omicron has become a variant of concern. a one-year chart of the s&p 500. we have noted where the delta mutation became labeled a variant of concern by the w.h.o. that was may 7 investors got scared and started selling. a lot of worrying headlines around delta more transmissible maybe more dangerous will vaccines work from may 7 to 18, the s&p 500 lost and things calmed down and
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things rose about 12%. pretty good run after they realized vaccines work we have a lot to learn and a long way to go after yesterday's close, the s&p 500 was down 3.7%. nearly exactly the same as it was in may let's see if the trend holds now. we'll see. >> getting to the latest omicron variant and considering travel restrictions regardless of
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vaccination status requiring travelers to retest within 3-5 days of travel. according to a white house official, policy discussions are ongoing and no final calls have been made. an fda panel narrowly endorses use of merck's covid-19 treatment pill overcoming concerns of questions and how it could help mutate to a more dangerous variant. the pill still needs more approval before it can be used by the public. signs people fully vaccinated against covid in the last six months or have received the booster shot are protected
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against the omicron. this according to israel so far, they've posted three cases of the new variant we'll know from lab testing whether the vaccine works against the variant but it really will take what happens in the real world to find out whether it is really possible, how much more transmissible it is and whether it might be more vir u lent >> i have some friends in the scientific community i've heard when a virus mutates, it becomes weaker and has a harder time finding a home in israel, only four people but it showed pfizer was 93%
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effective in early studies i thinks that one reason the mark is up today >> we are hoping to build some immunity even as this virus mutates. it is early. it will take a matter of weeks before we start getting some traction on that data. >> hope is a good thing. maybe the best it is what we've got right now in moments, bertha thank you. to washington where it could be a dramatic december the clock ticks again. with two weeks to go, leaders do not appear anywhere close to an
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agreement lawmakers should agree to defaulting. the bad news is that they haven't figured out how to do that yet the plan had been how to vote on a measure today. as of late last night, republicans and democrats had argued over the use of those going to early next year lawmakers are confident they can reach an agreement soon. >> i think we'll get there certainly nobody should be concerned about a government shut down. >> on the debt limit, both parties say negotiations had
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been productive and there is hope for wiggle room on that deadline >> we hope to come up with an agreement both parties support that doesn't risk us in the debt limit. >> our own tracker with the policy center shows treasury has $272 billion in cash and extraordinary measure left that puts us in the yellow zone of two months of money treasury has a little more breathing room left after this week some big payments coming due today and then again on december 15 and that is why secretary yellen is urging lawmakers to make a decision soon >> you said treasury has more
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breathing room they could run out of money before the end of the month. those payments could last until sometime in january and that's why congress needs to act soon >> isn't that the definition of insanity stocks selling off on tuesday.
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newly confirmed and suddenly nervous jay powell said the fed will consider tapering up efforts. also saying the word transitory needs to go the way of the dinosaur >> i think it is probably a good time to retire that word and try to explain more clearly what we
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mean i almost think there is b.c. and a.c. before confirmation and after. what do you make of this suddenly very hawkish fed head >> i think you are right and investors need to pay attention. we expect tapering will lead to tightening and that will be one or two rate hikes next year. that includes borrowing costs which puts pressure on corporate earnings we think the fed has had a major stance change inpolicy what do we do?
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do we changeanything its just not normal. investors need to set the return expectations we've had an abnormally good stock market 10 years after frg, 14%. in the equity side on the bond
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side, that is negative so the latter and high quality of bonds and the floating rate makes a lot of sense in this interest rate environment >> in reason to own bonds? >> absolutely. there is room. it is a nice diversifier as a small percentage of your fixed income allocation. >> i feel like it is like a new month and a new fed chair. he's like the same meet the new boss, same as the old. i think the song goes. >> spot on >> appreciate you. big change there from jay powell coming up, some morning's
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top stories including big drops of shares of salesforce by the sea shore he said. a change in the c suite there, sort of. we look at the price of oil booming. goldman sach saying we are near capitulation the recent price move is basically the equivalent of a 700,000 barrel a day negative demand hit or the same as not one single plane flying around the world for three months or the world worse-off than before vaccines. and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds.
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a number of ceos have been doing the opposite as of late. selling some joining joining us now with a look at who is selling nadella selling for personal financial planning and joins other ceos in an overall record hereof stock sales ceos have sold $69 billion in stocks this year up 28% over last year. nearly 80% from the 10-year average. we'll see even more sales looking to be an active month. musk selling around $10 million
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of his shares with half going to options. bezos around $10 million this year kind of flat but five times his 2019 sales waltons of walmart followed by zuckerberg accounting for 40% higher federal taxes bezos saving around $700 million >> saving money in taxes more than you or i would seein
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five lifetimes that turns out that plan with most of these sellers. it may not be they are selling more shares but that the stock prices are so muchhigher and is probably one factor when we get into even the normal year
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and some at the state level as well robert frank we appreciate it so much the morning rbi. why we were in england and the follow-up. and what you need to know now about the latest covid variant maybe some is good news around treatment you may not hear anywhere else and pro talks with cathie wood. she'll take some of your questions at 10:00 a.m only if you sign up and are a pro subscriber sign up. we'll see you there at 10:00
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a.m. wel bk teth srt'lbeacafr isho break.
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today's rbi has to did with the weather. we went to england to talk about power shortages there and in europe especially if it gets really cold. well it ishappening.
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up nearly 500% more. the uk power suppliers may have to buy more gas at these rates if they cannot pass along enough jumps, many are shutting down overnight with no warning that would amount to 150 to 175 and in what would so-called fuel poverty where some would have to
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choose between heating their homes or eating. funding the power to keep the lights on cautionary warning about what happens when countries don't plan >> more on muations and concern about vaccine effectiveness we are looking at three things
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transmissibility if it doesn'tout compete delta, it will just go away another element, if you look at the sequence cases in south africa, it appears to have overtaken delta in a few weeks' time and there are cases found in the netherlands and there is significant jump of cases it takes a little time and there are some things to look at
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i think it is also important to realize with all of the other symptoms we've had a key and core component the last thing people ask about is disease severity. that is probably the last thing they'll look at. disease severity it will take a few weeks time to determine. >> it looks like even if the vaccines don't work as well, they should work fairly well
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against severe outcomes. am i hearing you correct >> yeah. that's our current view right now. >> as you point outright now, there are 32 mutations we haven't seen all the mutations. given what we've seen previously, you could have significant reduction to protect against symptomatic disease but significant protection against hospitalization. >> saying often, not always, when viruss mutate to this level, they will weaken because they are desperate to find a home and find any open door.
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historically, is it possible they will also weaken? is that is the historical trend. we jumped from seeing one or two to see the the cumulative set. there are more unknowns here, which is why i think everyone is trying to be more cautious of what the outcome could look like >> talking treatments. merck did get approval you follow a company called adagio talk to us about treatments. if we get covid, we don't want to get really sick or have more severout comes talk to me about how they
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differ >> no. they are not unlike at the beginning of the pandemic where we didn't have a lot of options in particular, you pointed to the merck oral pfizer has an oral then there are antibody treatments the vaccine tries to protect you so you don't get sick at all we have a lot of tools for treatment now. probably three out of the five known antibodies that work against the omicron strain so they are an important tool that is available for treatment. that is the positive news. there is a lot we still don't know we appreciate you coming on and informing us
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>> thanks, brian >> you are welcome must read veefrp on wall street. we are going to say goodbye but not before we leave you with a little green on your screen. nasdaq futures said anything can you do, i can do better. nasdaq futures up 1.3% 14 points. looks like investors may be back today. more picking up coverage next. have a great day through your work, your caring, your dedication to being wherever you're needed, becoming part of families, bringing more confidence to the comeback, and delivering the essentials to people's doors, you give over a hundred million people the chance to achieve a healthier life. thank you for bringing your heart to every moment of health.
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good morning stocks set to once again go the other way. crude prices are higher as well.
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reopening stocks like airlines and casinos all set to rebound an fda advisory panel narrowly confirming the nerk merck pill why the vote was close and who may be eligible to get it. not everybody. >> and new ceo at salesforce it's wednesday, december 1 "squawk box" begins right now >> good morning.

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