tv Worldwide Exchange CNBC April 29, 2022 5:00am-6:00am EDT
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it is 5:00 a.m. on wall street here is your top five at 5:00. investors with whiplash. stocks off the best day since early march. futures are back lower no prime deals here. sales of amazon slam after the first quarterly loss in seven years. it is not just amazon. rough morning for apple investors as that stock slips facing supply chain concerns. elon musk dumping $4 billion of tesla as he moves to take
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twitter private. it's back. wall of inflation. one year later we will show you the price moves of the 16 things from cars to corn. it will be eye opening it is all happening on friday, april 29th here on "worldwide exchange." well good morning, good afternoon or good evening and welcome from wherever in the world you are watching i'm brian sullivan good to be back with you happy friday let's get to it. check out the markets and your money. futures unfortunately down across the board dow is not down by much. as always, it is a story about big tech nasdaq futures are down far more than the dow even on a numbers basis. 107.
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dow down 75 nasdaq off .80%. if nasdaq ends like this, it will be another down week for that index nasdaq off down nearly 18% so far this year. thursday, of course, a different story for the major advantages 10-year yield up a bit 10.84% oil rising on thursday over russia concerns. oil back above $105 a barrel the real story natural gas. less than 20 cents away from hitting $7 per unit. it was there briefly a couple months ago it fell. it is going back up. if it goes back up, it will keep electricity prices high across america. many places in america you are cranking the air conditioning. here not so much.
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it's 37 degrees in new york. some day spring will come. it will get warm crank the ac and bills will go higher in crypto, bitcoin at $29,400. all this as the u.s. dollar is its own story. we should do more on it. in the meantime, the big stock story is two of the biggest names in the world amazon it is losing more than 8% after posting the first quarterly lost in seven years and slowest sales growth rate since 2001 the u.s. consumer starting to break. amazon outlook coming in well short of the estimates then you have apple. a rosy quarter topping estimates on nearly every metric however, a lot of attention always on the outlook with the supply constraints it is projected to cost the
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company. more on these names all morning and all day long of course, here on cnbc. around the world, you had a sharp rebound overnight in asia. things are just getting started in europe. let's get more onn both. rosanna lockwood is in london with green on the screen we like to see that on a friday, ro rosanna. >> thank you, brian. there is a lot of green out there. as you can see, the cac and dax have been up 1.3% so far in the uk, minor exposed stocks. ftse up. what we have inherited here is the leave from asia. the tech moves were something. that has really fed into the tech story as well we can't say it is all to do with asia, but independent tech
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stories. especially dutch tech stocks the broader euro stoxx 600 is up, but not up as much as one would hope the last trading day of the month of april and we are glad to see positivity out there. it is overall not a great month here as it hasn't been for you in the states. we are dealing with the macro factors as well. >> rosanna lockwood, thank you very much. green on the screen. what about the asian markets chery kang has that from asia. >> reporter: a couple of factors firing up chinese stocks and technology names in hong kong. beijing is promising to step up its policy support that is coming from the bureau meeting. overall mood is good shanghai ending the day good at 2.4%
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the china and u.s. regulators close to getting to resolution when it comes to auditsing the u.s. listed chinese companies. that improved the sentiment. take a look at what happened with the hong kong stocks. the hang seng index pushing higher by 4% in the remarkable rally at the end of the morning session. the hang seng tech index rallying 10% higher. that coming from scmp this morning suggesting that china might be ending the technology sector crackdown to give that technology sector a bigger role in boosting the slowing economy could be one factor in helping the stock. we don't see that every day. 10% gains when it comes to technology in hong kong. alibaba up on 10% and tencent up
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11%. brian. >> chery kang in hong kong thanks. let's get back to the markets. what's new in 2022 one trading day to go this month r month, dow is down and s&p is down as well big tech is doing a big story. nasdaq losing investors 10% of their money this month that is the worst month since pandemic and lockdowns in march of 2020. even worse happy friday nasdaq 100 dropping 9.3% this month. it ends there unless we get a big rebound today, that would be the worst performance monthly since the heart of the financial crisis in november of 2008 think about that wow. that has perspective on this with bill stone. chief investment officer at the
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glenview trust bill, thanks you wrote in "forbes" that earnings have been pretty good for those who didn't read it, to what do you attribute this crazy week for the equity markets? >> i think you have two things going on one is, and i think it is a big one, really the thought the fed is going to have to hike so many times that eventually it may break the economy or maybe that is an overstatement. at least slow it enough that it will eventually show up in earnings won't be this year or right away, but that's the concern going through which is there is less chance of a possible soft landing. the second part is and you are seeing it. you talked about the stocks today. last week was really netflix
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kind of cratering the whole media area and continuing to weigh on those very high expected growth stocks those have continued to be the weakest part of the market >> is there a reason why is this not a recession next month, although that negative gdp is spooking a lot of people yesterday. is there a reason why we're seeing such poor outlooks from companies? is it inflation? slowing consumer look at amazon, bill >> i will say the gdp was a lot worse on the headline than reality. when you look underneath, the consumer continued to spend. for the u.s. economy, that matters. part of what you are seeing, let's go to amazon you are seeing costs show up for
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some businesses. amazon, at least from what i looked at, they spent a lot to expand capacity. that weighed on the ecommerce side the cloud business was extremely good if you say they put money into expanding apacity, eventually that will payoff short-term loss for a long-term gain will be all right you see the cross current if you don't have demand to meet up with the cost increases, it is showing up that is falling to the bottom line >> and bill, i know, listen, you are out at the berkshire hathaway meeting a huge consumer company as well. not just candy, but furniture and jewelry, et cetera i know the consumer has been spe spending as you will agree, the worry is will the consumer keep spending? >> exactly
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the balance sheet still looks good and the job market looks good you would think they would they can get spooked and stop. you are right. that's the worry some worry is what we see in apple. not the current quarter, but will they have the supply and another problem with supplies to sell them. >> what are you hoping to hear at the berkshire hathaway annual meeting? what could be the comforting message from warren buffett and charlie munger and 40,000 people in a convention center there in omaha? >> it is always comforting they always talk about the long term let's get shorter term i do think because you mentioned it, berkshire is wide ranging. i don't think, you know buffett and munger are apt to sugar coat things it is what they he areare seeing across their businesses. more specifically as a berkshire
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owner, i'm interested in the insurance business and in particular how they think allegheny, the new acquisition in process, will fit in. i also think it will be interesting to see if they think insurance has gotten to be a better business recently i suspect they will say that with interest rates moving up because they benefit somewhat from that. >> yeah. yeah listen, it's great to be back in person it is great to have warren buffett and charlie munger in om omaha. bi bill, have a great time. it will be a big meeting >> thank you >> bill stone. to another big story and wrapping up a busy week with elon musk. bertha coombs, if we were an evening show wouldn't that be
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great? >> we are in asia. >> yes yes. >> it is cocktail hour in asia exactly. >> one other reason why i like you. if we play drinking elon musk, i'm not sure how the night would go >> yeah. he certainly keeps it interesting, right good morning to you, brian so we have new disclosures out late last night. showing elon musk sold $4 billion of tesla shares in the days following the bid to take twitter private. the bulk of the sales made tuesday according to the filings. the same day tesla shares fell 10%. in response to the filings, musk taking to, what else, twitter, last night to tell his followers no further tesla sales planned after today. the sales coming from the report
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of bloomberg that musk must discuss job cuts and subscription model telling teams of bankers saying his record speaks for itself following the possibility of new regulatory head winds for the purchase of twitter. key senate democrats, including commerce chair maria cantwell suggesting musk should testify about his plans for twitter. no hearings are scheduled at this time. that would be a big draw i can imagine that would be an all-day affair if he were to go before congress. >> it would be like those howard hughes hearings where congress was cocky and hughes decimated them if iwas congress, i would be
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careful about putting musk in front of them. i think we know who might get the better bertha coombs, thank you very much all right. we are just getting going on friday when we come back, it is not just apple and amazon disappointing investors. another company in hot water as well there is your chart. who is it? i don't know i'll find out with you. and why shares of donald trump, remember him? why his social spac is surging and more on jefferies and where you should put your money. we're coming back.
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welcome or welcome back. time for friday big money movers stock one is roku. first quarter earnings beating forecast just over 61 million streaming hours. jumped revenue guidance for the quarter. that guidance slightly below what expected. roku is up right now roku stock has been a tough year for anything related to streaming which is down 60%. 6-0. ouch stock number two is the mystery chart. that is intel. sales falling in the first quarter. missing forecast the consumer demand for lower
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end computers ws was slow intel expects the chip shortage to stretch to 2024 that stock could wipe out all of yesterday's gains. down 3%. intel ceo pat gelsinger on tech check today. and digital world acquisition corp if you heard that name, it is because this is the spac behind truth social donald trump's social media platform suggesting he may start to become more active on the app. trump posting i'm back coffeffe it was a typo that grew into a meme of its own. on deck, grab another cup of covfefe. our wall of inflation returns
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we are calling our wall of inflation. taking a look at 16 different data and price points to see where things stand right now remember, we first brought this to you one year ago when prices and inflation were beginning to rise for nearly everything we did it again in october to highlight the moves of the past six months now, one year later, we're bringing it back to check on the critical numbers and how they changed in the past 12 months. most of the commodity items like grains and metals are priced on futures contracts here on cnbc let's go here are the one-year price changes. okay let's start with oil you know that. oil up 62% in a year even more for natural gas. more than doubling over 12 months up 152%. that oil move has gasoline prices up 68% year over year speaking off driving, if you had
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to buy a car in the last year, a used one, you know the prices are out of control man home price index shows prices up 16% o16%. what about housing existing home sales are up from last march with the national association of realtors reporting a 6% jump on average across america for the sale of a home on the supply chain side, a very tight and very expensive market. with shipping container costs from china to the u.s. west coast port of l.a. up 77% year over year according to alpha liner. i will note they have come down a bit in the past couple months. over the year? up 77%. commodities are a similar story with easing in some. lumber has actually dropped down 25% from one year ago.
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steel? similar story. off 9% copper down a little year over year as is palladium do you want an electric vehicle battery? if you do, you need nickel that has nearly doubled. russia is a major producer and prices are surging let's talk about something you can eat. food if you have been to the store lately, none of this will come as a surprise. we're going to show you anyway year over year price gains for commodities of the live cattle futures up 15% beef up conc corn up 24%. wheat. greatly impacted by the war in ukraine. they are a major producer. wheat prices up 49%. not better for what you are drinking now coffee up 48% to sweeten that up, you might need sugar
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that is up as well 6% year over year wow. there you go round three of our wall of inflation. one year after the first and there is a little good news, as you can see, a few things, lumber, steel, some of the metals, have come down in price year over year overall, nearly everything else is still up, up, up in price some by a lot. although it is important to say shipping containers and cars have started to see some prices begin to rollover just a touch in the past few months so we'll bring this again three months from today and see how things have changed in that time the wall of inflation. only here on "worldwide exchange." straight ahead, airbnb taking work from home to a new level and the labor department pushing back on plans to i
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introduce crypto into 401(k) accounts. as we head to break, tune in tomorrow for berkshire hathaway's annual shareholder meeting. warren buffett and charlie munger back again toanswer shareholder questions for five hours. an event live streamed only on cnbc.com events kickoff at 9:45 a.m. eastern time on cnbc/buffett speaking of finance, we are celebrating financial literacy month featuring our contributors and friends. here is joe on how financial literacy impacts wall street and the markets. >> financial literacy has a positive impact on wall street it creates market efficiency and prov provides liquidity and creates strong demand for investable assets traditional and non
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now as their outlook is di disappointing to investors. elon musk selling a huge chunk of tesla as he looks to fund his twitter deal. could the government put an end to that? it is friday, april 29th this is "worldwide exchange. welcome or welcome back. good friday morning. it is 5:31 here on the east coast. thanks for waking up with us let's look at stock futures. they are not looking hot go back to bed or get a cup of coffee markets across the board nasdaq futures down 1% looks to wipe out what it gained yesterday. in fact, it is actually up this week about .25%.
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i know that's oddly specific, but that's the case. if the markets hold today -- thank you. say words and words appear on the screen if the markets hold today, it will have another losing month for the month and year, the nasdaq is the worst of the group. in fact, on track for its worst monthly performance since the pandemic first hit in march 2020 nasdaq down 18% year to date ouch speaking of big tech one big thing to watch is cathie wood's ark etf up .25% of 1%. this once darling of the investment world continues to cost investors money the ark taking on water. now back to late 2019 levels
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wiping out more than two years of gains look at that pricing $48. ark etf was over $150 a share back in february of last year. in 14 months, it lost $10a share. you can blame a chunk of the ark losses on teladoc. it was down big yesterday. it was down again in the pre-market that stock chart looking grim. remember, teladoc is a major holding of the ark innovation etf. let get aus get a check of other top stories with bertha coombs what else's do you have on the ticker tape? >> airbnb is telling employees they can work remotely forever the ceo says some small roles will take place in the office. majority of the employees don't have to come in. they wouldn't have to take a pay
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cut if they move away from the cities near the company's offices. they can work and live in each location as long as they keep a permanent address on file. goldman sachs out with its latest forecast for the next fed rate hike. overnight, the bank is now confident a 50 basis point hike at the meeting next week with another .50% at the next meeting. goldman sachs says the bank should throttle down to 25 basis points after that through the rest of the year. and the labor department is sounding the alarm over fidelity plans over allowing users to put bitcoin assets in the 401(k) accounts the labor department says it will speak with fidelity about the concerns, including the option to allocate 20% of one
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401(k) account to crypto which the labor department see speculative at best. >> you don't see the labor department going after fidelity. a lot of people hoping for that. bertha, thank you. back to the markets and your money. tech's wild ride it is not a disney ride. the nasdaq snapping a losing streak that was nice. the gains are in jeopardy right now thanks to apple and amazon apple stock down about 2% right now. it warns of supply constraints from china and lockdown there is could cost as much as $8 billion. it is enough for spooked investors. also, amazon is down big after
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missing revenue forecasts. they got all kinds of challenges according to them, not us. including inflation and supply and labor woes amazon reporting the slowest quarterly sales growth since 2001 21 years ago its first quarterly loss in seven years. joining us now is jared weisfeld jefferies managing director. michael from "the big short. he had a tweet saying there is the slowing u.s. consumer. i guess hoping for bad news, i how do we read amazon? is this the first sign of the truly slowing american consumer? >> good morning, brian thanks for having me on. you know, amazon report was pretty nasty under the surface
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i think the bigger problem with amazon is the deleveraging of the model. they reported q1 operating 31% below consensus. they got in the high end of the june quarter 56% below consensus. a lot of that was amazon specific i would take the opposite point from the health of the consumer. this is true of both apple and amazon earnings calls. they went out of the way to talk about the consumer remaining fairly okay. inflation is continuing to be a key concern. these prices are remaining high. there is the fear that the consumer will slow down. as of now, i think we are getting the blessing from two of the largest tech companies that the consumer is hanging in there. >> i guess, jared, hanging in there is good, but it is not as good as the consumer is growing and the consumer is spending
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more how much are inflation and interest rates i guess we call it the double dreaded "i." how much are they hitting the sector >> let's take a step back. interest rates are moving higher the 10-year yield approaching 3% that is a significant move considering it was 1.5% at the start of the year. the fed is combating inflation pressure nasdaq is the worst sector year to date with the concerns on the consumer slowing budgets i would certainly caution reading amazon as a proxy of the health of the consumer the world is reopening if you look at ecommerce and percentage of retail spends, that is slowing. people are not longer stuck in the homes. the landscape is more than it
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was two or three years ago tech investors forget that there is competition heating up. you look at the omni channel with walmart and target. they are not backing down. they are investing heavily on the online digital existence apple is growing 9% year on year and 50% comp for a high-end smartphone that is a better proxy for the health of the consumer >> what is key to you going forward, jared that is a huge week in a long time that all of the biggest names came out in the same week. now it is over we know. what is your next big data point? what are you watching for from companies or markets or technical levels we are going into a vacuum the fed next week. that's a big deal. what are you watching closely going for? >> going forward, i think the
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question will continue to remain the health of the consumer and how do we think about potentially moderating inflation over the next two to three months the fed next week. we had a benign cpi. the cpi is getting difficult here if you think about how inflation stepped up last year and the comps will get difficult the fed does that. does that act as a silver lining here i think the other thing to think about for tech here is the market has come in considerably. val a valuation across the sector. they have come into reasonable levels m-faang trading at a higher level. the rotation continues out of tech and the one group that is not selling is private equity.
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we had $50 billion of software m&a. that is alive and well and something to keep note of. >> a very good point jared, a little bit of optoptimm jared weisfeld, thank you very much. we are not done. on deck, former doj anti-trust head makan delrahim with what is happening in the political world right now. as we head to break, headlines. u.s. steel looking strong. posting record profits on rising prices and improving demand. also western digital an offering up beat guidance somebody call the sheriff or little john.
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robinhood shares off double digits a 43% quarterly drop and fewer active users as retail trading l losing steam it is below $9 a share wow. we are back right after this hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better.
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media happening now. new disclosures showing the deal on musk selling $4 billion shares of tesla up to and following the bid to take twitter private. the bulk of sales made tuesday the same day tesla shares fell 12%. that's why they fell on the media side. disney pushing back against the florida regulatory offensive behind closed doors. lobbyists are working with ron desantis' office to allow the governor to save face and doing nothing to impact operations in the state. the next guest is the most powerful corporate attorneys with experience dealing with governments and companies. makan delrahim he is now part of the law firm lakin. thank you for getting up early we have a lot of ceos that watch
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cnbc and this show in particular getting up early if you were advising bob chapek and disney and ron desantis and put them in a room together, what is your advice on how to navigate not only their specific situation, but this incredibly politicized world where every comment by a ceo or politician is scrutinized by people like us over and over and over >> good morning, brian great to be with you again you know, that's a tough call. it's a world that look, disney is one of the great american companies and incredible brand with just some of the best intellectual property there is in the world as a father of three young children, i'm a big fan. things like disney plus and i'm thinking about vacation with a disney cruise is an almost must-have for us
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that is the saga that disney is dealing with it is a great lesson for how corporations today in this environment almost everything, whether you are in an industry where it is regulated or rely on the government, whether it is tax rebates or for intellectual property laws, how important it is to make sure your actions are considered and the counter political actions in today's heated environment is also considered in what they do a lot of discussions about multiple stake holders for corporations one important stake holder you shouldn't forget is the shareholder as well. >> i think that's a very interesting point and important one, makan earlier, i referenced howard hughes, tongue-in-cheek, in the hearings in anti-trust and airlines obviously people may not know the story, but the movie "the of
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a aviator. that was last time we saw a battle of a major company and government is there a winner here or is it whatever happens both sides losing both fighters ending on the mat? >> you have an environment where a lot of folks are living by social media you are having push back members of congress are not at times interested in finding solutions to problems, but really reacting to the twitter mob. it is my hope anti-trust doesn't get into thatworld where actions are taken based on popularity based on a vocal minority on twitter as opposed to what is good for the economy and law enforcement. that is where we're headed you know, it is a political
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environment. no question. governor desantis, by definition s a political actor here disney had to live by the benefits of government action as well with as some of the problems with it i think it is good for both of them disney has benefitted from being in florida i do hope they resolve it, whatever disputes they have. i know, as you may know, i was aim an immigrant i came here when i was 10 years old. we landed in los angeles the most memorable moment and one thing i wanted to do when i came to the united states was go to disneyland. that was the happiest place on earth for me i'm sure there are a lot of people in all corners of the world that think about disney in that way i think they need to think about the importance of the brand. how to repair that for the families and for the consumers ultimately hopefully they will resolve
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their issues with the government i have faith >> you and i might have been there in anaheim on the same day. hoping our parents would buy the e-ticket to ride all the rides if you remember that, you dated yourself like i have don't politicize amusement parks, i uess. let's get to anti-trust. the reports that the ftc may review elon musk's purchase of twitter stock as he is talking about it and now obviously may win the company. how do you see the current administration's anti-trust approach now and do you think it will maybe impact musk's twitter deal >> i think the administration anti-trust approach is something where we are in a new world of anti-trust there is a lot of uncertainty. there is agency action on seeking document requests that have no bearing to the
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competitive forces of a particular transaction they are done for delay or sometimes done for whatever reason i bring an example of amazon and mgm which i wasn't involved within either the government or private sector that probably took longer than it needed to take given the natural overlap. i heard the calls and recently one of the think tanks that doesn't seem to like a lot of mergers just called on the government to use anti-trust forces as well as communications authorities to block mr. musk's acquisition of twitter just on its face, i do not see a lot of overlap the government will bear heavy burden to explain if that is a type of deal and review that takes too long what was reported yesterday and i don't know the facts, might deal with technicalities of sometimes you have to make certain filings and trip wires jay clayton, former chair of the
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s.e.c. and an i got together to propose ideas to make sure they are not tripped by the a antiquated rules i think that is what the news reports are referring to >> you think the deal gets done ultimately >> i don't know about the contours of the tender offer from the anti-trust standpoint, i don't see what the overlap or competitive concern here could be in any way. i heard members of congress calling on anti-trust authorities. i think it would be a real shame and it would be -- unless they articulate a theory that is credible this is a deal that should get review no more than 15 to 30
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days. >> wow a lot of people inside twitter reportedly and in the media panicking for lack of a better term over the deal you think it might get done. makan delrahim, thank you. take care. >> thank you, brian. all right. you're welcome le let's head to break with the china stocks major chinese newspaper reporting that the communist party may, may, be set to end the crackdown on big tech. that headline in the south china morning post look at that jd and meituan and alibaba and ten tencent up double digits or more stocks well off the highs, but cold comfort on a headline from a chinese newspaper. we're ckba with david katz next.
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all right. before we wrap up, reminder of the pro strategy session this monday great four guests for you. a cnbc pro live stream one hour unscripted 11:30 a.m. eastern time. live at the milken global conference in l.a. you want to hear it. if anything, see us switch out guests on the live stream. go to cnbc.com/pro/talks. let's bring in david katz. david, you are a steady hand a cool, calm customer. you have been through the down turns before a lot of the audience and investors have not you know, they are new investors. everybody making money for years. now they're not. what is your word of wisdom to
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newbie investors >> don't get caught up in the negativity when the market is going down, the news all looks bad what markets do is rebound significantly. much quicker than people expect and out of nowhere a lot of things to be concerned, but a lot of good. the economy is doing well. the consumer is very strong. with the recent pull back, stocks are okay valuation. there are a lot of stocks out there that are attractive. we would be buyer weakness we are not concerned about where the market is going over the next year. >> my apologize for a short interview, david so much breaking news. i'm sincerely sorry. what parts of the market look the most a tttractive to you rit now, david >> financials had a particular pull back. they had concerns with rising rates. we think that is behind them we think select technology is a
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good place to be >> david, i'll have you come back and have a longer segment come back soon. >> not to worry. >> david katz, i appreciate it have a great weekend folks, see you monday live from the conference "squawk" and the gang picking it up next. have a great weekend or is it a feeling? a freedom, to live our lives the way we intended. through the ups. the downs. all of it. this is financial security. from long term care planning, to annuities and life insurance, lincoln helps you plan, protect, and retire. this is lincoln financial. xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets.
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this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. new and existing customers get amazing value with our everyday pricing. switch today. good morning amazon and apple are both lower. apple after warning of supply constraints and china effects
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and amazon posting the slowest revenue growth since the dot-com bust a loss you say ev details straight ahead. new filings show elon musk sold $4 billion in tesla shares. we will tell you what he tweeted as the sale became public. it is called woodstock for capitalists. we take you live to the berkshire hathaway meeting where warren buffett is set to hold court. it is friday, april 29th, 2022 monday is may. "squawk box" begins right now.
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