stanley. it is thus, october 26th, 2023 you are watching "worldwide exchange." good morning i'm frank holland. let's start your day as we kickoff with stock futures we show you they are in the red across the board looking at percentages nasdaq is down 1%. the dow and s&p also in the red. we will talk more about what is going on in a moment this action here after a rough session for stocks yesterday with the s&p fall by more than 1% also the nasdaq now in connection territory it closed down nearly 2.5% its worst day since february the focus of that selloff is on alphabet logging the single worst session since 2020 and the largest decline in market value of $166 billion wiped out. that number equals all of amd or disney shares are lower again this morning. down 2.25% we are watching surging yields.. 10-year treasury is at 4.95% the 2-year treasury is also showing a yield above 5% as well as the long bond. >>> we will have more on the sector in a moment, but breaking news uaw reaching a tentative deal after 40 days on strike. we have phil lebeau with more on the story. phil, good morning

frank. shares of morgan stanley set to withstand the 5% loss after the bank is investigated by u.s. regulators, including the s.e.c., office of the c comptroller of the currency and treasury. according to reports, regulators are looking into whether the bank had adequately investigated the identities of clients and sources the wealth. >>> globe life is responding to a new short sell the report from fuzzy panda research with fraud at the life insurance giant. globe life said the research mischaracterizes facts and uses unsubstantiated claims. shares are higher in the pre-market after falling sharply in the trade yesterday. >>> finally, cathie wood's ark investment holds a stake in a.i. darling openai. in an email to clients, ark said the venture fund invests in openai. the $54 million ark fund was launched in september of 2022 and invests in public and private companies like spacex and epic games and recently the reddit ipo. >> bertha, thank you. >>> more to come here on "worldwide exchange," including the one word that voinvestors nd to know today and the one stock that can't seem t

we are morgan stanley. hey frank, our worker's comp insurance is expiring, should we just renew it?h, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow, that is easy. so, need another reminder? no, no no, i'm good. uh, yes please. oh. ho ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com. i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow. >>> welcome back to "techcheck." i'm jon fortt. a check on major indices touching new record highs today. s&p, dow and nasdaq up about a percent. dell popping high er sat the sam time spinning out vmware and a cash dividend for 81% stake of dell. dell shareholders getting 4.4 of vmware dell technology continuing to hold shares. might clear of

financial technology -- director of financial technology devin ryan >> good morning, frank >> let's look ahead to morgan stanley bank of america. do the reports look to be as bad as people fear >> there have not been big surprises. net interest income stories is something we will see going forward. credit has not been an issue yet. you still have macro uncertainty moving forward for the banks moving forward today, the capital story is the key piece here we have been in the duduldrums r 18 months. especially morgan stanley reporting. it is one p stat for you you see a recover any in the normal tread line. for ma&a, it needs to increase which gives you the sense of how bad it has been. >> we have a bit of resurgence with ipos. i want to talk about something people are focused on. the impact of rising rates small and regional banks is there any more danger with the big banks with the hike expected in july and maybe another one later in career? -- later this year? >> there is accuse stress. we have not completely resolved that uncertainty our view is we are getting in the late innings of the cash fees they will nev

stanley. >>> i'm frank holland. here's your cnbc news update this hour. florida jury has decided the 2018 parkland school shooter will not face the death penalty. the shooter has pled guilty to 17 counts of murder. the jury deliberated for seven hours. >>> at least 18 people were killed over 1,500 people died after last month's flooding and hundreds of thousands of people remain displacedmism officials say the bus caught fire after the air-conditioning malfunctioned. the next public hearing of the january 6th committee is set to kick off in just under an hour this is the ninth public hearing and the final one before the november mid-terms while the hearing is not expected to include any live witnesses, there's expected to be n ttinyewesmo and evidence including secret service records and surveillance video "halftime" returns after this break. so you can enjoy more of...this. this is the planning effect. i'm a vegas hotel. i know what you're thinking. it's cool, i don't want anything long term either. just a few nights of fun. i'm looking for someone who w

bank of america and morgan stanley, among those stocks sharply off the pre-crisis peaks well before that 2009 low. frank kapalari we're talking about big important stocks on a basis are down in a bull market, any of them here worth betting on >> hi, mike. i like morgan stanley but if you go back to the march high of last year, stocks down 40% down trend the entire time really nothing to like about that, but the stock has been through this before. a chart, from '09 to 2012, down 70%. 2015 to 2016, another 50%. both times, able to make higher lows and then those rallies with a wealth of strength the financial sector etf i think now, stocks are about to test that line again if it could bounce, it could trigger a rally that could play out on a relative basis. >> the fundamental case for morgan stanley, for example, given where we are in the cycle and all the disruption parts of the business >> they can't. i mean, the banks don't excite me because it's tough to make money with a flat yield curve so with morgan stanley, you know, we have a company that has exposure, which is good. and in this slow growth econ

frank. morgan stanley, the stock has been terrible and even though i can question why that is so cheap.want citi. they want corbat. >> at least they want him now. ? they want him now. >> as we said, a busy morning and busy week shaping up. why did one wall street analyst say he got cold feet when buying a samsung galaxy phone. also following the money flows, why does job's friday fit in. >> take one more look at futures. as you know in general, monday's not terribly positive so far this year, but we are looking at a live open. more "squawk" at post 9 when we more "squawk" at post 9 when we return. tdd# 1-800-345-2550 when the spx crossed above its 50-day moving average, meeting this as the company's 787 dream liner on back in service. ethiopian airlines flew it earlier this year. pre-market shares of boeing are pulling back a bit and they've been at 52-week highs and phil lebeau will interview james mcnerney later today. >> they weathered the storm one would say, jim. >> not bad. >> never waiver. people don't understand, this is an engineering company and they always seem to think that

morgan stanley hi, i'm frank. i take movantik for oic, opioid-induced constipation.my doctor prescribed opioids which helped with the chronic pain, but backed me up big-time. tried prunes, laxatives, still constipated... had to talk to my doctor. she said, "how long you been holding this in?" (laughs) that was my movantik moment. my doctor told me that movantik is specifically designed for oic and can help you go more often. don't take movantik if you have a bowel blockage or a history of them. movantik may cause serious side effects, including symptoms of opioid withdrawal, severe stomach pain and/or diarrhea, and tears in the stomach or intestine. tell your doctor about any side effects and about medicines you take. movantik may interact with them causing side effects. why hold it in? have your movantik moment. talk to your doctor about opioid-induced constipation. if you can't afford your medication, astrazeneca may be able to help. >>> you're watching shares of apple, then they're about flat. the mac book pro, the one that includes models with the touch bar, fail

. >> morgan stanley upgraded. check out frank blake if you want a cool ceo. i like hd. >> the brazilian housing market is very different and it's been well traveled. visa came out with an offer. finally valuations are back. the brazilian housing marked a mexican housing market have remember covered. there's a shortage of labor and materials, so take a look at this. >> they benefit the most from the first-time home buyer tax credit. >> i'm going to take lows over my man home depot. >> have you ever ben to a lowe's? >> they just put one in mexico, as a matter of fact. >> let's go get them. >> let's go this get them. >> you got it. >> all right. coming up next, you heard on the desk how there's some questions on the rally we saw today. how a chart legend is actually calling for a retest of the march lows. ouch. find out why and whether the traders agree with him. lity vehs has been our first priority. ♪ in recent days, our company hasn't been living up to the standards that you've come to expect from us or that we expect from ourselves. that's why 172,000 toyota

. >> good morning, frank >> what do you make of jpmorgan chase and morgan stanley saying short sellingrket >> the sentiment and options market, frank, has shifted as well i would call it an inflection point from the beginning of september. a few months ago, folks could not buy call options fast enough in the magnificent seven everyone had to jump in the pool at that point in time,that was the pain trade now the pain trade is on the down side. you see that in the options in mega cap tech sucked out you are seeing it specifically in the bearishness in the put options. specifically when you look at mega cap tech, you see that in apple. >> interesting i have data from estery partners year to date, short sellers have lost $127 billion. i know the bear sentiment is rising, but in your mind, what are the dynamics that changed this with the short selling? >> it has been painful the another stat i have for you is last year when you looked at owning or hedging, the market has drawn down you managed 20% in the put buying hedges haven't worked and it is painful. when you try to protect yourself me

report, jpmorgan chase valued hulu for disney close to $27.5 billion and morgan stanley valued hulu at $40 billion frank>> silvana, thank you very much. see you later on >>> turning attention back to the markets. the rebound showing fresh momentum as stocks come off back-to-back positive sessions and renewed hopes of a summer rate cut are looking for sentiment. the top voices are focused on that at the milken conference. >> goods are in better shape supply chains are in better shape. service is the sticky one. things are headed in the right direction. we love it if it would go faster that way. >> with deglobalization, we're likely to see a level of inflationary pressure of goods be higher than it was for the last 30 years. the fed has to know that they're thinking about goods are likely to be higher baseline for the foreseeable future and services still unacceptably high >> inflation is going to be popping up in very different ways you can't just buy commodities or tips. you have to spread the assets. >> let's discuss how to position from here with douglas b bonaparte. d doug, great to have you on the s

. >> joining me now is morgan stanley chief wealth analyst. >> good morning, frank. >> i'm not goingof paraphrasing jamie dimon. >> they're priced for the soft landing. >> what does it mean going forward? it sounds if anything happens, we could see a selloff or a dip. do you agree we need everything to go right to keep the rally going? >> i think that's the case. as soon as the fed starts communicating it may start to cut rates, the market prices in the entire rate cutting path. in one sense, the fed needs to deliver that. what if the fed does not deliver that? >> what do you mean? 25 basis points or if they only do 25? >> the entire path. the fixed income market is placing a 40% probability that the next cut could be 50 basis points. i don't think the fed is particularly going to die in battle over whether it's 25 or 50 if the data point is weakening. in terms of the entire path could get into the cutting cycle, the market has priced that in. let's say the economy does better than expected and the fed cuts, but doesn't cut as far as markets are pricing, you have to have yields come

e*trade from morgan stanley >>> robert frank live here in monterrey. the super car summer with both classic and new super cars rolling into monterrey. we're going to talk to the ceos of lamborghini and ferrari about why hybrids are now driving the upper end of the super car atrket. th's coming up right after the break on "squawk on the street." each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team. solar energy is changing the world, aes is changing the

days where we were able to pop late trading, in the wake of dodd frank, do you think the loss of the goldman sachs's, the morgan stanley'se proprietary trading desks, do you think that's put the market in a perilous decision? >> it's not just dodd frank, it's some of the capital rules that's made it more, you have a lot of nontra diks diggsal liquidity provides like virtu to step into the void. we don't have the balance sheet. i think spreads have collapsed but maybe the depth and breadth of liquidity is not what it was. so there's a tradeoff there. >> this pete najarian. it was you would lk skrim this as seamless, is that right? that's what i saw going on throughout the day. other than all of the coverage that was getting in the media, no one really had any missteps because of the fact that the nyse was closed for three hours and they were able to get the close. those were the three most important parts of that, isn't that right? >> i think the nyse is a very important part of the ecosystem and you guys have expressed it very well. we've invested and we've got great guys on the floor that participate in that. we experie

. >> that said, will goldman and morgan stanley do better under romney? is dodd frank the liaison? or depending on trading and merging acquisitions as the pedaling of big acquisitions. maybe they can come back. i still can't pin the tail on obama. too much disparity within the sector. obama care was supposed to take the profit margin out of the drug stocks, right? merck and fizer are unchanged. they're running gilliad. i think it's better drugs and better management. consumer packaged goods, again, not the president, but execution determined performance. that's why colgate has ramped from 77 to 105. procter & gamble barely budged. you think the carbon bashing president would crush the oil and gas industry. but it's the oil managements themselves that seem to change the situation. that's how chesapeake could go from 37 to $17. resources soured from 23 to 22 by going all in oil. exxon, which has found little new oil and gas and dramatically paid for xto, a giant natural gas company has gone unchanged, while chevron moved from 87 to 109. again, the difference, management. i really lik

frank. >> got it. you're kind of in line with morgan stanley. to get a sense, what is your thought on the market? are hitting fresh all-time highs, the nasdaq at highs we haven't seen since january of last year, along with the s&p, and also multi-month highs. what do you think about all this euphoria on the market. i know you said delusional is the word. but can we see that? >> you might get a little bit of disappointment. the enthuse am you're seeing is the market moving for the first time in two years. that's a good thing. delusional is a lot of rate cuts early on. >> don't want to cut you off. i want to get to your pick very quickly because we're running out of time. one of ibm. given us a sense? >> we're old school. they're a company by their own admission is a little late to their own party, but red hat is profiting. if you're looking to expand out, they pay over 4% dividend. if you're looking at forward multiples, only about 17. i think there's a lot of value there. most importantly, the stocks have been range-bound for three or four years and i think ibm can be a surprise winner in ai trad

blame a stronger dollar for slowing international revenues this morning, morgan stanley downgrades adobe to equal weight frankrprise tech frank. >> yeah, definitely developing story. cloud and enterprise stocks have falls 33% in q2 alone, almost double the s&p due to growing interest rate pressure another growing headwind, the stronger dollar. especially for companies that charge for their products in localal currency. the list of companies expected to see continued negative impact from the rising dollar due to taking local currency include big names like microsoft, which gets 40% of its revenue outside the americas ad adobe, about 44% of revenue. salesforce, a third of the revenue outside the americas we have seen considerably stronger gains for the dollar than we have during the pandemic and even in 2019 right before the disruption, historically, raising interest rates has also led to a stronger dollar on june 2nd and microsoft warned of negative impact from the stronger dollar, since then, rising another 2.5%. and when you look at the gains against other major currencies, the euro falling 4.5% to the dolla

frank will impact their international operation. that's a summary from the meeting. afterwards we spoke with jpmorgan and ceo of morgan stanley, both of whom said the meeting was productive. back to you, guys. >> a lot of groundwork to be laid there on dodd-frank as they get ready to implement the financial regulations and jamie dimon has referred to it as dodd-frankenstein. >>> after starting the market lower on the major concerns, they are clawing their way back to positive territory, be almost. get this, the dow has been down at some point in the past six trading sessions and managed to close higher on five of those sessions. we're going to see if we can manage to slip past break even here in the final hour. down 30 points. we were down 11 a moment ago. we're starting to slip here down to 13,248. a decline of a quarter of a percent. nasdaq is up 4 points. s&p down 4, almost 5 points. right at 1400. we'll see if it can stay there at the close. maria? >> meanwhile, we are waiting for news out of earnings from visa, whole foods, and green mountain coffee. we'll bring that to you as soon as it's out. research in motion, the st

. >>> frank, it's interesting that you lk to morgan stanley about it because they've been under someata they'vgiven us, although it's a couple yea old, shows within the bank they need -- there is progress to be made still >> yeah. i spoke to a chief human resources officer about that he said that they're working on it most of the big banks would admit they have work to do one of the things is that many of the biganks they're feeling competion from outside companies, tech. other people startg their own finance companies, wanting to bran away and part of that is i think that's something that i know for a fact morgan stanley says they're working on and the other big banks as well. >> frank, your work this week has been exemplary and it's a story that resonates across all kinds of new silos financial news, general news, you name it. >>> coming up on tech check, the ceo of hpe is with us on the company's latest quarter it starts at 11:00 a.m. eastern time "squawk on the street" in the meantime will be right back. ok, at at&t everyone gets our best deals on all artphones. let me break it d

stanley's estimates. back over to you >> all right frank holland, thank you and when we return, frank calderoni is with usn how the company's customers are planning ahead for more tariffs, fewer, sooner, or later >>> and later, the president's chief economic adviser larry kudlow joined us with his take on the jobs report lore on that a t more "squawk alley" still ahead, stay with us. >>> what if? that's what anaplan clients and everybody else asking themselves when it comes to tariffs using the company's financial planning software to analyze just how and when tariffs might impact their businesses. national economic council director larry kudlow joined us earlier this morning saying conversations with china on trade have been going well take a listen. >> the phone call night before last between secretary mnuchin and ambassador lighthizer and vice premiere lee yao hey went very well. that's important they have decided now the deputy's level, the deputy's level will continue in washington later this month. and from that deputy's level meeting, will come an agenda and an outline so that the principles will m

frank. >>> now to the most hockey of all hockey stories the stanley cup play jofrz are underway, and the sane diving in face-first, literal literally. the sharks captain scored the first goal of last night's game when a puck deflected off his jaw. he did lose teeth on the play, but he was able to skate off under his own power and actually returned to the bench later in the game wearing a protective mask covering the lower part of his face they went on to beat the vegas golden knights 5-2 pavelski jaw 1, 0. >>> the world's biggest democracy kicking off electrics today. that's india this could actually have a big impact on your money even if you are not invested in india. >>> later, why hitting it on the green does not necessarily mean a green jacket at the masters. your morning rbi has to do with golf and why golfers actually want to lose a competition >> that's the word i'm looking for in london. thank you, kevin he has been in there for more than eight years and the ecuadorians removing asylum overnight. the u.k. police swept in he is wanted by the swedish police on allegations of sexual mi

i don't know the answer, the way frank quattrone was wuchblts morgan stanley would say it's not true, but it does come up in a lot of conversations. >> i had heard anecdotally a lot of my friends in the smith barney network got the call saying, i know you didn't put in -- here's your 5,000, 25,000, confirmed that went went on. some chatter that you guys are way off the reservation, so it was very clear, it was like a 36-hour period where i think gorman and grimes recognized i know there will be over the tra transom order, but the way that nasdaq screwed it up, it was difficult for the flip to occur. there was a flip to be had, but you couldn't flip it. >> and that will come back time and again and simply say we'll never really know how it would have gone had it not been for the major screwups, and that perhaps stability has been found. so a very good pieces, tau you about how there's a diminishing return, go back to that quote, it's his throat to be choked. odd that in this would ever put themselves out in that way. this is a guy that's a successful investment banker. it wasn't really

series of strategic missteps and morgan t stanley will discuss as well let's talk about this with nancy. good morning great to have you here >> thank you, frank week of bank earnings, what are you looking for and what did you make of what we saw last week? >> particularly with the big banks, goldman sachs and morgan stanley, we are looking at the deals gore forward one of the things we heard from jpmorgan chase was some optimism on deal flow picking up. we know that deal flow was bad last year. we know the numbers were down in the 20% range. we are seeing an improvement on the m& a front particularly in healthcare we think it is likely to hear optimism about that and optimism on the ipo front going forward that would be good for the stocks as that is an excellent business for them. in addition from goldman, we want to hear about the consumer business where they made a lot of missteps. we need to hear how they get out of the businesses. >> you mentioned the consumer business one metric is net interest income what is your expectation with that you mentioned the consumer business bank of america net interest income was better than people expecte

frank joins us now. >> morgan stanley, shares moving down about 3% lower despite inline revenue and aas 8% above estimate buzz still 9% lower year over year. revenues of $938 million, well below the estimate of $1.11 billion. wealth management also missed expectations. again, shares down more than 3%. >>> travelers insurance moving lower after a beat on revenue but really actually moving higher now. 1.25% after a beat on revenue but a big miss on eps. profit more than 30% below estimates, catastrophe losses that led the personal line of business, which generates just about 40% of revenue, to be unprofitable. however, that headwind was expected. you can see right here, shares up over 1%. last but not least, procter & gamble shares moving higher this morning. profit, 6% above estimates. 7% organic growth, that beat estimates. shares up 2% right now. the fabric and home care business that includes mr. clean and downy, really, the driver of the quarter. becky, back to you. >>> okay, frank, thank you very much. let's take a final check on the markets right now. the futures have been in the

frank. >> let's talk about earnings. i'm looking at some of the earnings. morgan stanley eps expected to increase 99% year over year. what's the catalyst for the big upside moves when it comes to profit? >> yeah, so, it really is investment banking and trading and rebounding off more one or two years as interest rates are really high during the 11 rate hikes we had in that hiking cycle. as we et off that, the earnings are good. for morgan stanley, in particular, they get half of the revenue from wealth management. as we know, you know, they basically get a fixed percentage of a lot of people's overall assets under management. as those rise, their fees rise, frank. >> we have seen a big jump in financials after the election. a lot of what brian moynihan was talking about with the regulatory environment. how much is baked in for the friendly regulatory environment? some of the gains have eased back. >> there's room to run. those gains have pulled back because of what's happened in the bond market. that moderated enthusiasm for the big banks. i'll be very clear. there are three or four different key regulatory bodies y

by the way, as i indicated earlier, frank, this deal would close very quickly there is a 15-day marketing period on the debt, that morgan stanleythe leader in the financing but that has been waived so you could see as soon as friday or monday elon musk becoming owner of twitter. but, again, before we get there let's see what they say in terms of the news. let's see if he releases the letter but, again to go through it last night a letter sent from musk unexpectedly, by the way, my understanding was there had been no real conversations at all about a settlement reported friday when there was that interesting stuff, but this was kind of out of the blue. the letter sent to twitter and the court saying we'll just by you at $54.20 as previously agreed to, please drop the litigation and that's where we stand right now, just waiting for the letter itself and for the court to give us some comment as well. >> for people listening your air quotes right there on the news duly note. we haven't officially heard from elon musk or twitter just yet. is this deal going to be the original deal? i think a lot of people feel there's been some dama

frank holland, thank you very much >>> in the sports world, game two of the stanley cup finals took placeon. call it title town it came down to the wire the bruins and the blues tied at 2 at the end of regulation play. carl gunnarsson scored the winning goal, just four minutes into overtime to win it for the blues. that's the first ever finals win for the blues. it ties the series at one apiece the finals resume in st. louis on saturday night. you can catch it 8:00 p.m. eastern on nbc sports. >>> one tech company shrugging off the trade war despite sizable exposure to china. we'll bring you what that name is straight ahead. >>> and why one big money manager says it is time to think small. but for big returns. he'll explain when "worldwide exchange" comes back are and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. e-commerce deliveries to homes my gums are irritated. i don't have to worry about that, do i? harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. it w

stanley drubmiller. now, family offices, they get a special exemption from dodd/frank. a lot of -- it means that family offices are not classified as investment advisers. they don't have the same disclosure requirement or rules. the argument is that family offices, they don't manage other people's money, but the definition of family and family offices is very broad, as long as you have a common ancestor, you're family. it includes formal spouses and spousal equivalents. employees can also invest along with certain trusts in charities. >>> they may have to take notice. >> robert, thank you very much. >>> sue, down to you. >> guys, let's talk about j.c. penney. let's look at where it's trading now. two companies back on the comeback trail. general motors replacing and ai giismt -- now separately the financial stability oversight counsel -- and subject to increased regulatory oversight. aig is off 0.6 of a percent, lu lu lemon up, the retailer astroand yoga pants are reappearing in stores on the flip side, though, dollar general s. biggest decliner now 7.5%. matching estim

frank. ipo market showing no signs of slowing down. r reddi, it is working with morgan stanley goldman sachs on the listing and considering a valuation of 15 b$15 billion. other names include rubrik, a start-up and skims holds a valuation of $4 billion. >>> more legal action against meta platforms and allegations of the underaged users. the u.s. court denying the motion filed by the social media company to take over the legal battle the with the ftc who has accused meta the misleading privacy information to parents of underage users. ftc can push to make money as those in inn stagram fights wit tiktok for the users. >>> and tesla is in legal trouble with the labor relations board getting a lawsuit over illegal ly firing employees. the labor board alleging tesla allowed unlawful use of technology in the workplace and illegally denied the union organizing request from the employees. >> silvana, thank you. >>> we turn now to another part of the tech space. we are two days away from the one-year anniversary of chatgpt going public. we are focusing on the companies impacted by a.i.

stanley made positive comments. we had an upgrade the other day. i like hd. frank blake, when is he come on the now? >> i don't know. that's an open invitation. >> he watches. >> in spin class. >> i don't think he's doing that. >> probably not. >> spin? or watching "fast money." ? >> spin. just a guess. all right, kmom coming up next, we will head deep to the heart of texas, toque a hedge fund manager and see what kind of trades he's got under his ten gallon hat. all that and much more coming up on the show. >>> the obama overhang. can he turn the market and his whole numbers around? plus will madison square garden may be going to the dogs, cablevision is doing anything but. after its split with msg this week, is it time to start watching cbc? and could the next best media play come from blockbuster? why the ceo of this dvd rental company could bring dollars back into the dying dvd. all that when america's post market show continues. whwhwhwhwh >>> welcome back to "fast money." the poster board for this week's bounce is caterpillar, it's up 10% in three days. >> it's also down 22% in two weeks. so y

specifically the goldman sachs, the morgan stanleys, the asset managers as it relates to dodd frank legislation being paired back. >> is this what pops the -- did the trump -- does a trump presidency pop the bond bubble? >> yes, because what he is talking about with his policies are you know what he wants to do in terms of spending, you don't know what he wants to do or how he is going to meet it on the other side from the cost containment. right? he hasn't been clear about that. his policies are inflationary as we know them now. i had been not related to trump because i didn't think he was going to win. i thought it would be close, but i had been looking for the bond market to trade through the 2 percent recall. anybody who thought that the fed is not going to go in december is lunacy. >> we're eight minutes into the show and are have yet to mention health care, which is going to be noodles today. >> i did mention that. >> i said health care. >> guys -- >> not looking at -- look at all of us. >> i got to tell you. this is what traders and investors are talking about today. what you have seen t

join morgan stanley in supporting feeding america and your local community food bank. ♪ >>> welcome back to "worldwide exchange." here is franknd. starting with toyota posting a small quarterly profit despite seeing car sales cut in half it notes the pandemic continues to make the business outlook uncertain. >> shares of western digital down sharply the memory chip company disappointed investors different story for zynga after posting a 47% jump looking for things to do things like empire dragon. i hear it is popular >> never heard of it >> you and i may have to play remotely and be a lot of fun one thing we are watching is new stocks the parent of quicken loans. leslie joining us now with more on rocket companies. >> hey, brian. there was weaker than expected demand for this deal rocket company is the parent of rocket mortgage. was expected to be the largest ipo of the year. it fell short. the detroit based company priced below the range, offering fewer shares that was less than the warner brother's ipo this year. investo investors balked at the valued valued as a mortgage company rather than a technology company. is the lar

stanley. reports from yesterday. >> they're already on your. >> desk, frank. >> desk, frank. >> for the business (man 1) we're standingfor our right to be lazy. (woman 1) by sitting down. (man 2) and reclining back. (man 3) 'cause we work hard and want to relax harder. (man 4) we, the lazy, are taking back lazy... (woman 2) ...on our la-z-boy furniture. (vo) la-z-boy. long live the lazy. only servicenow connects every corner of your business so people can do all their work on one platform. no more mindless swivel chairing between platforms. or swivel chairing between apps. no more swivel chairing! i don't feel so good. what does he do here again? mostly that kind of stuff. will you push me back? no. economy. perhaps they need to call it something else. >> we know he wants to hold on to the nba. how much more will he have to pay? >> a lot of the revenue streams are guaranteed. >> the countdown is on. cnbc sport >> welcome back to fast money. we've got a news alert on gamestop, the meme stock popping after hours on news that it is considering investing in bitcoin and other cryptocurrencies. kate rooney joins us now for

stanley. brian, good morning. good to see you. >> morning, frank. >> how are you? >> all right. similar story here, brian.tic price target on starbucks than the rest of your peers. you're at 115 consensus right around 106. but at the same time, you think u.s, same store sales, they fall by 5%. china, same store sales fall by 10%. that's a bit more pessimistic than your peers. if i'm an investor, how should i read that? what is this saying to me or what you're saying? how should i read your views on this turnaround? >> well, i think everyone. >> knows this is still. >> going to be a tough quarter, right? i do think. >> that if you look at us. >> traffic, it will be a little bit less. bad than the prior quarter. >> but i think you're. going to. >> start to see an upswing in the coming quarter. and as we go. >> through this fiscal year, you're starting to see some of these small changes in us stores. i'm pretty optimistic that things can get better from here. so that's where, you know, we're in this for the longer term, right? >> yeah, i mean we're definitely seeing some small changes. we saw a big change at

frank has the luxury consumer trade. and the companies most impacted by china's weakening economy. morgan stanley'stfolio manager andrew is hanging with me today to talk about where your money is best deployed here, abroad, tactical, specific. let's start with eunice. what is the latest in beijing tonight? >> reporter: well, kelly, the restrictions not only apply to certain state agencies on a national level, but also at local governments, as well. they are reporting that apple watches, as well as air pods are on restricted lists at state firms, as well. and this all comes as apple rival here, huawei, had said that it's now taking preorders for another new, what it calls most powerful model of their phones. the company says that the new pro plus is -- has a lot of different features, greater storage and memory than the mate 60 pro, launched last week, when the u.s. commerce secretary had come to china. that phone has been operating at speeds close to 5g. this one, the company says has another homegrown highlight -- satellite messages via china's own satellite system. now, shares of huawei suppliers

but the a lot of the analysis, frank, has been that this still isn't going to be enough. morgan stanleytoday said the consumption stimulus steps were modest, and stockton says that the stimulus is still insufficient in their eyes to combat president trump's tariffs. >> all right. eunice yoon, thank you very much. eunice yoon live in beijing. let's get more on this story. we're going to bring in cnbc contributor derek mcneill. he's the managing director and senior policy analyst at longview global. good morning. always great to have you, especially during a week and a day like this. >> good morning frank. >> how are you. >> all right. so i'm looking at the target here. very ambitious target for china's economy for 2025. i want to ask you, what is the setting of that target? what does it say about the chinese government's optimism despite the trade war? and what does it does it give us a preview on what we should expect when it comes to government stimulus? >> well, i actually think i agree with eunice on this one. this was. a pretty ambitious target. expect it though. i think analysts. >

stanley. henao is here with those. silvana. good morning. >> hey, frank. good thursday morning to you.rapping its diversity targets, citing recent court decisions and executive orders by president trump. in a company memo, google's chief people officer says in the future, we will no longer have aspirational goals when it comes to diversity, equity and inclusion. google is the latest big company to drop diversity targets following similar moves by mcdonald's, meta, target and walmart. microstrategy is no longer micro. the software company and largest corporate holder of bitcoin, has rebranded as just strategy and unveiled a new logo with a stylized b strategy reporting a bigger than expected fourth quarter net loss. but the company is followed by investors more for its crypto holdings and not its business. the company says it spent more than $20 billion to buy almost 219,000 bitcoins in the quarter, and chinese online retailer tamu is steering users to items shipped from u.s. warehouses. following president trump's decision this week to revoke a popular trade provision. the de minimis e

morgan stanley sees a 20% chance of recession let's bring in kevin simpson from capital wealth planning >> frank, good morning >> kevin, you are saying investors are unprepared in general for all of the volatility they need to readjust how they look at equity they need to do homework when they are studying, what do they need to study dividends or cash flow >> it is all of the above. we heard the expression that it is all fun and games until somebody gets hurt it is fun and reeasy in a raging bull market. so many did get hurt with crypto or meme stocks a lot of newer investors and seasoned ones were unprepared for the volatility you did a great job yesterday, frank, highlighting the clouds names and growth names and thesis with the pull back in yields it was a meaningful pull back on the ten-year that trade is over we need to reset and rethink it plays into our philosophy like you mentioned if yyou own stocks with free cat >> i did tee it up i'm a home boy with my philly brother. you are especially focused on companies that have capital for earnings to afford dividends can you give us examples of

frank anthony palmer. >> alan n.polumbo. >> christopher matthew panitera. >> paul jay panicini. esesesesess >>> a change in command at morgan stanley, tapping james gorman as the next ceo replacing john mac. this is how margen stanley has been trading. it is up better than 2% on the day on the news mary thompson is outside morgan headquarters with more. hi, mary. >> reporter: hey there, melissa, john mac will remain as ceo. gorman will be stepping into the rode of ceo come january 1st. the company's other co-president, walid chammah, and them addressing the troops this morning in a sometimes emotional hour punctuated with a lot of applause. the firm has been tell graphering this traz since transition for a few months. gorming says there are key challenges, wub listen getting the sales and trading operation on firm footingally well as keeping the integration of the joint venture on track. as co-president, the australian native has been credited with getting that joint venture with the citigroup unit finalized ahead of schedule. gorming joined morgan stanley in february of 2006. at merrill, he's credited with improving profits, a fea

stanley cup, 9-3. what a feat for this franchise, so new and well-deserved frank, we send it back to you. >> frances, thank very much. >>> turning our attention back to shell, shares up in the prae market in the u.s. after boosting its dividend by 15% and doubled down on its fossil fuel production strategy. joining me now, alan good. alan, thanks for joining us on this news. >> glad to be here. >> the announcement today, they're increasing the dividend, doubling down on oil what's your price for this stock? what's your rating did it change on this announcement >> yes, i think the overall announcement is positive but a little less than what the market was looking for. on the oil side they said they were going to hold production flat at current levels to 2030 the current decline annually is 1% to 2% i think they were looking at a complete reversal on that and looking for growth they were going to go to the lng business then we got some cap ed productions. then there's the increase in the shareholder return target which brings them in line. so i think what we saw earlier again is positive but maybe not everyt

frank up to the eight largest u.s. banks could be between 22 and $34 billion annually. >> and marcus stanley of americans for financial reform thinks these higher costs might benefit consumers. matt mccormick says consumer wills take it on the chin in a number of ways. good to have you with us. the change in the estimate of the costs, it seems to me, has less to do with the regulatory burden than it does with what will now be sort of off limits for banks to do, a change in their business model, have i got that right? >> sort of, tyler, i think you look at regulatory interpretation from my understanding only 200 of the thousand pages of dodd frank will be somewhat procluded will make it more difficult. but the revenues are still down roughly 5%. so it's difficult for them to get money, i think they will be more conservative. i respectfully disagree with marcus, i think it will make it more difficult for them to loan money and be an ultimate result in higher costs and lower loans that could impact banks and the share prices, and we don't recommend owning a ton of them at this time. >> how is it possible that higher regu

. >> thanks, frank >>> coming up here on "worldwide exchange," the one word that every investor needs to know today plus morgan stanley'sith her picks. >>> and cnbc is celebrating asian american pacific islander heritage month in may. we are celebrating our business lea leaders. >> we're proud to be celebrating our 46th anniversary as an asian and founded led independent business one reason we had so much staying power is because we celebrated our asian roots it permeates everything we do from the east meets west supply and supply chain and one factor is a family owned factory in the the fashion business has never been easy. we hope our message continues to resonate with our customers. - double check that. eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - yeehaw! - do you have a question? - are you a certified financial planner™? - yes.

you know, we've talked about this the other day, jim goram at morgan stanley says he doesn't want to see dodd-frank go away, he wants to see changes on the fringes. there are people like jamie dimon who has been called a dodd-frankenstein. >> i'm going to push back on that a little bit. i think both of them would agree that right now the amount of money they're spending for lawyers to comply with all these rules is really hurting them. hundreds of millions of dollars of expense. obviously the fines that have come out of washington have been in both of those companies ceo's minds, exorbitant. maybe gorman is saying we don't need to repeal the whole law, dimon is saying repeal the whole law. washington is unifying in saying these regulations have been a big albatross for us. >> rick, how much is the dollar and bond market a leader for what's going on with stocks? we are seeing a continuation of the correlation dollar weaker, bonds and demands. that's the reverse of the trump rally. >> i think that the fact that equities haven't had bigger retracements with the huge moves that we've seen since early n

frank. great to see you. thank you very much. >>> turning now to our global briefing, with start with morgan stanley cutting at least 50 investment jobs in asia in response to the ongoing slump in china. it's the biggest layoff in years after laying off people last year. it fell 12% in the first quarter. >>> byd is out with three new premium cars. it plans to show cause the autos at the beijing auto show next week. the lineup includes a plug-in alternative with high horsepower. >>> uk inflation falling 3.2% in march, narrowly missing estimates. it with us offset by prices at the pump. investors pushing out their bang of england expectations in response, with the first coming in cement or november. interestingly enough, we had a guest in europe who believes they're going to do a cut at their next meeting. >>> coming up here on "worldwide exchange," we have the one word every investor needs to note today, plus our next guest says the soft fed landing and the u.s. economy may no longer be on the table. >>> be part of the changemakers. secretary gina rahman toe and actress drew barrymore are going to define how they view leadership.

stanley. >>> coming up, pollster frank luntz joins us to discuss the latest from washington as congress readhment vote and then nick pinchuk joins us, the ceo of snap-on tools. it lives here and here- on your iphone, and it will save you 6% on holiday gifts at apple; like iphone, apple watch, airpods pro and so much more. ♪ apply in as little as a minute, right in the wallet app. apply in as little as a minute, johnsbut we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you. [ drathis holiday... ahhhhh!!! -ahhhhh!!! a distant friend returns... elliott. you came back! and while lots of things have changed... wooooah! -woah! it's called the internet. some things haven't. get ready for a reunion 3 million light years in the making. woohoo! -yeah! . >>> the house judiciary committee, 658 page report was released overnight it outlines two articles of impeachment against president trump. abuse of power for withholding aid to ukraine while pressuring the country to investigate political rival joe bi

microso morgan stanley gave it some love the other day. frank blake's done a great job.alance sheet's in great shape. reduces the number of stores out there. running it better operationally. i like home depot. it's not going to move like lennars and dhis, it's not ta type of casino play but it's a great company, well-run company, a great-performing stock. >> quickly, let's take our position on a trio of casual dining stocks out from hours. cake, panera, do you like the notion the consumer's spending on on trays and appetizers. >> i like the fact they're coming back, like you talked about yum last week. i don't see it yet. i do have to comment, though, matt nesto's report on the mid caps performing well, that's a sign credit is starting to look easier. that's bullish for the market. >> going to take a pause on "the halftime report." on the "fast," chart master, names that are key to the breakout. weather shutting down d.c. for three days, should obama use the opportunity to reboot his agenda? "halftime" continues after this. >>> correction protection plan. a greek tragedy

stanley cup champions! touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports. >>> the drop in cisco. frank is back with those >> cisco falling nearly 6% those beat estimates but the company is giving weaker than expected outlook for the fourth quarter. seeing revenue falling between 9 to 11% cfo is retiring. cost cutting have changed during the pandemic shares of vroom wider expecting a bigger than expected loss. saying the drop in demand and uncertainty around vehicle pricing early on lead it to reduce inventory in the first half of the quarter. the ceo will be on 7:45 a.m. earn time. aspen technology soaring topping estimates prior to these results. the stock had been down about 19% this year. back to you. >> thank you very much. >> in global news, huawei is back in the cross air. showing their supply chain with other technology more from china. >> thank you there was a little provision tucked into the defense spending bill that will come into fruition two huawei related events. the expiration was a 90 day reprieve they don't have a whole lot of business in the u.s some of those smaller

stanley. >>> welcome back to "worldwide exchange." let's get a check of the top corporate stories with pippa >> frank, jpmorgan chase is resu reshuffling the management treatment for the time that jamie dimon is not longer in charge the current co-head of the consumer bank will be co-head of the commercial and investment bank along with a veteran leader of the trading operations. mary ann lake will transition to sole ceo there are a handful of exe executives with the shot of succeeding dimon as ceo. >>> and salesforce is laying off 700 employees. the cuts will comprise 1% of the 70,000 personal work force and would be the latest to hit the tech sector. if confirmed, it follows the cuts from a year ago when it let go 8,000 employees or 10% of the global work force. >>> it is not just salesforce. levi strauss will layoff at least 10% of the global corporate work force as part of the restructuring. this is coming after the company expects weaker sales in the year ahead. levi says the cuts will take place in the first half of the year and could impact 15% of corporate employees. frank. >> pippa, thank you very much. >>> chiefs against the

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