that's just the way i think powell will say it >> to bob pisani and the reaction on the floor of the new york exchange on the major indexes. bob? >> reporter: fairly modest move on the major averages, tyler and down here it's pretty much, as we were discussing, the belief is that the fed is going to lean on the delta variant as an i told you so moment and certainly pushed back against any questions about accelerating the timetable for tapering and interest rate hikes. where does this leave the stock market we have earnings estimates continuing to go up every single day for the third quarter and the fourth quarter which is what matters. number two, we have margins near record highs there is no erosion in the margins despite concerns about higher costs in most cases passing on prices. what's the immediate threat to the market most people down here believe it's not the federal reserve anymore. the threat to the market right now is the really high valuations we're trading at multiples that are still really elevated. we're going into a seasonally weak season, august, september, october, an

bob pisani, kate rogers, and michael yoshikami.not to leave their vehicles unattended, gm is recalling some models. what it means for the future of electric vehicles next ice works fast. heat makes it last. feel the power of contrast therapy, so you can rise from pain. i've spent centuries evolving with the world. that's the nature of being of cthe economy.apy, observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time. gold. agile and liquid. a proven protector. an ever-evolving enabler of bold decisions. an asset more relevant than ever before. gold. your strategic advantage. >>> shares of general motors are down today after they announced a recall of some chevy bolt models phil >> kelly, this is the second recall for the chevy bolt when it comes to dealing with battery fires or the potential for battery fires. there was one back in november that did not fix the problem so, now there is a new recall. and this one will impact a little under 69,000 chevy bolts, 2017 to 2019 m

we've got bob pisani at the new york stock exchange to explain hey, bob. >> hello, tyler. are you confused yet what happened to all the worries about the covid variants oh, that's so yesterday. don't worry, folks, wall street has an explanation for everything the comments i'm hearing from some of the trading desks about why we're having such a big reversal today some people are worrying well, you know there's an asset allocation program going on. we're buying stocks and selling bonds. then i hear, you know, bob, there's heavily oversold conditions out there in small cap stocks and travel and leisure stocks and industrials because of that we've got a lot of people going out and buying the dip. pick one of these, folks, and you're just as didn't as all the other ones take a look at all of the reopening stocks all of them yesterday down 4, 5, 6% guess what, they're all up 4, 5 or 6% today. how about the anks remember yesterday all those big superregional banks like zions were down 3, 4, 5% they're all up 3, 4 or 5% today. how about industrials? remember yesterday ge, textron

. >> i know our bob pisani has a couple of questions as well. bob? >> thank you and congratulations, mr. stevanato >> thank you >> i want people to understand what you do. you're a very critical supplier for the medical infrastructure of the war on covid. you make the glass viles, the drug delivery systems, the injection systems all over the world. i understand you have 90% of that business for supplying covid treatments around the world. is that accurate >> absolutely. so, stevanato is a company that specializes in the glass enclosure for the pharmaceutical industry we produce this, this, and this type of product. we produce more than 10 billion solutions every day and every day more delivered to patients so, we were quite present in the vaccine space since more than 20 years. this is why we are so proactive in the contribution for the covid-19 but at the end of the game, we are a bit small portion. 20%, represent only 5% or 6% of total revenue. so, we are so proud that we have contributed to the vaccine space for covid, but it's going to be a minor

bob pisani has the numbers >>> 4. 3 advancing the declining stocks so it's somewhat of a mixed market but it's good enough for all the major indices to hit new highs, the dow, s&p and nasdaq now in negative territory in the nasdaq, but it's there what's happening is cyclical stock to the floors. siically cal dropped on monday material names, energy names, these stocks are all 7, 8, 9% above where they closed last monday tough day. and even consumer reopening stocks, and i'm talking about the cruiselines, for example like carnival and the airlines like united and american, live nation, delta. these also are about 10% off of their lows at the close last monday the story, of course, we're waiting for big tech stocks to report this week but the trend in earnings with about a quarter of the s&p recording, very, very clear. generally it's good news earnings are continuing to rise, and the estimates for the third and fourth quarters are going up not as much as they were in the first and second quarter, but still rising revenues are also rising they're stronger than expected there's concerns

in this rapid fire joining me to break down the headlines we welcome bob pisani, seema mody, and michael definitely going to start with the china stocks today where it is a sea of red across the board as panic selling sets in people like kathy wood are dumping positions. more than 40% off their highs, the downdraft is starting to bleed into tangential etf around the market it's not just about if you own china ets. it has a 20% weighting to china. top 10 holdings down more than 10% this month and 7% this week. how wide ranging is this crackdown? meekal yoshikami, we are bladder you are here for this discussion today. what is your advice to investors? >> be very, very careful about what's happening in china. my contacts in china, corporate contacts in places like where alibaba was founded are all freaking out right now because the government has really decided to flex their muscles. when the government decides to do that, it has a chilling effect look what happened with tesla earlier this year where they literally were called by regulators to report why tesla was having quality problems ac

speaking of that broader market, let's get to our bob pisani who's got more for us. >> we've got twoll living in a post-vaccinated world and the vaccine will not go away that's a problem second very high valuations leaving the market vulnerable to a downturn those problems are colliding today. look at the sectors, the weakness is in the cyclicals, the stuff that did really well on hopes that the global kpli would be reopening energy is weak, banks are weak, techs in the middle of that, consumer staples, defensive name doing a little bit better. this makes a little sense. the downside leaders, they're all cyclicals. you see the cruise lines, you see airlines you see copper stocks, you see the oil stocks like schlumberger all week generally these are characterized as cyclical names. the market internals we've been talking about this for a couple of weeks traders have had a problem with the way the market's looked. the momentum, the percentage of stocks above their 50-day moving average, momentum indicators have been slowing, breadth has been weaker. the advanced decline line has been w

eastern time sticking with the robinhood theme, leslie picker, kay rooney, bob pisani, i think lesliet with some indications. >> that's right. early days it opened 15 minutes ago or so this is the process where they pair orders together to get a sense of what price they should open the stock at. right now we are hearing orders around $40 a share but this is on pretty low -- a low amount, 2.6 million shares at this point in time. we won't start seeing activity until that amount pretty much doubles, until you get 10% of the float here that's matched to start getting real indications in the windows that we typically see. now, i have been chatting with investors. i have been chatting with other sources this morning to kind of get a sense of what's going on, what's sentiment like, how this deal is different. we talked about the retail aspect and allocation there. ceo vladim vlad ten i have declining to give a number. we learned that number is closer to 20% another thing worth watching for is the actual infrastructure and pipelining of robinhood. if you allocate 25% of this deal to retail i

. >>> i'm bob pisani is long-term inflation a concern or not etf, which invests in companies, expectedbenefit from inflation. everyone wants to believe which etfs are we seeing the most today? >> throwing the baby out with the bath water here, bob seeing momentum, high beta, quality, small cap arkk up within the last hour, good for those aggressive stocks as well. mostly glv, the flagship, gold etf. a lot of other etfs in the commodity space that have done very well, up 20 or 30%. how do you decide what stocks had benefit if inflation stays higher for longer? give us two or three that are in this and what your thinking is. >> sure. this is a very long, bumpy process. you don't want to make a binary bet where you can impair a lot of capital we focus on companies that have hard asset exposure, what you're going to benefit from inflationary sources but capitol light i mean minimum working capital, minimal balance sheet leverage so they can compound. >> you own land. you own midland, precious metal companies. >> exactly they're benefiting with very high margins from the capex and other com

. >> yep health care, talked about it bob pisani for more on the broader markets as well. good morning. >> jim's right a mixed take two to done advancing to declining stocks defensive move from the open moved up from there. utilities led at the open. reits, strong, best performing this month as well leading. industrials up a little bit. tech's up as well. call it a mixed take the way to keep it the big issue, two big issues here what about this covid variant? how can we look at it and what will the federal response be if it doesn't go away two issues earnings are coming out. will ceos be more cautious in comments about reopening will that affect the earnings outlook or psychology at all and secondly, federal reserve. might they be more cautious ending the bond buying program if there are major issues going forward in august and september, october? limited lockdowns of any kind at all? two issues one thing is clear, we are very oversold in large parts of the market take a look. using rsi, momentum indicator, short term when at or below 30, very oversold energy, russell 2,00

bob pisani is down at the nyse with more today. bob? >> reporter: hello, kelly. good to see you. the etf tidal wave continues and it's accelerating. year to date u.s. etfs have taken in $488 billion and that will easily outpace the roughly $500 billion outflows in 2020. that was a record year so you see this is going to be huge this year why are etfs so popular in general? what's causing the record in flows? they have many advantages over mutual funds they can trade intraday, number one. number two, they have lower fees, much lower fees. number three, they're more tax efficient. but several trends are accelerate that go are benefiting etfs. first, inflows into passive or index funds continue as passive investing continues to win out over active investing. second, even those active managers are starting to adopt the etf trade. and many mutual funds are starting to convert itself to an etf structure. finally, while there are 200 etf providers there's only a small group of winners, and i can count them on one hand the top five etf providers 81% of the assets under management look at

let's bring in correspondent bob pisani at the new york stock ex change. like this very often. last fall we saw them all the time. >> no. the problem, ali, is the market gets certain narratives in its head. you know, the story they've had for a while is the covid thing is slowly going away and maybe it will be regional outbreaks that will be manageable, but problem is that the virus isn't going away. the delta variant is a bit of a problem. now the people that buy the stocks are starting to say, wait a minute, maybe the reopening is not going to be as smooth as people thought in the fall. all of this travel and these leisure people are going to do, going out to the restaurants, maybe they won't be doing it as much. that will impact the earning situation, and these stocks are very high priced. the market was at a new high just recently, so now they're saying, uh-oh, maybe we're wrong on the earnings and the assumptions about the reopening, ali. >> yeah. the market is up a lot in the last year, better than 30% on the s&p 500, better than 13% this year. >> th

so will stocks become a victim of their own success let's bring in bob pisani. >> reporter: it's another new high for the s&p 500, folks, up nine out of the last ten trading sessions the nasdaq had a new high. the dow just shy of that new high, could close today. here is the problem for the second half. the bulls have the momentum but the math is limiting the upside. that happens typically, but we haven't had even a 5% correction since september. there's no chance to say stocks are a good value now that we've had a correction of 10%. that's limiting the trader enthusiasm another problem is the p/e ratio. it's pricey. 20 times 2022 estimates, that's very high. it almost certainly will not go any higher because of the start of the fed's tapering programs and growing 10% or 12% next year is good it's not going to grow as fast from here on out growth is decelerating but still up the one hope the bulls have to cling to is the economic expansion will go on longer and stronger but we won't know that for another several months and by then the fed is likely to be a headwind traders don't see a re

opened below where it priced let's bring in bob pisani and michael santoli with more thoughts bob, what you hearing on this one >> well, i have not, and i've been covering ipos for 24 years. it's been a long time since i've had this much commentary pro and con. people seem very passionate about this one they love it or hate it. there's a lot of obvious concerns people have people telling e, look how dependent they are on trading revenue. $30 billion valuation dependent on trading you better hope trading stays very, very high. then the whole issue about the regulatory situation it's a gameification they are exposed to crypto gensler is going after all of this it seems to be a very serious risk that people have investing in it. and then they keep saying we're unique i see tons of competition. sofi, fidelity and vanguard and schwab out there schwab bought ameritrade morgan stanley bought etrade a lot of company interested in buying companies like this everyone makes a thing about their 22 million users that's nice. but the assets are pretty small. $4500 average user there vanguard has $8 t

that's our bob pisani.the markets here dow goes green the bond report, take a look at how treasuries are faring. yields are mixed ten-year ticking below friday's high but above the 1.25 level on thursday tomorrow we're going to get the latest inflation data and later in the week, fed chair powell, his semiannual policy report 'rba ia mewee ckn mont (judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the market. (other money manager) but you still sell investments that generate high commissions, right? (judith) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money? only when your clients make more money? (judith) yep, we do better when our clients do better. at fisher investments we're clearly different. muni

is that a risk for investors bob pisani was talking about whisper numbers that were even higher than where we are already starting from. >> yeah, you know, look, i think what we're going to see is that there is going to be some nice momentum coming out of some of these surprises with the earnings i'm highly bullish and confident that the tech stocks are without question going to lead the way that said, you know, there is a lot of price to perfection within the market right now. so we need to make sure those numbers are met, the stability, but we anticipate that we're going to see nice earnings surprises as well. >> lo, we have been talking about china all morning long the big story was didi i wonder long-term, i mean, to so long, china, with its billion population, was seen as white space for growth and all kinds of industries. and judging from the way regulators is have been acting in the short-term, how much of that story gets capped off at the knees? >> yeah, look, i mean, the chinese tech giants, they lost over 800 billion in value since february so there are significant concerns

those government actions have sparked serious debate about chinese equities over here bob pisani joinsgreat month for u.s. stocks. it's been a disastrous month for china socks. investors in asia in general, just take a look, the big cap china stocks are down. they're down again by ali gbaja-biamila, pinduoduo, a month intefrom hell in the casef ten cent music japan was down, korea down, thailand, the philippines. they were all down so far this month. the concern is that the regulatory risks are much greater than investors had anticipated. in fact, risk from both china regulators seeking to rein in everything from tech to education to food delivery andrieand risk from u.s. regulators calling for more disclosure from chinese firms regarding their ownership structure. after a decade where u.s. investors have increased their exposure to china, a lot of people are debating whether china should be considered a completely separate asset class from the u.s. and from the rest of the world, that owning china on an equal cap weighted basis is not going to be feasible due to the very, very high re

it's time for rapid fire julia boorstin, bob pisani and nancy tabor.out after the bell investors are always watching the subscriber edition it's always a bellwether on where we are in the shutdown reopening trade. it added 26 million new subscribers but less than 1 million new users in the first quarter of this year they're expected to add only 1 million, julia stock is flat. what do you think the whisper is that are expectations pretty low, do you think? >> well, look. i think analysts are really hoping they will surpass the 1 million number that 1 million number is so low and it leaps forward also concerns about a saturated market the real question, kelly, is what they say about the second half of the year threat flicks hinted they expect growth to pick up in the second half of the year analysts are looking for specific guidance for third quarter subscriber growth. the number analysts are looking for is 5.5 million subscriber net editions that is the number i watch in terms of guidance. kelly, any commentary you might get from the commentary, especia

several more names coming to market today let's go over to bob pisani for the sizzling start to summer listings what's going on over there >> reporter: good to see you, eamon. i'm happy and unhappy. the tidal wave of ipos continue. i'm unhappy about the pricing action that i'm seeing let's take a look at f45 we were happy, mark wahlberg was here we got pictures with marky mark. it was a great morning i enjoyed myself look at this price at $16 it opens at $17. so everybody makes money right at the open. it's $15.80 right now. it's below that -- $2 below where it was right at the open a membership col sship collecti at $14 opens at $13.15 and has broken even, $12.98 look at phillips edison on the nasdaq a lot of people interested in this they do neighborhood shopping centers. a big emphasis on grocery stores as an anchor for the neighborhood shopping centers. so they price at 28. they go to $28.43. it's $28 nothing is happening this has been a tren a little bit of money made on the first day and then really nothing after that take a look, 15 ipos this week the tidal wave continues the av

let's get back to the broader markets and take a look, bob pi pisani bob. >> hello there david, anothered stronger, all sectors were on the upside a little mixed five seconds in techs was leading early on, industrials and materials. energy is the big laggard this month, that sector down about 6% we're in the middle of earnings season not a lot of big companies today. i just want to note charles schwab did come in, they were basically a penny shy of estimates. a little bit unusual they just keep raking in new accounts, 1.7 million. they have almost 4 tl$4 trillion assets under management. remember that big runup on the meme stock tratdding in january, february, march, volume down 10%. take a look at schwab. schwab is largely a bank they moved up, topped down around february or so on the rates and on the meme trading. not a lot of surprise, schwab's been a bit sideways since then a lot of anxiety out there, mike was talking earlier about the markets. you've got dueling narratives. to explain why the yields are low, the first and obvious explanation is what janet yellen said yesterday the

. >> bob pisani. that's going to do it for us on "squawk on the street. "techcheck" starts now >> happy monday welcome to "techcheck. today a massive sell-off for stocks, dow is down about 770 points at the moment with the nasdaq approaching its own 2% drop president biden attacks facebook kara swisher weighs in on a new war of words between potus and mark zuckerberg. and later, the newest partner, one of them will run the crypto fund and joins us this hour. we're going to start with this sell-off, mike what is driving this and why is the dow down so much more than the s&p 500? >> yeah, jon, it is a growth scare, a global growth scare, something that has really been -- actually having its effect felt below the surface of the market for several weeks i think the dow is more that index that will be more exposed to the global recovery theme, taking the brunt there also that's where the outperformance was in the earlier part of the year average stock started to decline, peaked five weeks ago in the market. it has been a lot of the very large megacap stocks, t

i'm bob pisani the battle continues by waiting by fundamentals or market capitalization wisdomtree launchedrowth and momentum etf that seeks to capture the upside of aggressive growth with lower draw downs and volatility neat trick here. let's talk to the man in charge and see if they can pull this off. jeremy schwartz is global head of research at wisdomtree. this is an interesting attempt to capture two fundamental components that investors have become very intrigued with in the last decade. aggressive earnings growth combined with momentum how do you decide what goes into this index >> we have really unique partners on this index as well some of the earliest growth investors, bill o'neil, the founder and investor of business daily has the methodology for identifying growth stocks. created this unique methodology saying when you go to growth stocks, most of the indexes have no regard for tactical entry points, tactical exits how do you not find stocks overly crowded and so this is hopefully going to give you some of those prime o'neil-tile growth stocks with those downward volatility adju

should investors do about it >> we have team coverage and will start things off with who better than bob pisani tracking the market action from the new york stock exchange. robert >> reporter: the markets are living in a post-covid, post-vaccine world but, of course, the virus has not gone away and that's the major problem. let's look at the issues the markets are dealing with first, of course, is the covid variants and how serious are they secondly, high valuations and, third, the peak growth story they're all combining to see a 2% to 3% decline here. if you look at the payment process, a very simple way to express the concern people have about not going out asmuch maybe anymore. you see companies like visa and mastercard down notably, western union and global payments. they're on the weakside. the usual reopening names, the cruise lines, the airline companies, the hotel companies like marriott and the restaurants. they're all notably weaker as well then we have the energy companies. remember, we also have a deal with opec going on so oil was weaker and, regardless, would have been down but th

it's been the best quarter for growth in more than a decade bob be pisani has that story now. bob? >> reporter: rahel, this has been an extraordinary quarter. there's been a lot of talk about peak everything. what does that mean? it means the kind of numbers we're seeing in the second quarter. we're expecting the s&p 500 to report earnings now 76% above the same period last year. remember that was the depths of what we saw in the covid crisis. it was 54% in april. 65%, 78% this is remarkable normally companies beat by 3% to 5% on the whole. analyst have is been way underestimating the extent of the economic recovery. there are other things helping move the market forward. number one is third and fourth quarter. the forward estimates are rising as long as they're still going up, that's good. they don't have to go up as fast as they were going up in the first and second quarter but still rising is a good sign. secondly near record profit margins, 13% in the first quarter. almost 13% in the second quarter. those are records. we're not seeing any significant deterioration in the margin

again, everyone is trying to reprice risk right now >> bob pisani, thanks for that let's get to josh lipton , let's dig into the nasdaq. down four of the fifth dates the index is now down about 4%, you're still up about 10% so far in 2021. big tech not immune to this sell-off, either. >> also edges lowers here, that is the long test losing streak since december back to you, wilf. >>> let's see what kind of technical damage we've been do you? yes, the major averages were near record highs, but the auto, the airlines, this has been going on for weeks, down 10% to 20%. what do you see coming next? >> there's definitely been a rotational pullback, and even still we're not seeing a lot of breakdowns as you mentioned, this is a real retracement for the faang stocks and the others that's definitely an important thing to note. that's measures like the vix, and those spikes tend to last no more than two to four days inch i see that as an encouraging sign we also have oversold readings oar extremes, so the ratio of advances to decliners -- those have been associated with a pullback my sense is

bob pisani as you know, jim, is following the action on the floor of the stock exchange today, hey, bobrning, scott we are sitting right at the door of a new high on the s&p 500 we'll keep an eye on that. what a turn around here, we're now in positive territory. take a look at the leadership. bank stocks which had a terrible start to the week, they're now positive for the week. tech's the leader back again, up about 2% industrials are up about 1%. energy is still struggling because oil is coming off of that high of $75 back down after the opec agreement we have had an extraordinary quarter so far this is the mother of all earnings reports, folks. we are one quarter of the way through the second quarter, and the numbers keep going up. 76%. that's what we're looking at, an increase compared to the second quarter of last year you don't see these numbers very often, but we started back on april 1st, 54%, then it went up to 65%, now 76 this is just amazing how these number numbers keep going up. let me show you why the stock market's holding up, why prices are holding up so well number one,

. >> bob pisani, you can now take it away. >> thanks, david good to see you. 1% from the new high, folks, keep an eye on that nice to see the cyclicals rebounding a little, but we've got a ways to go you look this morning, you see energy stocks, you see material stocks, you see industrials on the upside, even beating tech stocks right now that's what you want to see. that's the sector that has had the toughest time of it. if you take a look here, you know, you were talking earlier the guys about how to deal with the covid variants it's very simple it's a known unknown that's a little annoying because it implies that we know that the covid variants are there, number one, but we don't know the impact on the economy or on earnings so it's an uncertain narrative we're just going to have to learn to live with it. it could impact us in terms of earnings and the economy, and personally, it may not we just don't know we're going to have to live with it meantime, we've got a great economic recovery that's going on what we'd like to see a little bit is the cyclicals com

again, i just can't face -- >> we do have dow 35k once again and an s&p record high let's get to bob pisaniket goes up and still not afraid of inflation, despite all the talk about it banks doing okay today that's nice to see we've had titanic numbers, not a lot of price movements recently in the banks tech's new high, energy okay, industrials up nice little mix in terms of the markets. i don't normally put up the earnings beats the market is expecting titanic earnings expectations right now, and on average captains have been beating about 20% the last two or three quarters, and they've got to keep that up, and so farther this is the percentage they're beating. we've had analysts not even come close to some of these estimates today for bank of america, pnc and citi group the most bullish analysts were not as high as the actual numbers came in. this is really quite amazing if you look at these numbers. there's a variety of reasons for it the important thing is the market believes it if you look at the board here, what we're doing here most of these stocks are holding up fairly well. citigrou

>> we're down 69 points here, s&p holding 4909 let's get to bob pisani. >> happy monday, everybody flattish open but the fundamentals about as good as you could possibly ask for, and the cyclicals are back leading today. so energy is back up bank stocks are back up, industrials started up they're flattish right now tech's been a little bit weak today. we've seen some weakness in some of the semis, nvidia, microsoft, oracle down a little bit but not much there you see the crane shares down 7%. that's a 52-week low those stocks, many of the internet stocks many of them trading in china as well as here all to the downside. when i saythe mfundamentals are about as good as they get, we've been emphasizing how much earnings are beating expectations, but revenues have also been beating rather dramatically by 4, almost 5% that's unusual historically revenue beats have been very modest, 1 or 2%. in the last several quarters they've been going up 3 and now 4% in in quarter at the same time, q3, q4 estimates are rising with revenues very, very strong this place into a very, very big important cycle he

. >> with that, dow's down 140, and we're back to 43 55 let's get back to bob pisani on a busy day backfloor. >> i'm just so happy, guys, because we're back to normal, not just that mark wahlberg and adam gilchrist are here, but people are on the floor. hundreds of people walking around it's like the old days, watching everybody become wealthy, frankly, and let's hope it continues for them we've got three ipos, the fitness center, we've got a club a and a shopping center. obviously we're waiting for f45. here's our people that are going to be handling this. it's probably not going to happen my estimation price right in the middle of the range, 15 to 17 was the price talk here. you heard adam gilchrist talking about the company, and there's our man, of course we have an indication peter. >> 17 to 18, you saw it here first, first indication 17 to 18 for f45. any idea when this might happen? >> i think we have some time it's going to play out over the next hour or so. >> this is the man in charge, pete gee awe chi we'll talk more about that i want to talk about membership collective this i