stocks drop and jamie dimon casts doubt on the economy. the countdown to the european close starts now. >> countdown is on in europe. this is bloomberg markets "european close," with guy johnson and alix steel. [bell ringing] anna: welcome to bloomberg markets the european close. guy johnson is off today. i'm anna edwards with alix steel in new york. after an hour until the close of the european markets. we are weaker across europe right now. on the stoxx 600, down by .7%, but this seems to be a story coming through the u.s. that has pushed its way across the atlantic. lots of this session we have been without lots of direction, then we have the data at the top of the last hour from the u.s., which seemed to be decent, reinforcing expectations the fed could hike. got gloomy headlines on the economy from jamie dimon. they are all hitting and about the same time, so the net result was weakness in risk appetite. down by .7 percent, most sectors in negative territory. brent crude up another 1.2%. we are showing you the august contract now. try

victoria, who has it right jamie dimon or marko >> dom, look, i never want to go against jamie dimon, but marko -- we're more in his camp than jamie dimon at this point you talked about the uncertainty in regards to the fed path will we get a soft landing or what do earnings look like at the same time, you are looking at an economy with a strong labor market. household balance sheets look good corporate balance sheets, although we see margin compression, balance sheets look good as well you typically don't have a recession with these factors in play we don't see a recession like marko said in 2022 second half of the year for the fed will start to work through the economy with the lag perhaps that is a probability. we see more volatility and perhaps a slowdown, but not recession. >> if that is the case, slowdown or volatility, does that mean folks should be out buying dips in the market? >> we like looking at opportunities in the market. we're not saying every time there is a full bag go all-in. you need to find names within the sectors that pulled back and have quality earnings. that

as jamie dimon said today, all war is bad. despite pointing to what you call some bright spots, there is this hurricane down the road, and analysts are unable to predict what the size of that ob. -- what the size of that will be. haidi: what is he doing to try to prepare for those meteorological disasters? >> he said the bank is bracing itself. he said that we should brace ourselves. he said the best way to prepare for this in the next go around, he talked of the link a fortress on balance sheets. he also did point out that banks are in very good shape. bancshares drop and the shares in broader financial indexes fell. chinese investors are already on edge. shery: out of curiosity, super quickly, we have also heard that the u.s. market could recover later in the year. why are we hearing these two different things from j.p. morgan? >> i think j.p. morgan and other banks like bank of america, they also do see the u.s. consumer in pretty good health. jamie dimon said today they still have six to nine months of spending power and t

first, jamie dimon warned of economic hurricane and now elon musk freezing hiring at tesla. straight ahead. >>> frontier airlines sweetening its bid for spirit air we have details and the first on cnbc interview the ceo of spirit. >>> it is jobs friday. the big employment numbers due out at 8:30 a.m. >>> it is national doughnut day and "squawk box" begins right now. >>> good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with brian sullivan joe and andrew are out today things turned around yesterday a major move the dow was up 1.3%. s&p up 1.8%. it was the nasdaq that was the big winner up 2.7% yesterday. by the way, that put all three of the averages on pace for a positive week for the second week in a row. there will would be big news

what do you make of jamie dimon's comments?, i think jamie dimon has a very good window into what's going on with europe where the hurricane is sitting and spinning right now and it's probably category 5 area so he was basically telling those of us in the united states that, you know, it's very possible that that storm transitions across the atlantic to us at a time when the federal reserve is draining liquidity from the system the, raising interest rates and now trying to at least run off some of the balance sheet to try to tame inflation. so that's a really difficult combination because markets are not accustomed to that. we're accustomed to the opposite where we see federal reserve lower rates and flood the economy with money. since we're not used to that, basically we're probably hiking into a slowdown so i think that's what jamie dimon is trying to tell everybody is that maybe the fed is a little bit late to the party on inflation but actually it might turn out to be to their benefit. it might allow them to slow down the p

carleton: jamie dimon said he sees in economic hurricane coming. what was most striking is a week ago at jpmorgan investor day jamie dimon talked about the storm clouds could dissipate which he was worried about hurricane he would tell you. wall street is wondering what happened in the last week? there has not been much new data that wasn't worried about in the market. that you have elon musk saying he has a bad feeling about the economy but if you want to go on a rosier note for this week we did have bank of america ceo brian moynihan and john waldron it acknowledging the risks in the market as the fed is trying to cool down inflation but they were not as gloomy. jack: there were some layoffs we have seen recently. carleton: a number of companies that benefited during the pandemic announced layoffs some have been coin-based, tesla and telethon. those major pandemic plays. jack: you have been watching meme stocks throughout the pandemic, game stop in particular just announced earnings and the stock popped 10%. jack: i try not to watch them but you

central banks are moderating policies jamie dimon said negative rates up to the point were a disaster. it begs what happened to dimon's viewpoint in the last week it was like somebody took the brakes off calling himself a red blooded free market and not woke he is in charge of one of america's largest lenders. what did you make of the comments >> the details he gave of the outlook was interesting. we see the massive repricing in bond markets already in anticipation of normalizing policy what dimon said we should expect a lot of volatility moving forward and the fed retreating and treasuries available to investors will balloon that will result in market volatility erhe raised the point that euro is vulnerable. vulnerable to rising commodity prices this is a fascinating dynamic. is europe where the u.s. was a few months back? we hear pressure to think about not only raising interest rates by 50 points, but not only 25. dimon says europe is not taking proper actions to protect europe from what will happen in oil in the short run. of course, europe is very h exposed to the price of oil an

shery: jamie dimon one's investors to brace for increased economic turmoil with unprecedented challengesrom russia's invasion of ukraine. >> it is a hurricane. that hurricane is right out there on the road coming our way. >> we will be speaking with the national security council senior director for europe. shery: and china orders state-owned banks to offer a $120,000 credit line to stimulate the economy. we have the likes of big tech names leading declines. we already heard from morgan stanley, and that really sent pressured on the markets. we also had treasury yields continuing to climb with the short and really leading gains, very sensitive to policy. wti under pressure in the asian session under well. we have seen this rise but paring back gains slightly. we heard from the biden administration that they will continue to engage with oil producer saudi arabia. of course, we have in watching those economic numbers out today. take a look at this chart on the bloomberg showing you prices paid by manufacturers. starting to ease a little bit, but today's numbers work a strong. we talked abou

i wanted to comment on jamie dimon and elon musk.his business faces competition tesla dominated the electric car market now all of his come pepetitors e enter deucing electric or hybrid vehicles he has competition haes not had before that's going to impact his sale and his bottom line. elon has a habit and a pats earn of over statements the and hyperbole. jamie dimon is a rped economic voice. i'm not prepared to embrace the profit of doom se fcenario. the average american should save money and take advantage of the fact that unploim is low there's been more cash to not just spend it all to the extent possible to save it, to provide themselves with a nest egg in the event that the a shock the economy or reface some sort of economic downturn. the message is for the american family, american consumers yes, money is tight. yes, things are tight to take advantage and to prepare for the future >> it's kelly here do you think the fed should be doing more you must hear a lot about how frustrated and scared people are about energy prices and

that's what jamie dimon says that's ahead and investors should brace themselves. two big concerns is the fed and the ukraine war. plus short energy, it is a bold, bold call on this year's best performing sector so far we've got the technician behind the report with us this hour lots to discuss, busy hour ahead upon kelly >> and he is no slouch we're looking forward to that, tyler. thank you very much. hi, everybody. growth concerns are weighing on the major averages and so are rising rates a few strong economic reports saying activity hasn't slowed down enough to tamp inflation. the dow was down 405 at the lows this afternoon and we're down 181 or half a percent, two-thirds percent declines for the nasdaq the nasdaq, by the way, 4105 the yield assesses the path of interest rates 294 you can see this decisive jump here throughout the morning and it's held up at these levels and this is a big change from last week and will continue to be a big test for the markets that warning that tyler mentioned of a coming economic hurricane that's from jamie dimon underscoring c

wall street on recession watch after dire comments from jamie dimon that an economic hurricane is coming. not just wall street, elon musk is buried too. game stop gaming the market, disappointing earnings not enough to take down the stock but beware of a new warning from the sec. ben levisohn, carleton english and jack hough. a lot of interesting conflicting signals out of the economy. a strong jobs report, strong manufacturing week, services, all this complicated by the fact that the fed is trying to calm things down. good news isn't necessarily good news, break it down for us. ben: hard to know what to make of this. the market finished down one% on all 3 indexes and because of the things you mentioned we had strong jobs, wage growth wasn't as strong as expected. that's the good news but strong manufacturing set by weaker services. all these forces coming together and makes it hard to know how much the fed has to tighten monetary policy. it could be they do their 50 basis point rate hikes and able to stop but we don't know. we are getting mixed signals from corporate america where compa

tom: jamie dimon lightened it up and some of that was in our interview in london. jp morgan does a lot of fancy work, a lot of math and a lot of algebra and they are looking for higher oil prices. jonathan: their chief equity strategists is still very polish -- bullish. that's a heavy lift on the back half of 2022. tom: it's wonderful to see that division at any major bank in its always part of the debate and its healthy. it's been said the recession going was wrong. they are adamant off of that economic data, the ism data. it's not that bad stuff jonathan: job openings came in pretty high let's talk about crude oil, down more than 6%. we might get more output from riyadh and the president might make a trip to saudi arabia shortly. lisa: he will be going on a nato tour later this month and it might include a stop in saudi arabia to increase production. they are talking about how saudi arabia may consider increasing production in response to a decline in out from russia. how much does this matter? i think this is one of the key issues. how do you translate that into

calming down the economy, adp rises less as jp diamond test jamie dimon -- as jamie dimon warns of a hurricane. the white house taming rising prices. we talk to u.s. commerce secretary gina raimondo at the 11:00 hour. guy johnson is off today. welcome to "bloomberg markets." if we come down the markets, call down the economy, what is next? >> big questions that investors are dealing with. in terms of the direction of the u.s. economy, we have got some mixed signals. yesterday, we were dealing with strong data. maybe the fed is going to be able to hike more. today's data has looked mixed. the data hitting the bloomberg looking mixed. alix: factory orders up just 0.3%. durable goods, transportation came in up 0.4%. let's get a deeper dive into these numbers. michael mckee joins us now. the factory orders seems like a big miss. michael: it is a bit of a mess. we knew that because we got those numbers earlier in the week. nondurable goods increased by 0.2%. there is a real disappointment. shipments come in a little bit better. inventories continued to rise. inventories are up for 20 of t

still jamie dimon the see of the largest bank, j.p. morgan, is out with a warning about the economy. >> it is a hurricane. right now it's kind of sunny, everyone thanks the fed can handle this. that hurricane is right out there down the road coming our way. we just don't know if it is a minor one or a super storm sandy. so you've got to brace yourself. >> he also said the bank will be much more conservative in the face of this than there is elon musk saying he has a super bad feeling about the economy as well as he looks to lay off 10% of staff at tesla prejudgment right out of foxbusiness exclusive reagan economist art laffer. art good to see you thank you so much for being here. a lot of really were reading comments from the ceos then he got the jobs numbers on friday where wages were up five-point to percent but still not enough to offset the sting of inflation which is running 8.3%, your reaction very. >> i think jamie died on elon musk are completely correct for that job support was not a great jobs report if you look at it from a

>> to this point, jamie dimon is likely just saying what a lot of other business leaders have alwaysly or other wise behind closed doors that things could get rough if some of the current business and economic head winds continue. now, dimon is an interesting person here to make these comments. he's in an interesting position. arguably with a finger on the pulse of the economy, not just here in america but globally as well. given the fact that he does run one of the america's biggest banks. inflation is a problem. and the federal reserve is working to try to slow the economy down by selling bonds into the market and then taking cash out of the system as a result of that. so it is a real worry for those on wall street that fed chairman jay powell and other policymakers in that efforts to battle inflation will maybe step on the brakes too much, perhaps make a hypothetical policy error and maybe send the economy into a recession. meanwhile, at that same conference, by the way, dimon said that as a result of what he views as that hurricane that is coming, that jp morgan chase would be mo

morgan's jamie dimon warning of a hurricane for the u.s. economy. restaurant hardware's ceo predicting that they'll have a long way to go to fight inflation. we also just heard from biden and his reaction to elon musk and the super bad feeling. it's not just tesla. you have cryptocurrency companies that are freezing hiring and rescinding job offers that have been signed. and gemini cutting 10% of their work force. >> neil: susan, if you can stay there. we're joined by gary kaltbaum. gary, one of the things that stood out in susan's report, this is a number of key players now saying beyond the president, we've got problems. we have worries. jamie dimon, elon musk, fellow democrats saying mr. president, you have to do something. not satisfied with the pace, with the response. so there's something cascading here. one of the things that struck me about jamie dimon's comments, he was blaming the fed, blaming a lot of the inattention in washington or not response in washington added to the uncertainties around the ukraine war now in the 100th day. lots of

jamie dimon is now warning investors to prepare for an economic hurricane ahead. that's head out to giulio renzi, which side are you on, the marks or the dimon side? giulio: the situation is challenging for any types of investors, investors that are looking at the medium to long-term to allocate resources, but also those that want to be more tactical. there's a lot of volatility in the market that is creating challenges. what we see our opportunities as was mentioned earlier, especially on the equity side there has been a large correction in some stocks, especially in some countries. those corrections lead to valuations that now are way more attractive, and that would benefit investors that have a medium to long-term view, especially in some areas. here we are mostly talking about countries that have their valuations being more favorable, like emerging-market and european equities. >> i want to just take a quick look at what is happening with u.s. treasuries, we are back above 2.90 four u.s. tens. the markets like team spending some time on seeing where that trade

all right jamie dimon playing weathercaster aside. what signs of a coming recession or stormy economic weather do you see right now? >> well, as i talk to businesses, they are talking about the risk of recession, but then i always ask the follow-up question, which is are you changing what you do? and right now what i'm still hearing is people investing, consumer spending, you can't find a recession in the data, and you can't find it in the actions of executives, so i grew up in florida. i learned you always prepare for hurricanes, but a lot of them pass and don't hit you. liz: you know what that's a good analogy. i like that but as the bankers warn of what they see as a real problem and they have clients too and a lot of customers and business, it's with the official start of what you at the fed are doing and that of course is drawing down the fed balance sheet, the reducing of the $9 trillion. starting today, every month until labor day, the fed is going to shrink what the balance sheet by $47.5 billion, that jumps up to about 95 bil

maria: well, it's not just tesla, and it's not just jamie dimon.offs since 2020 and, of course, yesterday we spoke with the ceo of parler who said that we're going to see the layoffs continue. we also got the worst akp report in two years -- adp report in two years. estimates have come down, mike. for example, the broad estimate is 325 the ,000 jobs added to the economy, but this morning nancy lazar over at pipe sandler says she's expecting the number to be 200,000. do you think this is a big market mover? how do markets react, do you think, if we get a 200,000 number? >> i think the markets would react favorably to that because, you know, although we're still seeing wages moving higher, we do need the -- the fed is trying to get the economy to cool could be can. so if that's working, whether you want to give the fed credit for that or not, i think that would be a good thing. maria, you talk about the tech slowdown in hiring, look at what happened with microsoft yesterday. i think it's very important for viewers to key in on things like this. micro

jp morgan's jamie dimon once a investors to prepare for an economic hurricane ahead.e says that it is right down the road, brace yourself. manus: it is a more dire warning compared to his previous comments. a couple weeks ago, there were storm clouds hanging over. on the other hand, he remains positive on the economy and markets. we have to patch it -- take down the hatchet. where you think diamond, the king of wall street is on a dramatic tip? >> the article, we expect it will be transitory inflation -- were basically now we are seeing that battle with hiking rates and a slowing of the global economy. in that sense, what we are seeing is banishment from growth. if that is the target, 3.5%, i think it can be more given or inflation is. -- given where inflation is. dani: does it then make sense that storm clouds are on the horizon? does that factor in right now? saed: i do not think so. i think you have to look at two things. we are looking carefully at the impact, the lockdown in china, european sanctions on russia as well as the oil embargo from russia. val has an im

jamie dimon says they have another 6 or 9 months of pocket spending because of all the covid aid.rs. and inflation of course is the result of the economy roaring back after the covid crash. supply lines are still tangled. energy prices are surging. putin's invasion of ukraine one of the factors die modimon is s concerned about. he says wars go south and oil prices could go as high as $150 or $175 a barrel. and he said brace yourself for destructions in the grain and wheat markets too. the war means suffering around the world. and then there is the federal reserve already trying to cool the inflation. and he is worried about unwinding the huge bond portfolio. during the covid crisis, the fed bought up securities to cushion the financial system. called quantitative easing. qe in wall street speak. now it is selling them. tightening, qt in wall street speak. something that we've never done before. dimon said that people will be writing about this in the history books for 50 years. in may he warned about big storm clouds. now he is downgrading his forecast and warning about a hurrican

bad feeling about the global economy and jamie dimon talking about hurricane and clouds.feel that way when it comes to central banks? >> i don't share the sentiment that we are in as hard a time as we are at some of the figures talk about. the australian economy is different, it is very resilient. you are not as exposed as some of the offshore markets have been. resources have been very strong. the reality is central banks are behind the ball, they should have raise rates earlier and if it wasn't for covid, they would have, so we've got some catch up football to play and i hope i overshoot it right because inflation across the market, i think the consumer is going to be in a difficult spot if they raise rates to high. haidi: they were talking about a substantially more blunt instrument they use in australia. does that mean the risks are still high? i feel like the market is starting to look for these recession rates. what does that mean for your business? richard: i think there is a risk they do overshoot because i'm not sure interest rates can solve the inflation problem

i guess i'll just say this if jamie dimon were to change his tune just a few weeks after from a couple months earlier it's not a good look here especially and we know how early we are in sort of the economic data starting to slow here that's my personal view. so i think he'll likely take a -- listen, their earnings are m coing quick. they're july 14th. we're almost to the end of the quarter here so again, i think it really comes comes down to expectations if the stock were to go much lower, it rallies out of it. but if it rallies at quarter end, that's a tough set up >> let's get more with the head of u.s. bank equity strategy gerard, any surprises? any questions that still remain in your head >> no, actually, the results came in nicely the industry, as you opened up in your segment, is very re resilient. one of the major risks that we hear from investors today is that they're worried about create losses going higher and what this test shows us that unlike in '08 and '09 when 18 out of the 20 largest banks cut or eliminated their dividends, that's noint going to happen ths time these b

this is what jamie dimon is pulling at.e has to put a more defensive position on his balance sheet. some unemployment comes along with that, too. then you are drawing more credit out of the system, he has to be defensive, i think that is where he comes from. dani: does the call get more intense for tech? elon musk and his super bad feeling. other tech firms talking about pausing hiring as well. is the problem acute in terms of becoming more defensive or technology companies -- for technology companies? ben: they experienced pandemic demand, coming off of these massive growth rates of earnings-per-share of 100%, now back down to the low teens. companies have overspent in terms of meeting this major demand that is cooling-off now. so, i think this is where the technology sector is in a temporary winter. it will come back though. there is enough demand for technology long-term, but they are overspent and overextended, that is why you are seeing these layouts. -- layoffs. manus: how tight is the oil market, the saudis raise the

so that would maybe prove jamie dimon wrong, which i'd like to do, and i'm sure dimon would like to be is the hope here's the thing wouldn't they probably say that that's the goal, whether they believed it was the likely outcome or not because you're going to be hiking rates no matter what. >> for sure. the fed is always in this weird position of how much it can say about what it really thinks is going to happen because, on, they dance between this thing, we're going to have a recession, we're not going have a recession. they don't want to say we're going to have one even if they believe that firmly, but it does make some sense, mike. we are sitting here every month, those jolt numbers come out, 11.4 million jobs openings normal rate, 5 million to 6 million. and the idea that that is so high and won't come down there is interesting data here the thing i'm concerned about here is businesses could do job hoardings, which means they would hold onto workers longer than they normally would, and that could create a problem down the road >> including for productivity, steve, thank you very mu

earlier this week, jamie dimon warning investors to prepare for an economic hurricane. and the jobs report is backward looking, but there are pretty important data points that people will be digging through this report for, steve >> exactly, becky. these days, every economic report is an inflation report. and that's true for the jobs number at 8:30 sure, investors care about how many americans are employed. but in such a tight labor market, the primary focus is going to be about how tight the labor market is, how much wages are contributing to inflation. wall street looking for 228,000 jobs to be created, a step down from last month's 428. you can't know if the number's falling because there aren't enough workers or the economy is showing. the average hourly wages seen rising 0.4%. that would keep the year-over-year gains at a robust 5% an easing of wage gain would give fed officials a bit of comfort that the u.s. is not in the midst of a wage-price spiral it also would like to see an increase in the participation rate after a few months of modest improvement, the popul

when you hear jamie dimon say the hurricane is coming what do you think he means? >> well, i think he's saying that there is a lot of uncertainty in the economy but what the fed is doing is working, it's raising interest rates and that is meant to slow down the economy, to cool down inflation. when interest rates rise things get affected, you know, it's harder to get a loan, it's -- you know, money is not as easy as it used to be. so it will slow the economy. that's what's coming. >> it sounds ominous, when he says hurricane is sounds ominous. >> it's not just the interest rates which are the challenge we also have the war in ukraine which he talked b war doesn't just impact energy prices, john, it also impacts materials that we use to build things like cars and electronics. that impacts the supply chain and also inflation. the other ingredient in this hurricane which i am hearing from economists is the fact that china as well is having a very tough time. it went under lockdown because of covid. now it's trying to rebound. right now unemployment is very high, young

this is one of the things jamie dimon's warning about.into uncharted territory here, and for the president and the democrats to scratch their heads and wonder what is going on, how could this possibly happen, it is a direct result of their catastrophic economic policies that's delivering pain to every american. >> sean: and you know, steve, i look at this and we are reminded at the pump, we are reminded in every store we go to come everything we buy costs that much more, you have two young children at home. we have been friends a long time. now we have a baby formula shortage. we ran out of covid tests over christmas going into the third year of a pandemic. i still don't think joe really knows what monoclonal antibodies are, because there is no operation warp speed for that, or operation warp speed for baby formula, which i'm sure would probably help your family out. >> it would help mine and every family in this country that has young children out. what's astonishing is the white house cannot even present a timeline of what biden knew an

i would caution that jamie dimon isn't always correct. treasury yields in 2018? did we ever see anything close to 4% back then? stuart: okay. >> the answer is no. stuart: you can be wrong. he was wrong then. i hope he's wrong now. we'll see. >> yes. stuart: okta, software company used by people -- >> like you. stuart: yes indeed even though i don't know much about it but that's a big healthy gain, 16%. >> so i think cybersecurity is definitely the growth trend and i'll tell you more about the arguments in the markets for that so outperformance, well that's an understatement there for the id security company, big beat to start the year, better sales, higher profit, no impact they say from that hack in march and no impact from ukraine, china, or even inflation. didn't have an impact on their bottom line so not only raising guidance for the springtime, but also the full year. stuart: crowdstrike. >> another cybersecurity company, fantastic business during covid and a great start to this year, making more sales, more profit. in fact profit tr

i will say this, and i'm sure you talked about it earl earlier in the week, jamie dimon didn't pull the word hurricane out of his hat, it is obviously a word he chose to see. loretta mester can say what she wants about not seeing the hurricane. she may be in the eye of one and not able to see it i think brian moynihan at the bank of america is a different circumstance i'm inclined to believe jamie dimon. in terms of the numbers they're good numbers, but to jim's point i think good numbers are not good for the market. >> it could be cat one or super storm sandy, so you cover the basis when it comes to the severity of the hurricane about to hit the economy, pete maybe it is fair we don't need to necessarily know if there's a recession on tap, but if businesses believe things are going to be tough and the consumer is going to start girding and battening down their hatches. >> whoa, nice work >> i mean we're using hurricane, so you might as well continue with this tonight. then that, in fact, causes a slowdown which the markets may not have priced in yet >> well, i think, mel, more importan

when jamie dimon speaks, the world listens and wall street listens. he describes it as a hurricane. there are a lot of reasons. one of the biggest reasons is, as you know, the federal reserve is raising interest rates because inflation is out of control right now. they are also -- the treasury department is also right now no longer buying bonds. you know, during the financial crisis, during the pandemic, there was a lot of what we called quantitative easing, flooding the market with money and therefore stimulating the economy. well, the argument goes that the treasury department put way too much money out there into the economy. it flooded the economy with money and that's a big reason why we have sky high inflation. so now the treasury is trying to withdraw that stimulus, if you will. it's happening at a time when you've got sky high inflation, gas prices as you know right now at $4.71 a gallon nationally, $6.21 in california. if you want to talk about dire predictions, jamie dimon is thinking we may see oil go to $175 a barrel, it's now at $115 a barrel. this is a global market wh

jamie dimon is the boss. he has -- >> we can't disagree with the boss >> at the same time that's the reason, sara, we're not overweight stocks. i wish i could come on and say this is it go buy stocks. it's not that time because of the risk of an aggressive fed into slowing growth and, by the way, the ecb is moving, the bank of england is moving this is a global story that prevents us from getting too bullish on stocks at this point. >> down 87 points. phil, mike, thank you very much. michael, see you in the market zone tomorrow a lot more talk about the fed and its next policy move with an exclusive interview with the fed vice chair lael brainard, her first interview since winning senate confirmation for the role, 10:00 a.m. tomorrow on "squawk on the street." >>> it's been a rough six months for sunnova which has underperformed the rest of the solar industry up next the ceo outlines his strategy for turning that stock around you know real chili never has beans. you know a cappuccino is for the morning and an

know. >> i think that's absolutely fair she didn't say it but to me, listen, you can't discount jamie dimonlike that. he chooses his words extraordinarily carefully. he knows the ramification. elon musk, probably not so much. i'll take jamie at his word. what category doesn't matter i still think there's pain ahead. energy's not going lower anytime soon >> when he had his investor day, that's not the story he told when he was talking about what kind of risk they will take, he was being conservative he was saying we're going to service our existing customers we're not going to take on necessary risk >> let's stick with energy exxon mobil jumping to its highest level since 2014 the stock is up more than 68% this year and options traders are betting it's about to climb higher mike >> a lot of energy names saw a lot of options activity today. exxon was certainly one of the leaders there. traded well over two times its average daily options. outpacing by about two to one. the september calls, a buyer just under three bucks buyers are obviously betting the stock is going to rally above that 115 s

how can we protect ourselves, and could jamie dimon's forecast be wrong? ell, i was president of the ubs investment bank and ubs america, so i know jamie, and i understand his views with respect to the banking industry9 and the future of the economy. i mean, a couple of things. one, i wouldn't say it was rosy today, so i would disagree with him where we are today. we're having, i would say, strong numbers with jobs and wages, and then we're having everyday, tough numbers with inflation both on energy and food. and if you look at everyday, hard working americans, they're losing money in their pocket every day because inflation's about 8.5 and wages are at about 5. so i wouldn't say it's the rosy today. on the horizon i probably am a little more negative with respect to how long inflation will stay with us, because i cothink the geopolitical risk is going to last longer than we all think. and the unfortunate thing with energy is it's a global with market. so it's not just what the u.s. can do, you know? it's what's happening with russia, china and everywhere

maybe it feels like they're not quite the right size for what's coming when it comes to jamie dimon, though, he runs the largest bank in the country and he's most leave naming what the federal reserve is likely to do to try and target inflation which is raise interest rates quite a bit over the next several months, and then also withdraw some other stimulus measures that they've put in place since the pandemic, buying up a lot of treasury bonds that's one measure he also flagged the possibility of oil going to $150 or $175 a barrel, assuming in the war in ukraine continues to wage. those things he felt raised the risk level for some bad economic outcome, maybe a recession eventually, though i would point out jamie dimon's kind of paid to worry about these things. he's saying currently his customers, consumers, and companies, they're still spending, they're still in decent shape, they're not falling too far behind on their debts or anything like that. it's much more about what might come down the road as opposed to the way the economy looks right now. >> live from the stock exchange,

coming up, jp morgan, jamie dimon talks.eds of staff and what has been a red-hot housing market are to be let go. more on the story here on bloomberg. ♪ manus: 3:00, the summit of the european leaders, russia's invasion of ukraine and the pivotal moment in history to be made about the membership application for ukraine and moldova and georgia. 9:00 -- 9:30's of the fed relieves -- reviews the results from their annual stress test. later, we have jay powell testifying before the house financial services panel. it is going to be how much further and deeper they push on the scale of slowdown. if you look at elizabeth warren's comments, talking about be careful what you do before you drive this economy off a cliff. some pretty aggressive language from congress toward the fed. dani: you have to wonder how much larry summers talking about 5% unemployment for five years, how much d.c. is looking at that and sing, we want to get inflation in check, but in the midterm cycle, the political implications are large. manus: the other narr

. >> so you don't necessarily -- you're not saying jamie dimon is wrong.going to get hit with a hurricane. it could be a severe rainstorm or a -- worse than that. i think there's no question about that. we can't really predict the future right now. i think it's uncertain how it's going to be in the future. >> okay. i want to talk about some possible solutions. i thought it was interesting that democratic congressman ro khanna wrote in "the new york times" in an op-ed, this is way more biden can do to lower prices and this is what he wrote. mr. biden should convene an emergency task force empowered to lower prices and address shortages. we need an all-out mobilization, not just a few ad hoc initiatives reacting to headlines. that's not criticism from, you know, a republican. this is from a fellow democrat who says the administration could do more than it's doing. what do you think? >> well, i wouldn't say the president is responding to headlines, first and foremost. i think that president has been talking about inflationary pressures from the end of last ye

it echoes the message earlier this week from the jpmorgan jace ceo jamie dimon about a looming economic hurricane reporters today asked president biden about musk's comments. he brushed off concerns. >> well, let me tell you while elon musk is talking about that, ford is increasing their investment overwhelmingly. so you know, lots of luck on his trip to the moon >> the president applauding the solid jobs report out today. data from the labor department shows the u.s. added 390,000 jobs last month. that means we have now recovered almost all of the jobs lost during the pandemic. the unemployment rate steady at 3.6% and average hourly wages were more than 5% higher than the year before. >> that's a sign of a healthy economy. with steady growth, rising wages for working families everyday costs easing up, and shrinking the deficit. that stability puts us in a strong position to tackle what is clearly a problem, inflation. >> the markets wincing the dow fell more than 300 points today, closed down more than 1%. cnbc's senior markets commentator mike santoli live from the new york stock exch

jamie dimon says he's preparing for an economic hurricane. how does chuck robbins feel?ck: i remain optimistic, but i'm thinking specifically about the importance of technology to our customers. emily: looks like we lost chuck robbins joining us from cisco live. we will work to get his shot back up. right now, we will had to break. clean base slashing 18% of its workforce. our darker days ahead? are there any bright spots left for crypto. we will discuss. this is bloomberg. ♪ >> a number of people are trying to figure if they should get out. i don't think we have natural buyers. i think we have natural sellers and nobody knows what the bottom is for that. he also have a bit of pain in the crypto space. ♪ ♪ >> we are seeing sentiment at an all-time low. i don't think i've ever seen people feel this negative about the industry. that said, there are plenty of crypto firms hiring. we were seeing layoffs for sure but this core ideology that powers this movement is intact. emily: that was nick carter earlier on bloomberg. the dual shaking that p5 in ways that may have serious

which brings me all the way back to jamie dimon's weather report. what he's saying talking about a hurricane is the inability of the fed to crush inflation without crushing the economy imagine a hurricane hurting the coastal area what house do you want to be in? one that's just an idea that you got trapped in oh, look i'm not against growth. i talked about platforms known as facebook have great balance sheets and big moats many are worried about the future of meta cheryl sandberg resigned i was concerned about the vacuum she might cause and is the ceo's long time co-leader going to take the whole business with her? she was the growth and prosperity no that is not going to be the case she reassured me about the big bench and the right time to focus on philanthropy. their stock should be bought on this weakness. i will miss the -- steer the companies to small businesses. buy the stock on the weakness. i'll say it again tomorrow in the end the new class of disappointing new investors needs to start over. as i tell investment club members all the way do

jamie dimon says he's preparing for an economic hurricane. how does chuck robbins feel?ck: i remain optimistic, but i'm thinking specifically about the importance of technology to our customers. emily: looks like we lost chuck robbins joining us from cisco live. we will work to get his shot back up. right now, we will had to break. clean base slashing 18% of its workforce. our darker days ahead? are there any bright spots left for crypto. we will discuss. this is bloomberg. ♪ >> a number of people are trying to figure if they should get out. i don't think we have natural buyers. i think we have natural sellers and nobody knows what the bottom is for that. he also have a bit of pain in the crypto space. ♪ how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and p

. >> asian stocks drop as a central bankers amplify hawkish remarks and jamie dimon issues an economic storm warning. >> it is a hurricane, that hurricane is right out there down the road coming our way. >> saudi arabia is ready to pump more if russian production is hit by sanctions as the countdown to the opec-plus meeting there today, china leans on infrastructure to stingley its economy thing on banks to -- offer credit. >> the reverse repose, and maximum maturities, we have the infrastructures we will get to a minute or two, that is something that will be so that we talk about, oil prices as well on the way down. the inflationary pressures there. we have the banks in china being told have to lend, they are going to. >> or will they, can they? who will pay? the new credit data for may, one of the key indicators to watch the next few weeks, they'll be the first sign to see if there is a lot take-up of the debt there. we are talking infrastructure and of course that credit line. across these markets, it is a risk as far as equity markets, the dollar stronger today, as he was pointing