cme has approached cboe for take over to the tune of $16 billion.share takeover according to the financial times. they are reporting this would value cboe at around $150 a share. you can see it drop here in cme shares. they are down about 2%. but it would be an all share offer. it is interesting because these are two of the most traditional chicago exchange businesses. salt of the earth exchanges. i'm sure the traders are sitting on the floors right now with bloomberg screens all over the place. watching these flash by. you could see the bait and the exchange business, we will get our wall street reporter out in just a moment. sonali is going to talk to us about what this means. so stay with us for more on that. we are also going to give you more housing data out of the u.s.. we've got some numbers today, adding to evidence that the red-hot market may slowdown. the demand for mortgages and the ceo of the largest wholesale lender in the u.s.. this is bloomberg. ♪ matt: this is bloomberg markets. we have some breaking news coming out right now. accord

the ft reports the cme has approached the cvoe about an all share deal worth about $16 billion. the move in cboe trigger with the shares up 7.5%, with this potential deal offer with consolidation in another area where toll collection if you want to call it that will be critically important >>> still ahead with the taliban declaring victory in afghanistan, the social media companies face the conundrum how to handle extreme or graphic content from the ldeears of the nation should they even be on their platforms? that will be next right after this rush hour will never feel the same. experience thrilling performance from our entire line of vehicles at the lexus golden opportunity sales event. lease the 2021 is 300 for $379 a month for 36 months. experience amazing at your lexus dealer. this may look like a regular movie night. but if you're a kid with diabetes, it's more. it's the simple act of enjoying time with friends, knowing you understand your glucose levels. ♪♪ >>> welcome back the taliban takeover of afghanistan could have huge implications for the tech world because of soci

not had any discussions with cboe whatsoever both of those stocks reversing their earlier moves as cme pops and cboe gives up a 9% gain. >> wow up next, we'll look at robinhood results after the bell the stock up from its debut, but wall street is divided on the trading platform check out yields across the treasuries a bit of an up and down picture, just like we saw with stocks, but it ten-year u.s. treasury hanging on to about 1.27%. we're back in a moment ♪ ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocea. do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry di

we have to have a recognition in culture to celebrate the risktakers so there is the cme awards.o it should be broadcast like the oscars and second for the leadership the leaders of each organization and then to become the secretary of commerce and it's silicon valley thing. and then to tell the other direction. and went is a structural change. and those that come in with the administration. typically with a couple of interesting exceptions at best they mayyp take priority but the average tenure is 18 months through two years. you will not create anything in the culture in 18 months or two years. the head of the gao they appoint a person and then to be surveyed at the top of the federal government and i am satisfied or my work is meaningful. and the homeowner versus the home renter. and so you get rid of the presidential appointees. and then you institutionalize the leadership in the operations. and then you look to the practices of theu private sector and then to be as excited about their jobs as the people at microsoft or google or wherever. is not radical and crazy. >> especia

. >>> pippa, thank you rick santelli tracking the action out of the cme.k >> reporter: if you look at an intraday of 10s, you really see the truth here last week we held 1.22% area and we had some lift we are moving sideways here. but as you look at other sectors particularly barclays high yield chart going year to date, the spreads have widened as of late. when you look at interest rates and the spreads, then take into account the dollar index this is a one-week chart four sessions. the dollar index ran up. of course what's going on with jackson hole going virtual took some of the steam out of the dollar index all the trades seem to be moving in tandem with the notion the taper is coming. it's more a question of when and on the reports you are discussing, lots of talk today about whether you look at the port of los angeles and long beach together they have 40 ships waiting to unload. that is a post-covid tie for the all-time high which was set back in february. so really a lot of moving parts here but the taper is still the number one issue in the fixed i

rick santelli at cme rick >> reporter: yes, tyler, it has been a wild session.look at five year, and i think five year because we had $61 million and hit the marketplace at 1:00 eastern. as you notice on the chart at 1:00 eastern rates went up there's a nervousness as to whether there will be new information on the taper in lieu of the questionable notion of how the delta variant is going to affect jay powell and company and that has shown up in a much less aggressive auction. the two-year note auction was very strong. if you look at 5s, 10s and 30s you can see how they have turned up all at two-week highs two-year note should they close, that would be a 1 1/2-month high if we look at ten-year notes right in the middle july 2016, 1.36 to the left you see that little bottom on the left 1.39% those are the areas we're bucking up against and they are solid resistance levels. finally the kbw index against the 10 year notes week to date a rise in interest rates makes banks quite happy. kelly, back to you >> love that chart of the ten year rick santelli. the nasdaq is

key levels and rick santelli, hope you have a good weekend too, rick he is tracking the action at the cmel tell you what, and i'll be looking at all the charts this weekend because for all you technicians out there, the treasury market has been acting beautifully right along with the charts. today we had a first glimpse of how delta variant is affecting confidence and it was in a large way. 70.2, a ten year low on university of michigan, it is an august preliminary, it still may change look at how it immediately effected treasury rates. immediately dropped under yesterday's low yield and wednesday's big auction day at 1.33, all of that of course now in the rearview mirror as we just dipped under 130, so now town on the week in tens, 195 was the close. just dipped below that level as well and look at the third week in july, you can see that the market is urging here. it never got above those 2012/2016 yield lows we've talked about 1.36 to 1.39 and final and ly, baltic with a year how >> wow rick, thank you very much. and speaking of which, supply change snarls seem to be affects industries

hotter than expected housing prices european cpi rick santelli is tracking the action for us at the cmet, rick >> yes, tyler. you know, normally the u.s. leads. if you look at a chart starting on august 1st of 10-years, you can see we definitely failed to get above 1.40% and for the most part we've been hovering although we turned up a bit. the interesting part is that bund yields have gone guns high. they closed at minus 38 basis points, 0.38%, that's a six-week high, high yield close and the distance between our 10s and the european 10s, which tyler was just referencing, is basically the tightest it's been in about a month we have sort of pad the baton on leading the charge to firm up and normalize. it doesn't seem to be the case now. the ecb has a meeting next thursday and there's talk. they have two programs to purchase the pep program and the app program. there's talk to maybe reduce those. and finally if you look at a month-to-date of the euro versus the dollar, the euro is virtually at a one-month high. the dollar has been stagnating a bit. even though it's not at its worst level

now let's get over to the bond market and rick santelli who is tracking the action at the cme >> good afternoon. year to date, ten-year gives us all the information you need we're looking at a fresh six-month low yield close. the same could be said for bund yields, and a july 1st start for 30-year you'll find a fly in the ointment going back to a comp for 30-year, it closed at 182 mid-july and currently at 185. we want to pay attention to the 30-year maybe the closest because if we do challenge that 182, despite ten years leading the way down, that should give a whole lot more energy to the buying that has been pushing yields down despitefactory ordee goods, proxy for business spending, they were all fairly strong this morning. foreign exchange, look at the dollar versus the yen. the dollar is at a ten-week low. if you look at a may 1st chart of the dollar index, it's barely treading water above 92. lower rates and a strong stock market are not going to bode well for the dollar if it closes under 92 courtney, back to you. >> thank you very much, rick >>> up next, the delta variant dri

job numbers playing out in the bond market let's check in with rick santelli tracking the action at cme >> good afternoon, tyler three-day chart starting on wednesday. we bottomed at 112 and we're up 16 basis points and one-month chart we went from wednesday si six-month low close to two-week high if we close above 128 or gnaw, it certainly looks like it is possible it isn't only rates going up, the dollar index finally is acting in a textbook fashion dollar index is now up a half percent object the week and 0.5 cent on the week and if you look at this chart going back to the fall of last year, you can see how close we are really to breaking out to the upside tyler, back to you >> all right, rick, thank you very much. >>> the dow and s&p 500 again hitting record highs after that strong jobs report surprisingly so. so, what's the best way to invest in today's market our next guest says momentum is on the investor side, at least in the short run let's bring in howard with standard & poor's. howard, good to have you with us i like your ear bud, it's good, i have one, too. let's talk about

>>> treasury yields on the move ahead of the annual summit rick santelli tracking the action at the cme. >> reporter: intraday right around 1:00 eastern rates dropped a bit. that's when we completed the note option, $183 billion in coupon supply. very normal. earlier in the day we saw near four decade highs on the pricing indices in second quarter gdp. if you look at one week of 10s, rates have been steadily rising into jackson hole and exactly how it turns out, i can't tell you. what i can tell you we have snugged up to the best resistance the yield high at 1.37%. it fell back down and basically resting on the 50-day moving average. if you look at a mid-july chart for tens you can see we're in the same zip code as two-week highs. if you look overseas bund yields are actually closing at five-week highs because the correlation between all sovereigns as the fed decides what it wants to do with the stimulus policy will affect all. >> thank you, rick santelli. >>> as the summit kicks off tomorrow, the optics of an early fed taper are potentially toxic. a former fed and imf economist toxic,

go where there is a lot of new supply to keep an eye on rick santelli is tracking the action at the cme. rick. >> it has been an aggressive session. it's been a lot of aggressive sessions since last week, but today in particular we had a 58 billion three-year note option there's a one-month chart of three-year note yields that's yields going up when yields go up, price goes down but investors still showed up in droves to buy that, to catch that falling that should tell you something that many are thinking maybe it's going to slow down a bit, which leads me to think it won't. it we look at a one week of 10s, last week we pit 1.12. 10s minus bunds, we are gaining on european rates. that's a good thing. here's a one-month chart the difference between our 10-year and the european 10-year, approaching a difference of 1.80 basis points. finally the dollar index when the distance between the yields opens up, usually the currency starts to go higher, exactly what's happening right now the dollar index looks to close -- it's about 93. darn close to the highest levels all the way back since last

rieses along with phil flynnynne of the cme and price futures group.o , that everybody, who makes who involves more than 100 million, has to file these 13-f paperwork by the sec, so buffets done it too, but whose right on this one and it's hard to say but it looks like burry is betting there will be some type of tech implosion. >> well, i think that he's betting on a short-term to intermediate term phenomenon with the market and not been performing very well when you look at the internals over the past weeks into almost two months, and the fact is is that a lot of things have been pulled down, including the ark fund but i think long term, you do well, i think innovations are going to come back and people will be putting money back into them and we'll see those stocks go back up. again, we have a long term investment versus a short-term trade. liz: phil, he absolutely hates tesla. so now, he's kind of doubling down on the short bet or at least certainly piling on, on the negativity and the bearish bets on tesla which by the way is down about 3.5% but do

thefutures market is regulated you have the cme the cftc you have the clearing house. in a mutual fund that people understand, well, you can get in and out every day. so we get the advantages we're pleased to bring it to market we think there are a lot of ways that people want to get bitcoin exposure, but this is one way that will appeal to a constituency >> much more on the prospects for a bitcoin etf with dave and simeon on etf edge at 1:00 p.m they'll be joined by dan egan, managing droerkt of behavioral finance and investing at betterment etfedge.cnbc.com if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. ♪ ♪ for smarter trading decisions, experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr fi

strategist and trader chris robinson from the cme. guys one of the rules of invest ing in an inflationary environment is to buy dividend- paying stocks all 30 dow stocks do pay dividends, but ed i want to start with you. we're coming off a tough cycle for dividend paying stocks. is the timing now right for them to be a better hedge against inflation for people's portfolio s? >> it is, you know, dividend stocks are low beta, meaning they tend to go up less when the market rallies and go down less when the market falls so the first year a bull market, the first year of an economic expansion when stocks do so well , they tend to under perform we're exiting that phase probably at a phase where stock prices continue to rise but at a slower pace so that's going to be a more attractive place for dividends so when you throw the inflation risk on top of it, yeah it's a much better environment for dividend stocks than it was say six or 12 months ago. liz: you know, we're showing some dividend-paying tech stocks and we're bringing up tech specif

this is a cme that does not have any witnesses. you are in a room of the man doing this you there's no one there to corroborate it except i've seen is gone now. it's been a lot of talk of videos, whether he had videos of her different things in different people. makes you wonder if anybody else is ever going to be held accountable. >> are used editing tips and leads on this on people out of the blue? >> yes i just got a couple this week because the book is getting some press and i'm hearingrom people call me i know this. i will read them all into there's any truth. usually as y you know i would say 80 -- 90% of them are not good information. via one or 2% that make a difference most of the st. thomas airport the air traffic controller called or a friend was friend of an air traffic controller who told this air traffic control had seen him disembark his plane with a bunch of girls. >> talk about sources read a chapter about a couple really sketchy characters kesler and dougal in. what you make of that? that planted or what you think

rick santelli here live at cme hq with breaking news.ust preliminary read on market, markit, manufacturing pmi, service pmi and composites. it's a little light at 61.2. last month 63.4. still represents the post-covid high now, services much weaker than expected 55.2 that is the lowest level since september of last year just several months ago we reached a high water mark at 70.4 it seems that the variant has taken a bit out of the service side and that leaves the august preliminary composite at 55.4. that is the weakest since december of last year. "squawk on the street" will return after these messages. l cl cookie dough p creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories. in the race to succeed, does somebody always have to fail? let's give everybody a fair shot. because when that happens, we've all made it. ♪ because when that happens, we've all made it. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help

cboe which the cme is already denying.e amazon, more lowe's. looks bad. i own it it's not cooperating with my retirement plan. paypal is rolling over also looks terrible. and then like if you want a bright spot, let me give you a stock in a severe up trend u.s. steel having a big day today. trending higher. looks like it goes up every single day for weeks and weeks unfortunately, that's a sub-8 billion market cap does nobody any good that's where we are, and i don't really have a strong conclusion about what it means but it doesn't look great >> let me ask you about some mega caps. what's a more important thing right now, josh? the fact that amazon hasn't been doing all that well or the fact that apple has been holding up it's been near new highs which would you focus on more if you're trying to figure out where the next major market move is going to be >> over on my second favorite show "the halftime report," joe terranova gave us the best explanation which is that there is a push toward quality which explains the apple,

much in the premarket we've got fractional moves across the board rick santelli standing by at the cme importantly producer price index for the month of july the year over year numbers yesterday were sticky on consumer prices and the data is trickling out. let's start with ppi, shall we headline number up 1%. definitely 0.4 higher than the 0.6 we were looking at it equals the 1% last month. for this series the high water mark was january, up 1.2 and if we strip out the all-important food and energy, we're also up 1%, twice the expectations also equaling last month the difference here, up 1% last month was the highest ever now let's look at some of the other data points on ppi if you look at the month-over-month ex food, energy and trade, that's up 0.9 that's 0.4 hotter than our last look here are the year over year numbers, 7.8, a new all-time high for headline year over year usurping 7.3 last month. these go back to 2010 because they reconfigured ppi. and 6.2% when you strip out food and energy also all-time high and 6.1 when you strip out food, energy and trade that's also, all the y

though weekly jobless claims, revision to q2 gdp coming out right now let's get to rick santelli at the cmeng of course our second look at second quarter gdp and initial continuing claims. initial claims, 353,000. 353,000. of course we all member last week at 348,000, that was a post-covid low so we moved higher it was a lateral move and was expected on continuing claims, 2,862,000. 2,862,000. of course last month we also had the post-covid low we haven't challenged that that was 2,820,000 there probably is revisions that will be coming in but don't see them yet as far as our second look at second quarter gdp it was diminished by 0.1 of 1%. it increased from 6.5 up to 6.6. expectations were for even higher at 6.7. but 6.6 isn't bad. on a personal consumption side, these numbers are robust, to say the least. 11.9 11.9 that bests our last look the first time around from 11.8. but here's the money ball numbers. we could have all kinds of excuses as to why we should be ignoring the gdp price index, but it's at 6.1. these are the loftiest levels since the early '80s if you look at core personal

rick santelli is standing by at the cme in chicago rick clock is about to strike. >> andrew, we've alreadyerday's low yields in tens right off the bat, that sets the table. now this number is expected to be weak because michigan was week many expect that the delta variant will impact the u.s. psyche of retail shoppers and we're expect ing a number down about three-tenths it's taking a while, which may mean it's better than expected that's rust me thinking out loud the dollar index counterintuitive with its recent strength considering what rates have done. still don't see the data of course, we want to pay particularly close attention to x autos. autos have had a very special set of issues that have impacted supply chains, chip issues so, many are expecting that autos already deteriorated so x autos is what the most important number probably is most are citing big data as showing a big slowdown that's a split decision as well. some of the mastercard trackers show that in line with about 10, 11%, if you look at online and in-store sales of course, that excludes gas i don't see this number po