seema: that will be a struggle.eed for consolidation across the financial industry is very clear. , allve so many competing losing market share. the price is not just any market cycle. this is something that will keep coming through and sizes everything in this situation. that will be the case going forward. alix: what would have to happen for you to want to buy european bank stocks? what is the perfect scenario? seema: you need to have a much stronger european economic outlook, which i think it is better than it was nine months, but are you still seeing follow-through from the covid pandemic. you also need to see a steeper yield curve. the way it looks going forward, that is not coming. until we see that, i think the european banking sector does continue to struggle. guy: a flatter curve today. a very much flatter curve, certainly in the german bund markets. it does not look like that is happening. we will have to leave it there. always appreciate your commentary. seema shah of principal global investors. let's che

and very importantly cms administrator seema verma. thank you, seema. a great friend of mine and a great friend of health care, frankly, senator bill cassidy. bill. representatives michael burgess and greg murphy, so instrumental. thank you, fellas. many, many state and local officials are here with us. thank you very much. since the plague arrived from china, we've seen our doctors, nurses, first responders, scientists and researchers at their very best. we slashed red tape to accelerate the development of life-saving treatments reducing the fatality rate by 85% since april. incredible. overall europe has seen an almost 50% greater excess mortality rate than that of the united states. despite europe's punishing lockdowns, they are now seeing a huge surge, very sadly, in cases. under operation warp speed my administration is developing a vaccine in record time. it will be distributed before the end of the year and maybe quite a bit sooner than that. four vaccines in the stage of clinical trials. a lot of things are looking very good. it is the most ambi

seema mody with the numbers. seema? >> good afternoon. those spending talks remain front and center, especially encouraging comments from secretary treasury steven mnuchin. we're looking at the dow industrials currently up about 493. at the high today we were up at 514. the nasdaq higher by close, s&p about a 9% game from the sector perspective. big winner, consumer discretionary, up 16%. the biggest loser, energy continuing to be the dog not just for the quarter but for the year, down 20% kelly, back to you >> yeah, it's been such a rough go there lately. seema mody, thank you so much. >>> the federal reserve seeks no real interest rate hikes until at least 2023. seems like a goon the day when the market is up 461 points, it looks like, on my screen right now how much concern do you have that the feds promises to remain a accommodating for many, many years in the stock market and the bottom market. >> i'm worried if we keep rates at zero for longer than we have to that it forces people out on the risk curve and they've got to take more r

thanks for playing and thanks for voting as well >> to other top headlines, seema with more.u dare opine on how you would have voted on said poll? >> no. i'm not out there. i'll leave the experts some what related, you could say. we have jp morgan jamie dimon saying he's okay with higher tax on the rich but cautions that wealth tax is likely impossible because calculating wealth is impossible he spoke to us at the jp morgan india summit >> i think governments should spend more time saying how are we going to have a healthy and growing economy and not confuse that with politics taxes that will slow down growth like capital formation, labor, which will not affect growth, taxes on well to do people like me that should be thought about more than just taxation. >>> china's ant group submitting documents and backed by alibaba and planned to list in shanghai and hong kong as soon as next month. said to be the biggest ipo since saudi aramco last year walmart getting ready for the holidays looking to hire more than 20,000 seasonal workers and increasing inventory in categories like el

seema: i don't think anyone could have foreseen the movement that we've had. at the same time, the trend in big tech is not new. the trend has been magnified. we have some genuine police in the strengthen big tech and the ability it could continue to perform well to produce good results. but i just don't think housing -- the vaccine scenario being sent narrow, until we get that, we just don't have a sufficiently small recovery to keep going without confidence. jonathan: get to catch up as always. seema shah, principal global investors. the market cap of apple, $2.47 trillion u.s. the market cap for the ftse 100 and sterling, 1.63 trillion. just think about that. have a little think about that. that's where we got right now and 2020, that you can have a .igger company tom: on madison avenue, there's a bunch of fancy stores. most of them are empty. some of them have a few people in the, with the emphasis on the word few. there's a line of in front of the door with people waiting to do it in. it is a massive guesstimate, i rising revenue. jonathan: i don't think

seema moody and michael.er has been a brutal month for some of the year's biggest momentum plays the chipmakers invidia off 15% and apple quietly on pace for its worst month in two years tesla worst week since march and nikola is down 80% and 50% this month alone. is this all nikola's fault >> it's not all nikola's fault i think it's the posterchild but, look, they have certainly things specific to them that are leading to the selloff in nikola shares but in terms of momentum, i think you can attribute this to all the things we heard mike talk about several times over the last couple months it was wound so high it was due for a pull back and that's what we're seeing here. >> michael, elaborate on that, if you would which is the tail and which is the dog, so to speak >> all the superlatives that we were throughing out there are going in reverse i'm not saying it has to be an opposite and negative reaction we probably have longer to go. but this is also the way markets go and a high-momentum move. think about i

seema mody has what that would look like for the industry seema, let's start with you. >> a lot of moneynd jobs are riding on this decision. if the restrictions are lifted, they can recoup some of the financial losses they've incurred due to the six-month shutdown however, if health officials extend their ban on cruising until later this year, as some suspect, cruise operators are already burning a lot of cash per month, some as hyatt $650 million for carnival and take aim at the workers who work in the cruise line industry yesterday workers in pothe porti miami went on strike if it is a decision that they go with them, the cruise lines and their loyal customer base want answers, in addition to the testing of passengers and the steps they are looking to keep their ships covid free, what else do they want on board we expect those answers soon the announcement from the cdc expected in the next couple hours, kelly >> wow seema, thank you very much seema mody let's get to rahel solomon on more americans waiting for any extra benefits rahel? >> while the unemployment rate last month did dip t

i'm seema mody. wall street is set to open higher after several days of losses. the nasdaq the best performer led by a surge in shares of amazon. gains were capped by concerns about a rise in covid-19 cases in the uk along with a bleak outlook. in focus fed chair jay powell testifies again on the coronavirus crisis. pr plans to kick off october 13th, telling warehouse workers they won't be able to take vacation between the 13th and 20th according to a notice seen by cnbc. in july prime day, the annual event to entice new subscribers to provide a sales boost in the middle of the year. >>> elon musk outlining costs so it will be possible to sell a $25,000 electric car. however, he still says the vehicle will be a few years away at the company shareholder meeting yesterday saying building an affordable car has always been the dream since the beginning. tesla eventually expects to build as many as 20 million electric vehicles a year. the event was held outdoors at tesla headquarters. marcus and laura, back to you. >> seema, thank you. >>> coming up on "today in the b

services, seema verma, and admiral jabbar, who has done such an incredible job. thank you, admiral. we are also joined by mississippi governor tate reeves. you had a to mentis victory. we are -- you had a tremendous victory. and abbott ceo, robert ford. robert, great job. today, i am pleased to announce our plan to announce millions of abbott rapid tests. in the coming weeks, very soon. this will be more than double the number of tests already performed, and here is our plan. 50 million tests will go to protect the most vulnerable communities, which we have always promised to do, including millions for nursing homes, 15 million for assisted milling facilities, 10 million for home health and hospice care agencies, and nearly one million for historically black colleges and universities, and also tribal nations. 100 million rapid point-of-care tests would be given to state and territories to support efforts to reopen their economies and schools immediately as fast as they can. allowample, it would every state on a very regular basis to test every teacher who needs at. this continues ou

seema, time for our "etf spotlight.s morning >> certainly is fixated on technology, david, the technology selects spyder fund ticker xlk up more than 20% in 2020 boosted by the likes of its top holding apple sitting out of yesterday's sell-off, rising another 3%, that stock is doubled in just the last year, a lot more "squawk on the street" still ahead. stay with us ♪ ♪ ♪ ♪ everything we have, we've earned. the unmistakable lexus is. get zero percent financing on the 2020 is 300. experience amazing at your lexus dealer. >>> chair powell and treasury secretary mnuchin are just moments away so don't go anywhere we're coming back in two minutes. mama! from the first loving touch, everything that touches your baby should be this comforting that's why pampers, the #1 pediatrician recommended brand, helps to keep your baby's skin dry and healthy so every touch is as comforting as the first pampers. the #1 pediatrician recommended brand every curve, every innovation, every feeling. a product of mastery. lease the 2020 es 350 f

but during the health emergency, seema verma and cms permits laboratories to extend their certificate to operate in temporary sites like schools or churches or parking lots. so though we anticipate that the test will generally be performed by a trained individual on a patient, i will demonstrate a self-swab for you to show you just exactly how easy the test is performed. so literally, it almost could not be easier. it starts with six drops of liquid on to this piece of paper. one, two, three, four, five, six. then there's a nasal swab and again, this is not the deep brain biopsy we talk about. this is generally done by a health care provider but can be done supervised. it's this easy. one, two, three, four, five. one, two, three, four, five. into the test, twist it three tim times. the adhesive is pulled off and you wait 15 minutes. that is the test. it really could not be easier than this. this is a very sophisticated little piece of cardboard with lots of antibodies and incredible technology into that. we have already shipped 65,000 of these to disaster operations in california, ore

thank you seema. on deck, your morning rbi.est stock performance this year, take a chance on us. that's a hint. coming up later this morning in a cnbc exclusive, house speaker nancy pelosi will join squawk on the street at 10:00 a.m. eastern time here only on cnbc we are playing abba going into break. good morning >>> maybe the most random but interesting thing you'll hear all day. this is sure to get political. we know covid has been politicized on both sides. we just like to look at the numbers. the single best performing country this year, sweden. basically up 8 this year more than 2% more than second place south korea. sweden is up 18% bouncing back off its dip. is that a reflection on the look at herd immunity it has been a good market for investors. other nations have delivered the old meatball this year random but interesting how do you say that in swedish >>> the on going break has put the health sek tr with new challenges the newest word from credit suisse as it puts out health benefits for next year >> a.j., thanks fo

phil le bo will look at tesla's big drop seema mody looking at the sensitive cruise names with severals today kate rogers looking at the food stocks mike, let's start with you >> more than anything else, the strength of the market and acceleration in recent days. we did have a stamp peet of buyers, and that stam ped seemed to corner itself i don't think there's anything in particular. there were some cracks this week when apple couldn't build on gains. that seemed to spill into -- and the options market which shows open aggression. we were more than 20%, the relative strength index -- you don't need a ph.d. to say, yeah, it's looking overextended. what do we look for as a soft landing versus hard landing. >> if the nasdaq is to have a relatively routine pullback, it would be another 3% or 4% to the down side, and you would look for the market to get support there. we obviously get a jobs report tomorrow it might be something to that end. but the corporate debt market is not unsettled at all, really that's a net positive that suggests maybe it is s. >> plus you only between two out of t

seema yasmin. thanks so much for coming pont nice on. nice to see you. cases ticking up in 21 states and the cdc director is heard saying the president is getting bad information about the virus. how concerning is this? >> this is exactly what we were worried would happen, pamela, when states started to reopen too early, when there weren't widespread mask mandates, when there was a rush to send kids and young people back to school. the experts, myself included, have been saying we're doing this too quickly, we're not letting cases go down to a much lower level before we lift these shelter in place policies. what you worry about then isn't that there will be an immediate uptick in cases, deaths and hospitalizations, because there's nearly always a lag, two weeks to four weeks to six weeks. it can look like things are great once things reopen because you don't see immediate hit. but it doesn't take long until that kicks in. even though some states are reporting some good news, some declines, there are other whole regions of the country, inclulgtd midwest i

a 30% gain in the past three months seema mody, this is your story you're stepping in to tell us more it's a growing trend right now, isn't it >> it really is, bill. it's not just airbnb that's benefiting from people looking to rent versus buy contractors that work in construction and engineering are increasingly renting large-scale equipment because they simply don't have the foresight as to what demand will look like in the long term. think about how many companies slash their guidance in the second quarter so without that certainty as to what demand will be like, it makes more economic sense to rent a lot of this equipment in case you were wondering, bill, a bulldozer can cost anywhere between 40 and $160,000, then you have to pay for insurance, a place to house it, sometimes you have to hire a mechanic to service it so it can be very cost toly to some of this equipment, and that's why you're seeing a lot of people in the industrial world renting instead of buying. it's a result of the financial crisis as well >> i'm going to write that down. i think i'll get two more bids on that

obama basically said the same thing when he was in her seema. world war ii reached its brutal and in hiroshima and nagasaki. 85% of the american people according to gallup poll and 1945 supported dropping the atomic bomb. a roper pull the came out after in 1945, said the 22.7% of the american people was the mare japanese had not surrenders so quickly so they could drop more atomic bombs on them. so that was the attitude. racism artifact even a little bit. the japanese were brutal and vicious. the time death march which happened in 1942 doesn't it known in america until 1940. for what the japanese did was horrific. what the japanese did throughout the pacific was horrific. we're not debating about that. we're debating about whether dropping the bomb was the right thing and what the consequences were. because as the scientists and others say, it did lead to an uncontrollable arms race and were lucky to have survive since then. from that day, it's been hanging over the head of all of humanity. truman was not bloodthirsty, he was not evil. truman we

mody about this move seema?> extended stay america is one of the hotels that have outperformed with an occupancy rate of 81% in august compared to the actual average of 49% the company is trying to disrupt the student housing market that's been hit with defaults and temporary closures they're hoping their hotel rooms that come with with a kitchen will look attractive to students bruce hauser from extended stay. bruce, welcome you've already partnered with several universities will students live here? >> we were an early mover in this area. we saw that there was demand way back in march when dorms closed rather quickly many students didn't have a place to go. we really thought our product was a perfect fit for the needs of these students. it's been well received, as you mentioned. we've had partnerships with 20 universities and we continue to reach out. that's been welcomed and we can imagine the revenue in millions of dollars at this point >> you've been very aggressive you've been building out more hotels acros

seema yasmin, a former cdc detective. i always like to start big picture, if i can, and here we are seven months into this outbreak. the president is now going deeper into spreading conspiracy theories and the true extent of it and we're heading toward flu season and there are widespread concerns about politics infecting the science here on things like when a vaccine is approved. how should americans at home, people watching this take that? how concerned should they be that this country is not letting the science and the facts driver the bus on this? >> we should be really concerned about that, jim. we have examples from so many countries around the world that were hit with the same virus and the same time that have drastically different epidemics and fewer deaths per population because it wasn't a politicized pandemic response. it was one that was science-led. even now when we're hearing about iowa, with skyrocketing cases and 77% of increases in iowa from one week to the next and the coronavirus task force issuing these

and very importantly cms administrator seema verma. thank you, seema.a great friend of health care, frankly, senator bill cassidy. bill. representatives michael burgess and greg murphy, so instrumental. thank you, fellas. many, many state and local officials are here with us. thank you very much. since the plague arrived from china, we've seen our doctors, nurses, first responders, scientists and researchers at their very best. we slashed red tape to accelerate the development of

seema yasmin, you have been outspoken about woodward's ethical responsibility. you say when woodward heard trump say in february it's a killer, much worse than the flu, he should have told the public then and not waited until now. tell us your case. >> absolutely. because bob woodward himself is saying the president of the u.s. has a duty to warn, that is correct, but so do you, bob, so do i, and so does every journalist who signed up for this job. if you have information that can save even one life, let alone close to 200,000 lives, then you have a journalistic duty, an ethical duty to share that information. we should not be learning that now, 7 1/2 months after you first sat down with the president when we've lost so many people. i think the public response to this and the perception to this could have been drastically different, brian, if we had learned this information early. i know bob is saying, i don't know if would have made a difference. of course it would. if you had told us earlier, look, your president is saying one thing to me in private, the oppos

stuff so that's the theme the small simple see my gosh all such a symptom oh not so please don't say seema come on man i'm not here we need these fools we need the school to see the mother has gone. to full sufferer. most. days i need and. it's very difficult for people. all leave falls ravi's for power no movement can take profi to advantage you'll see situations. places are safe if some me state people say you don't pay attention we are here. for the french would definitely. not in this for the fringe of it only of the province's influence in africa is being corroded all the time by the chinese by the americans by south africa and they want to keep many guests french yes and they felt if they had to choose between regina. they would choose roger leader because he's french. to understand the process was the polite you are so if you just go generic those can you look at beggars here is even better goes to stretch from the from the cars the language of the people the business and everything where the present of the law due to it's been explained to me in this is just my understanding of it

he disagrees i want to talk to you about that i have to get your reaction to what seema was discussingthat are going to have to give it up, what are your thoughts what duos through your mind terms of right now and the future of travel and hospitality? >> i actually say it's not a big surprise, because what we've seen is that the two segments that are hit worst have now seen very little recovery is business travel and any kind of intercontinental travel. when you're looking at cities like new york or london, paris, i mean, you have a significant share of intercontinental tourists and a lot of business activity and that capacity is not there currently. on the other hand we've seen in summer more traditional family destinations, like vacation destinations have done much better and that demand has come back first i don't think it would get better very soon business travel will recover, but very slowly, and it's related to the topic we'll talk about later. when you're okay with working more from home, you accept the fact that you don't need personal interaction as often. it has consequence

seema? >> we've soon an onset of new companies. some of the incumbents have come under pressure in recent days. that's led the nasdaq to trade down as much as 10%, currently down about 2% on the day as we said, some of the better performing names within technology currently down around 2% to 4% names like facebook and amazon trading down as much as 17% from their respectively high, but both those names still up about 30% on the year. now, one question that has come up is whether the pull back in technology names will result in a shift to cyclical sectors. worth noting, nine out of the 11 sectors currently trading in negative territory one of the sectors in the green instrumental, general electric now from the positive comments from ceo larry culp. kelly, back to you. >> definitely a different mix than we're used to it's been a tough september for tech apple, am op sand facebook are down more than 15% in that time. why this sea change? and how deep of a reset should we expect? joining mess is james mcdonald, and bryce dody welcome,

it's certainly something that needs to be addressed over time. >> seema, thank you.in galactic up sharply. bank of america with the buy rating and a 35% price target. the company's divergence is unparalleled this gives it a market leading position joining us the analyst behind the note, ron ep stein a research analyst at bank of america, b of a securities must be hard to be an analyst for basically a market that is expected to come about but there are no guarantees. there will be leisure travel to space in your view, next year, ron? >> i think so. the commercial space right now is one of the most exciting areas in the aerospace defense universe we've really hit a turning point. space was the purview of government contractors, defense contractors and the government but with spacex, virgin galactic and other companies leading the charge with virgin galactic, yeah, sure they're going to launch the commercial business, officially open it up for commercial service early next year with their first customer will be sir richard branson. we're expecting that either in q1, q2

seema mody has "trading nation." >>> we are watching the u.s.'s down 10% as soon as march, lowest level since the europo in over two years the question is, what does it mean for stocks? the companies generate the largest revenue outside of u.s though a weaker dallas does make -- so the winners aren't as clear-cut as you may think let's bring in the panel to discuss. j.c., you've been digging through the names that have successfully diversified their business what names or sectors stand out to you >> as you said, the u.s. dollar has really weakened recently we found when we're in a weak dollar regime, or work suggests you want to be overweight materials, even health care, but when you get down to the individual stocks, you want to find those companies who drive a good portion of revenue from overseas off the march low, we can see a basket of s&p 500 stocks with above-average revenue from international markets outperformed that basket returned 61% now, that compared to the s&p, which over that same time period was up 53% now, if we include those s

>> that's right, seema, you hit it on the head, very well bullish, relative strength no view on how itnto earnings tomorrow, but we like how it's acting, on that sell-off, what is -- notable -- they averaged, then quickly reversed higher. there was a lot of interest to buy that stock on the pullback i think for us it comes down to simple tread following as long as the stotts is above the recent low -- our expectation is the trend is higher, and new highs are expected >> there you go. the trend can be your friend thank you both for joining us today. >>> for more trading nation head to our website, and follow us on twitter. >>> energy sector getting hammered this year >>> and pot stocks are also getting crushed. we'll talk to the brand-new ceo for his plans. >>> plus ahead of nfl kickoff tomorrow, gambling stocks you are bucking the recent trends. all of this ahead on "power lunch. stay with us >> announcer: now the latest from tradingnation cnbc.com when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straigh

seema moody has more on this >>> yeah, a second wave driven by tourism related travel.n there are 14 cases per 100,000 people on average in the past country the big concern is the uk. they have seen 103% soar in the last two weeks with 4,000 cases reported on sunday officials there are warning the country could see 50,000 cases per day in mid october if no action was taken they are meeting to discuss new lock down restrictions including a 10:00 p.m. restriction it could hurt boris johnson as they are recovering, there is also money laundering accusations and the uk is down 3.3% and germany now 4.6%. outside of the sectors, the british airways under pressure today as well. >> all right, thank you. keeping our eye on the markets this morning, the do you is approaching a 1,000 point drop 920 at the moment. the s&p down 2.5%. more on today's selloff is next. stay with us >>> welcome back, everybody, here is your news update at this hour three cities have been designated as anarchist jurisdiction the cities are new york, seattle, and portland, oregon. all three could lose fe

kelly, back over the you >> thank you let's get over to seema for trading nation >> kelly, hello. not gotten quite as much love from wall street. it's slack the last price target increase was all the way back in july even as the stock has rallied nearly 100% off its march low. reporting earnings at the bell analysts expecting a 44% sales growth in its recent quarter let's check on the stock ahead oif of its release what's the number one thing you want to hear from management today when the company reports earnings >> i love this company's potential. i do think it's cheap relative to its work from home peers. what i want to hear is i want to see how they are doing when it comes the signing up some of their big enterprise customers they signed up amazon, verizon that makes them less vulnerable to the churn that they might experience from having too many small business clients i would say the number one thing that i want to see or hear is how well they doing with the bigger customers they are average revenue is trending up which is a big positive that's what i'm looking to hear. >> l

seema shah of principal global investors describe the u.k. as a value trap.t is your assessment? ian: i would have to say we would agree. we have been underweight the u.k. continuously since 2016, and i still, although i am more positive on some areas of the global economy and some value trades at the current time, i think it is still too early for the u.k. the u.k. is down 23% year to are, but our valuations still looking expensive. they are something like 18 times trading, but still above their 10 year average, even with the kind of selloff you have seen. i think it is dangerous to get involved in the u.k., and our fundamental problem is that we still have these large deficits right across the economy. that means we are relying on the kindness of strangers, and our target is still for parity against the euro rather than where we are at the current time. so i afraid we would concur with that view. definitely the u.k. remains a value trap. alix: just to pivot off of that, angela merkel speaking now about the economy, saying we want to keep the economy running

let's get over to seema for "trading nation. >> highlighting one of the work from home plays. that's docusign still up big this year and now at a market cap of $345 billion. earnings are out after the bell. not a great sign to see docusign down 8% ahead of its report card after the bell >> i bet they are wishing they released on monday when zoom did. they are one of the champs of the work from home environment everybody has used their process. i'm going through a closing process. i'm first hand testimony to their software companies include comcast, small business administration. it's ridiculous, absolutely insane valuation it's a question of whether the market will feel kind enough to take it up if they come in line, that sets us up for a much bigger decline on the short term. this is a trend that will stay with us past covid it's very boring but very necessary space. they are dominating that space i really like it long term there's no doubt it could be very turbulent over the near term >> lot of growth drivers we saw that in zoom's report earlier this week. when you size up t

seema yasmin, cnn medical analyst. thank you both. important conversation. so glad you're both here. dr. yasmin, let's start with you. in your piece you talk about a colleague, not a doctor but someone who works in er said there is a cure for covid-19. there is not. even though he was shown evidence proving there's no cure, he said, but i saw it on facebook. and he works in -- how deep does this information go? by the way, that's like my every conversation i have with someone i know who is a trump supporter. i'm like, oh, my gosh. go on. >> you feel the pain, don, it's so frustrating. and there's just another level of scariness to it when it's a health care professional, you think come on, you should know better. but hits home this point that everyone at some level is susceptible to health misinformation and disinformation, there's so much nonsense out there, people pushing it are preying on the fact we're vulnerable, anxious, scared, overwhelmed with information, don't know what to believe, president saying one thing, scientists another. then platforms like

first, he's bring in seema >> let's say the cruise experience is about to change in a big way from daily temperature checks, physical distancing on board, testing, fewer stops and excursions as more changes may be in store as the cdc is deciding whether these protocols are enough to left the cdc's no sail order joining me to discuss is royal caribbean ceo. it's good to have you on >> thank you for having me >> you've put forth along side norwegian ceo, 74 recommendations to the cdc are you confidence this is enough to get the approval so you can get your ships back sailing? >> i think we look forward to working with the cdc the list of things that would deal with the pandemic the adopted as we intend to do would make it safe to restart sailing on a growing basis >> you're saying every passenger needs to get us a test who is providing the test and when will the test be administered a will the of your passengers fly in before they take one of your ships out to sea. >> that's right. first, let me say that i think this is an unusual panel lots of industries, lots of companies have put togeth

jonathan: coming up next on the program, seema shah, principal global investors chief strategist.surveillance ." ♪ >> i think there's honestly much more rationality in the equity market when we look beneath the surface. >> there's all this comfort globally around debt levels, and at some point it will be too much. >> the fed needs help. the fed needs a partner, and the partner is fiscal policy. stimulus would be a nice to have. i don't think it is a need to have. >> the only reason not to be pragmatic is fear of instability, which doesn't seem to be in the cards. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. good morning -- tom: good morning, everyone. a simulcast on bloomberg radio,

financials are also getting a whack today and for more on that let's go to seema mody for "trading nation>> tumble today in the broeder market sell off and following the report more than $2 trillion moved through the banks between 1999 and 2017 for whether this is a no touch zone let's bring in the trading nation team. with banks now likely facing more skrutsncrutiny, how would u trade financials >> they're really terrible story. the biggest story for the banks right now taking the money laundering issue aside is the fact that the fed is suppressing interest rates they are not practicing yield curve control. they are creating yield curve control. it's the fact that nominal rates are so flat it's really killing the banks. what's happening is they are following the path of japanese banks and european banks that suffers massive profit loss by having absolutely no yield and no ability to have care. i think within that environment, it makes it a very difficult industry to trade. that having been said, though, even today, you see jpmorgan chance out performing the broader index. that is the sta

now over to seema mody for trading nation >> analysts placing their bets on one stock that could benefit to normalcy. analysts initiating ulta bup tby with a buy rating. consumers pivot back to business and wellness let's discuss the trading plays with our wellness team projections from ihs think that two-thirds of a second quarter drop will reverse in third quarter. if that holds true, is it time to invest in some of these growth oriented names? >> absolutely. i think that this particular -- i think the reopening will likely be less exciting than people think i don't think it will be a strong as people expect. a stock like ulta that has managed to keep. they lost 26% sales year over year they gained in e-commerce 200% they tripled their e-commerce sales which is to say they managed to stay in the game. in a show of true enthusiasm, mary dylon came out saying they will continue to reopen stores going into 2021. i think this reopening play definitely has some legs in the recovery >> how do you play the stock trading at 233 a share >> it also looks quite good on the charts you look at the

jonathan: seema shah of principal global investors on the need for fiscal easing ahead of the payrollseport. here's the price action. process at worldwide, with equity futures declining a little bit and the s&p 500, down 0.25%. the epicenter of the pain is the nasdaq, futures down another 1.4%. if you took away the equity market and i just showed you fx, bonds, and maybe a little bit of credit in the last 24 hours, i don't think you would have guessed what was playing out in the nasdaq yesterday going into the close. tom: real quiet tape into that jobs report. we had wonderful perspective this morning. claudia sahm is always really something, looking for $6 trillion of stimulus. that dovetails with a bank like j.p. morgan, where a few weeks feroli madeand clear they see change ahead. thereassman is with us, had economist of a partial banking -- of commercial banking. about 95% ofack to where we want to become a but going forward, we've got big challenges still, until we get a medical answer. i think the biggest challenges are faced by anyone connected to air travel, tourism. that inclu

seema yasmin former medical analyst and detective at the cdc. dr. yasmin, thank you for being on. let's talk about what elizabeth just reported out on this aggressive timeline from pfizer and the german firm beyond te . biontech. do you think they could have a vaccine ready as soon as income month? >> i don't think so, brooke. historically with vaccines it could take decades to develop them. the fastest we've ever done it is with the mumps vaccine and even that took four years. i think it is important that we manage the public's expectations especially because people are so fed up and people are thinking just give us a vaccine and then things can get back to normal and people are hopeful that could happen next month, then it is so disappointing if it doesn't and i do think that it will take longer than that and that the vaccine manufacturers have to be careful about managing those expectations. >> given that, you can understand why a lot of americans are worried. a lot of people will want the vaccine, but they want to make sure it's safe. so you have this safety pledge now being t

dom chu is watching materials, seema mody tracking the ipos that hit the market last week and phil lebeau the latest on the drama with nikola let's start with materials, dom. >> materials are important, because right now as things currently stand, they are the only sector in the s&p 500 that is actually positive over the course of the last month as you can see here, these are three etfs that attract the materials sector, the ipf sector more broadly and the energy sector the energy sector down 12%, the worst performing sector in that span and that gap you can see between the best and worst performing pretty wide here almost at the widest point over the course of the last month stocks to focus on let's accentuate the positive. check out these names. we're talking first of all about westrock, international paper and passion for america. they were all focused on paper probably the stock you want to focus on the most, the one that's had all the momentum to the upside here for the long term, sherwin-williams it's down 2% today but that right there is a record high and it's just 5 or 6% off righ

seema verma. there was a theory in the white house that secretary azar was perhaps leaking unflattering information about president trump during the early days of the pandemic, so the president turned to michael caputo, an ultimate loyalist, someone who has dated back with the president for decades, as you noted, with roger stone, a long-time ally. caputo came in to hhs and very quickly started making a mark. he pushed different agency officials in the fda, cdc, nih to try and line up more with the president's message on the outbreak, which is very different than the message that scientists have come to. >> yeah. i mean, the message has at every turn, right, been optimistic. we're turning the corner and cases are going down to zero. young people are fine. i mean, public health people tend to be people that are worried about the worst risks and try to communicate those ably. i want to talk for a second just about the morbidity mortality weekly report. i remember my dad was in public health, i remem

>> and i'm really sorry, i'm going to have to get seema verma and the secretary to respond to that. that's not within my realm of responsibilities. >> well, i would urge you to do that because if we're providing funds to long-term care facilities that can't be used, then it's not accomplishing the concern that all of us share. i want to go on to another issue because there was a report that just came out about hhs seeking bids for $250 million contract for public relations campaign to defeat fear and inspire hope regarding the pandemic. and while i think all of us want to make sure that americans know that there is going to be a better time ahead for us, the timing of this contract raises real concerns about a potential intersection with the president's re-election campaign and more importantly, congress didn't direct hhs to conduct this campaign. so is the $250 million that's going to that coming from funding that should be going out to our long-term care facilities, to our hospitals, to our medical providers to actually respond to the spread of covid-19? and what is the purpose of

seema? >> the cruise lines which typically lead the market lower as we have seen in 2020.resuming sailing if the ships remain covid free, carnival could gradually bring more ships to europe and eventually the u.s they have gone billions of dollars in debt to survive the krrcceos of all cruise lines saying looking out to 2021, bookings are rising. but if there is any concern about quarantining like we saw in march, that could raise concerns about sailing and there hasn't been a green light when they wiwhen they wil allowed to resume. norwegian cruise lines is the most leveraged operator. >> so the next question, can they right the ship, so to speak. >> caller: i'm neil and this is my son walker. >> should i buy more, hold or sell on norwegian cruise lines >> always a bonus point for including a cute kid >> walker, you are the man when we get back to new york, come and visit us. karen would say if you are holding something, you have chosen to buy it because you have made the decision that today's closing price you are comfortable owning it. let's just focus on buy and sell m

that's the news update this hour seema, i'll see you back here in an hour. >> thank you >>> cruise stockspandemic. the cdc putting into place a no sale order in march. and ships haven't been able to sail since then. many expect an extension to be announced this week. is now the right time to get back into the cruise names which rallied 10% on friday? we have guests joining us to discuss. patrick, i'll start with you you really have to have a stomach for volatility in order to invest in cruise lines and part ways with traditional valuation metrics. these are some of the most highly leveraged names on the s&p 500. do you think the recent gains we've seen are justified >> you know, we -- i will tell you right now the only certainty is uncertainty with these names. i'm of the view that it's going to be a much longer and slower recovery than folks are expecting. certainly we saw the names jump up significantly at the end of last week in anticipation that you might have some cruising sooner than later. i'm of the view that the cdc will extend no sale order for at least one to two months, but ag

order to cover themselves over the next couple of months it's the same story for the cruise lines >> seema they have this somewhat earlier date to get back to sailing, do they have a backlog of orders for this at this point or is it just the market signal saying it's back to business eventually >> there's been this reoccurring theme and narrative, as we discussed last week with the ceos, 2020 bookings look strong and even for the end of this year where there are some sailings in the calendar, there is that pent-up demand that the ceos continue to discuss while many people will say that a cruise may not be for them, and especially after what we saw take place during march at the height of the pandemic, there is an unusually loyal customer base when it comes to the cruise lines. as to what happens, when the cdc lifts their no-sail order and that demand leads to people getting on a ship, we shall see but that seems to be what the market is expecting. >> all right we'll watch that fascinating dynamic this morning as the dow is up almost 400 points as we close out the month of september and the

seema mody with numbers. >> sarah, rh hitting the ball out of the mark, adjusted earnings of $4.90 versuso benefit from this covid shift towards spending towards the home. that's reflected in the monthly numbers as well. core demand of 47% in august, already up 44% in the month of september. you're seeing the stock up as much as 15% in after hours trade. wells fargo pointing out second home demand has been elevated among higher income households that's part of what's driving the demand for its furniture this even portfolio the pandemic was trying to shift from sleepy mall-based retailer with omni based with those galleries in major urban cities. >> thank you very much don't miss jim cramer's inclusive interview with rh's ceo. these tomorrow 6:00 p.m. on "mad mone money" stocks up after a selloff. we'll look where there could be buying opportunities next. we love our new home. there's so much space. we have a guestroom now. but, we have aunts. you're slouching again, ted. expired, expired... expired. thanks, aunt bonnie. it's a lot of house. i hope you can keep it clean. at least geico mak

part of this cohort that had seen a magnificent rise so we will continue to mo monomonitor this stock seema the cruise lines are down 9% or 10% per day this morning the healthy sale panel submitted a 65 page report on recommendations that they feel won't happy against now these recommendations that include testing, face coverings, daily temperature checks have been submitted as health officials consult whether or not to lift their no-sale order. the protocols while extensive still lack detail around who conducts the testing it is raising fresh concerns about whether or not they can bring more ships to italy and germany in the coming weeks. they say anothership will depart today but shares of carnival down as much as 10% on the day carl, back to you. >> the weakness travel names not limited to cruise lines. airlines are down as well. >>> they're all down 5% to 8%. a rough morning. we're looking at the major carriers they're all under pressure and a few things are weighing on them right now. first there was expectation that was building into next week that perhaps there was a cares act 2 that

let's get o'er to seema modi who joins us with the ceo of trip advisor. >> thank you welcome steven cofferus today. >> thanks so much. a pleasure to be here. >> we're trying to understand where the world of travel goes from here. tsa highest number of screenings since mid march. you have good visibility 30 to 60 days out. what does the fall look like for the world of travel? >> it looks good if you're planning a domestic trip we're not back up to last year's level, to be clear, about you we do see a strong interest in the short one to three to four-day domestic trip with september being a popular month to do some traveling. >> one of the revealing trends this summer, stephen, was the shift of vacation rentals. because you make over half of your revenue from hotels, this pivot to homes, what that means for your business long-term? >> we do have quite a few vacation rentals, hundreds of thousands of them so we try to indicator to any type of travel that our travelers are interested in. obviously during a pandemic, people are most concerned about their safety, they're looking at those standal