wells fargo. in 2016, wells fargo's account scandal was exposed. they've squeeze there employees to create three and a half million unauthorized bank accounts. do you recall how much wells fargo was fined in 12 to 16? >> i want to say 85 million. >> that's right including 100 million from cfpb. that was a big fine. cfpb and other regulators were right to impose it but keep in mind wells fargo is more than $5 billion in profit that year. maybe we shouldn't be surprised a fine alone was not enough to persuade wells fargo. the following scandals came to light. the consumers fight for unneeded car insurance, the customers documents without authorization and from service members. they regulators said enough. under then shared reserve janet yelling leadership, they put a tap on wells fargo's growth. it was shocking at the time but it wasn't enough to get well since that time, they've closed customers accounts without authorization damaging people's credit reports, salt and the wind continued to charge then, overdraft fees even after the accounts were clo

it appears that cheating customers is simply in wells fargo's dna. irector chopra, the asset cap on wells was a much needed step, but it's clear we are dealing with the baddest of the bad here. what are the steps should regulators consider to hold wells fargo, and other corporations, that break the law over and over, to hold them accountable? >> well, i don't want to cover, comment on any specific case. but here's what i see. i see federal enforces and regulators are very quick to later hammer down on small guys and small businesses. they will name people individually, they will ban them from a certain business practices, and often criminally refer them for prosecution. but there is a totally different standard for large firms who break the law over and over again. yes, they do pay a fine, but often it is less than the profits that they made from the misconduct. we have to look at a broader array of remedies in banking, the federal deposit insurance act talks about limitations on fdic insurance. there is asset caps like we see and that the federal res

it's been a tough slog for the auto stocks following a string of bearish comments from analysts at wells fargolowered earnings estimates on tesla for the next three years citing higher abbattery cl costs and they've risen 50% over the last year and they note that tesla does have the pricing power to pass along some of those costs to the consumer, but expect underlying inflation to eventually catch up with some of those margins. you can see tesla shares are up 3% in trading today. along the same vein, a double downgrade for ford and general motors at play, as well and analysts lowering both the names from an overweight or buy to an underweight or sell saying 2022 could see profits peaking with the automakers with a shift towards battery powered evs placing two greater strain on the margins in the coming year a lead and both down 4.25% to 5.5% for general motors kelly, tyler, i'll send them back over to you >> the man behind the bearish market call moving ford and gm today. carl langan, senior equity analyst at wells fargo the reason you're downgrading them is because the untold electric vehicle

wells fargo making a new call that inflation and an economic slowdown will be a recession and send thet rate higher one of the authors behind the report paul christopher head of global market strategy it's good to have you again. welcome. i should note you made this call before the big sell-off. what is in the data that tells you a recession in q4? >> we've been watching the data slow all year. what really triggered the call we're picking up acceleration since march and particularly since mid-april. starting to see unemployment claims pick up the highest level since february and they're not at all as strong as they were in the spring of '21 when covid was still a concern. we think the economy is slowing under these double blows of inflation and rate hikes that are here and coming. >> so, you know, if we look at the, for instance, three-month, ten-year yield curve, that's at historically deep levels, 1.7 points it's not necessarily telling you that recession is around the corner and i wonder if this is going to be one of those weird environments where nominal growth is so strong that we

wells fargo says its base case is for a modest recession in the united states. was an earnings warning from target that rippled across markets yesterday. the earnings story is starting to crumble, one of the pillars of support many pointed to now in question. in terms of what is happening across the european space, the handover from the u.s., losses of 1.6% across the benchmark. the dax down almost 2%. the ftse 100 lower by 1.3%. the u.k. is grappling with inflation have not seen for about 40 years. we will see how things are playing out across the sectors. every single sector today is in the red. the lease bad comes to energy and health care. at the bottom of the list, consumer products, retail and autos. financial services also taking a big hit. the fed's charles evans wants to see a neutral rate in the united states, and then a pause. we heard jay powell say he would be happy to go above the rate needed to get inflation down. this is rippling across treasury markets. we see a modest bid for u.s. gilts and bunds. 2022 shaping up as the most volatile year for t

meanwhile wells fargo took a bearish view of the ev supply chain. jack: they went bananas on those stocks, what was the reasoning for the downgrades and do you think they are right? al: it's no shock i think they are bearish, they would represent the extreme bearishness, they say prices of lithium, nickel, copper, are going to be elevated for a decade because of the ev boom, that bleed into profit margins afford and gm. they have a line in the reports still that they are selling unprofitable compliance so they slashed their targets and upgraded raw material producers. jack: is elon too busy with twitter to pay attention to tesla? al: no, but it is eating into his time. he spoke at a conference 20 minutes of that was spent on what he's going to do with twitter. that is how much time he is spending on it. jack: acclaimed researcher bob jack: acclaimed researcher bob arnot your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching yo

warren buffett disclosed a $3 billion stake in the company, wells fargo higher as well, even though butchte exited his stake in that company. walmart is getting hammered after its results. warning about the impact of inflation on its customers home depot is higher after a strong quarter target and lowes both report their results tomorrow. >>> moving on to commodities, oil is down slightly today holding around the $113 per barrel mark, but that's still close to the highest level in nearly two months. energy stocks higher today and are continuing strong gains recently, and moving on to the bond market, the ten-year yield rising today as investors jumped into stocks and out of bonds also, comments from fed chair jay powell speaking this hour, this may be the key comment. we need to see clear and convincing evidence inflation is coming down. if we don't see that, we'll have to move more aggressively. but the ten-year at 10.96 is still down sharply from its peak of 3.17 last monday. >>> now, turning to robinhood, which has seen its stock sink 70% in the last six months and as crypto gets crush

. >> i did not deserve for somebody to scam me, i thought it was wells fargo protected me.were not. michael: bank imposters had just trick her into sending them all their money through "newshour. the bank denied her claim. now a flood of cases liqueurs have caught the attention of two u.s. senators, elizabeth warren of massachusetts, and robert menendez of new jersey fired of this letter to the zelle ceo, saying the app eggs popularity is putting many consumers a risk as fraud flourishes. banks letting consumers suffer, blooming them for getting duped. >> we are not giving you your money back. michael: she was in the car when the text arrived saying wells fargo security, did she make these transactions? i said no. michael: then that call, supposedly from wells fargo, saying someone was draining her account. >> he is telling me to zelle the money to myself to protect it. i say, ok, because i am believing this is my bank. michael: she transferred every dime in her account $811 in all and this receipt said "is there reversal." so it seemed she was getting her money back. she w

what was interesting as warren buffett's berkshire hathaway leaving its wells fargo state. manus: they are lumping it large on citigroup. thank you very much. we look at it too $.9 million bet on citigroup. concessions. sweden and finland to nato are facing complications after turkish president erdogan says he was -- not allow them to join the alliance. >> sweden and finland have a clear stance against terrorist organizations throughout this process even if they say they are against terrorist organizations, they have statement that they will -- certain terrorists. manus: let's get to our european government managing reporter. is this a russia-stumble -- is this a moscow-istanbul told? -- tilt? >> the expansion of nato north is a key move not just finland, but sweden who feels like they're are under pressure from russia and also the baltic nations. those three countries on the south side of the baltic sea who have been most acutely sensitive to their vulnerability to russia. the oil quip thing is that putin has been threatening with retaliation if they declare their colors.

michael schumacher joins us out of macro strategy at wells fargo.you have the courage to write the notes that he writes, you not only have to put a rates on it, but you put a date on it. i schumacher is one of the very few saying here is the terminal rate. 3.05% is what he said in the middle of next year, and you go on to a higher statistic rent --. what is the likelihood of that happening given the worries about growth slowdown? mike: we think the market is tightening, but the reason is policymakers are talking tough. i know. the market is fading over the last 15 years, that o it it is d in at 50 for the next couple of meetings, so we think there is a good chance that the terminal rate its 375 over the next couple of months. that would feel bad for risk assets but that is the idea for tightening conditions. lisa: how bad will it feel for equities for what you've priced inverses versus credit, which has inarguably not prices in yet? mike: i talked chris harvey off the ledge, but there will be a downturn of 10%. lisa: hold on. you think there is anot

wells fargo downgrades and same day morgan stanley upgrades it what do we do? some to 23 some have price targets of 18. stick with the charts. >> okay. coming up, we're taking a look back on one of tony's trades that's deep in the green through two weeks of red for everything options action, check out our website. while you're there, sign up for our newsletter much more right after this trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade >>> welcome back >> given the week's volatility, i think there's a lot of interest if you will in finding some level of safety and by looking at a name like t mobile which is generally speaking a more defensive name

he is suspected of robbing wells fargo.a $2,500 reward is offered now for information leading to an arrest. >>> the oakland animal services shelter trying to make it easier for people to adopt dogs as it experiences over crowding. starting today it's extending hours and adoption fees will be cut from $150 to just 20. good morning. it is friday may 5. i am amanda starrantino. >> i am len kiese. good morning. glad to have you with us. we begin with first alert meteorologist darren peck and the cool down. >>> inland valleys, some of them, we will be 15 degrees cooler than yesterday. look at the scene from the top of the hills of the west side of the south bay. that's santa clara. san jose is under the clouds. everybody else is too. it's pretty to watch from above. here is reality of what it will look like from outside your door. the dsare not as low today. it's not like they're impacting the drive. yesterday it was fog on the golden gate bridge. it is not that way this morning. but the clouds are more widespread. even showing

dani, you sent me a story about wells fargo. a variety of recessions. the nasdaq is down. ni: it was up this morning when i checked it about 20 minutes ago. jp morgan is cutting theirs as well. it is scary out there. speaking of something that may be array of sunshine, china invite -- dividing investors in terms of their look at the covid lockdown. we will have more on that in a bit. this is bloomberg. ♪ manus: this is "bloomberg daybreak: europe." let's get first word news. juliette saly in singapore. juliette: bloomberg has learned that the eu top regulator -- into the european union after they split. ecb, known as disk masking -- mapping. they have found capabilities in the region. target shares plunge the most in 35 years after a cut in the forecast due to soaring inflation. there is little sign of easing. target profits are supposed to come in basis -- two basis points lower than the forecast. tencent shares tumbled elite trading after warning of sales in the quarter. they blamed it on left out in china and the war in ukraine. now they state revenue -- by as much as 5.

to ev to strain it. >> you're looking at a rare double downgrade from wells fargo.hey have moved both of these companies, gm and ford, two notches. going from overweight to underweight saying it's peak profits here in 2022 why? because both of these companies will be investing billions over the next several years as they ramp up ev production. as you take a look at ford -- let's start with general motors. as you look at gm, they're targeting 400,000 evs in production by the end of 2023. in the case of ford, today they said we plan to have 600,000 evs built by the end of 2023 during the ford annual meeting today, kreceo jim farley alludet the fact they have real challenges right now and in the future when it comes to the supply chain >> although we see the chip shortage easing in the second half of the year, as we stale our battery electric vehicles, we will have new supply challenges in both semi conductors, electronic components in general and batteries and battery ra materials. >> all of this comes the on a day when the smaller ev automakers all saw their stocks m

jonathan: let's go to the chief economist at wells fargo. where is the space for surprise this wednesday? >> i think the scope for surprise wednesday is not necessarily in terms of being a rate hike. everyone is primed for 50 basis points. could they go 75? possibly. the bigger chances in terms of the few e, how big is it? we are expecting a $40 billion cap in terms of treasuries and a 20 billion cap in terms of mortgage securities. they can go bigger than that and that's where the scope for surprise is. the other thing is what does chairman powell say at the press conference? does he come up really hawkish in terms of the press conference? those of the two places i would be looking for. lisa: what do you view as the fed goal? do you have a sense of the economic ramifications now instead of three months ago? >> in terms of that, what they want to do is show that they are serious about tightening step frankly, the mortgage-backed securities, those caps really are not going to find because there is very little going on in terms of mortgage-bac

just last week wells fargo ceo talked about a deterioration in consumers' ability to pay. some could argue that the customer base for wells fargo and jpmorgan are slightly different. >> jpmorgan argued that. >> their customer bases are slightly different jpmorgan has slightly wealthier clientele than wells fargo so maybe they're seeing something slightly different at this point in time but if the market is forward looking, at what point do you say in six months we may not see a recession, but in eight things may turn soft, in nine months. and when do you start pricing that in? we're not that far, to dan's point, off of a low for jpmorgan 6% rally sounds great but maybe we're still looking ahead to that. >> i feel like the stock at this level is pricing in a lot of things it's not pricing in great loan growth if you've got good loan growth, you get a bigger expansion in the margin it's not pricing that in so i feel like it's also pricing in potential additions to the provision for loan losses not priced in. but you have other businesses doing very well. the wealth managemen

leave it there mike schumaker with wells fargo. rick, what do you got for us >> well, first of all, it's $36 billion and it is 10 years the grade not good i gave it a d plus dog plus and the reason is pricing. yield at this auction was 2.943% of course, we're hoping for 3% coupon, but the point is that the one issued market was training right around 2.929. it had a 1.5 basis point tail and that's where the big demerits came from on the grade. covered roughly in line with 10 auction average and roughly in line on indirects. rather lofty 10 option average the best with regard to metrics was the direct at 18.2%. that was the best since june of '21. take 11.5% below the 10 option average so the metrics were pretty good but the pricing really did hurt and it does underscore that this is a 2 for auction if you have direct loans, student loans by the federal government, this is the may auction on 10 years that helps pick your rate and the rate will be basically the 2.943 plus premium of a little over 200 basis points so if you have a stud

and when she worked for wells fargo, let me tell you wells fargo has not done half of what it should be doing if it were not for brenda wright. and let me tell you, one year alone, $60 million to almost 300 organizations because it wasn't just about giving to the large institutions that had development teams to apply for funding, it was about the small african american art art it was about the different groups. they have the heart for the community and no one could wear stillettos like brenda wright. and let me tell you she will step just as good in those halls of power in those stillettos just as she would step in the halls of the hood to transform community in the way that uplifts people. and so the reason why we're honoring brenda wright for her philanthropy is because of her not only able to support and uplift organizations, but to support and uplift a mentor for young women and girls. part of why i dress so nice is because brenda wright and i see her daughters all in here. her daughter amanda, but her children. pull your dress up right, fix your hair because she cares. her whole

. _ for me, the last round at augusta, played well in dc at the wells fargo there, and and playing — this week, so i think— rounds earlier this week, so i think when your game is feeling like that, — think when your game is feeling like that, it isjust a matter of going _ like that, it isjust a matter of going out there and sticking to your— of going out there and sticking to your game plan, executing as well as— to your game plan, executing as well as you _ to your game plan, executing as well as you possibly can and just— well as you possibly can and just sort— well as you possibly can and just sort of staying in your own — just sort of staying in your own little world, and i did that — own little world, and i did that really well today. it was nice — that really well today. it was nice to — that really well today. it was nice to get off to that good start, _ nice to get off to that good start, and sort of keep it going _ stage 13 of the giro d'italia goes from sanremo to cuneo on friday before the race moves into the mountains. there was another italian winner on stage 12 for the

those thursday night filings finally closing up at stake in wells fargo, taking the steak and a lot of including citigroup. those shares higher by about 5%, and ally shares also rallying this morning. maybe buffett and his team seeing some opportunity there on the credit side -- or the loan side, i should say. in china, headlines crossing the wire a little while ago with regards to that meeting with a lot of the chinese tech companies, the vice premier saying the chinese government to support these platform companies. those shares higher by about eight in the premarket -- by about 8% in the premarket on alibaba. in the u.s., twitter shares continuing to sink lower, down about 1.5% on the day as you continue to see a lot of nonsense going on with what elon musk may or may not do. tom: romaine bostick, thank you so much. more this evening on walmart and home depot. it is yield up and price down. that is the mix for something rare in the last decade, a bond bear market. winnie cisar is global head of strategy at creditsights. you can talk about spreads, analyze loans in different categori

a lot more normalization on the front end of the curve >> chris, thanks so much chris harvey of wells fargoities still ahead, the foed fulted th housing boom and mortgage rates surging above 5.5% and today's mystery chart dropping 30% after reporting a huge miss on earnings and with drew its guidance. one legendary investor called it his top pick three months ago. frrl wale reveal it next with wal green's and 3 drz m leading the wa ne e ty,ikonofhe biggest laggards again - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly. they sent us applicants that matched what i was looking for. i've hired for every role, entry-level technicians, service advisors, store managers. ziprecruiter helps me find all the right people, even the most difficult jobs to fill. - [announcer] ziprecruiter, rated the number one hiring site. try it for free at ziprecruiter.com lemons. lemons. lemons. lemons. look ho

wells fargo could be wrong, materials could be overstated.n that case jim will win, but on shorter term basis, this stock technically broke down it is not magic. what it means is where the buyers should have come in at previous support, not only did they not come in, a lot of them turn into sellers. i can't have anything to do with this i have to circle wagons around names i want to be in fundamentally and i have plenty of stocks down 30 and 40%. i don't need more. i got out of gm with a small gain, let a bigger gain go away. it was not a great situation for me, but i didn't want to see a gain turn to a loss. had i stuck around past the breakdown, would have been one more stock in my portfolio with a loss so i'm not there, not interested in being there i wish jim well. >> we have to bounce i will give you the last word. >> listen, i don't argue with what you're saying, josh i merely point your nice comment, broken stock, broken sector, broken market frankly applies to almost all of the stock market now, so -- >> i agree >> i know you do we're

, i would cite industrials for performance, financials in the fight, jpmorgan, bank of america, wells fargo dumped by berkshire, symptom up 2.5%. i like the option but i think while below the 200 day moving average in the s&p, nasdaq, in the russell, every rally is guilty until proven innocent this one will likely fall apart. i don't know how many more days it will run for. maybe there's a couple percent higher in the s&p. i want to talk about the consumer and that the economic data we're getting being good. it is not. walmart told you it is not in fact, they might have had a good revenue line but the other thing they said was the amount of transactions is down by 12% year over year those are not good comps they're charging more for things which they have no choice, the consumer is paying up, but doing less that's a recurring theme we don't get earnings reports, same store sales, economic data, don't get it always adjusted or real terms a lot of what we get is nominal, look, higher number means good university of michigan consumer confidence number is, hold on, the lowest reading, the lowes

tom: we talk about the equity market and how you synthesize wells fargo economics. so much of that was invented by john silvia a number of years ago and he was front and center on the job market. what are you hearing from wells fargo research and economics about a fully employed america and role that into what it means for the stock market. >> that's a great question. tim quinlan and i talked almost on a daily basis. one of the things he points out is if we are going to have a recession, it should not express itself in the job picture in the place to look is in claims. that's the first place you're going to start to seek distress as claims go up and then you get worried. at this point in time, claims remain pretty well behaved but when they start to spike, if and when, that's when you have to worry because that's will feed into unemployment. every time we've had a recession, on woman has spiked higher. tom: michael mckee will be with us on claims in the united states at eight early a.m. new york time. lisha -- lisa mentions the profitability of texan what kind of pr

bank of america, blackrock, jpmorgan, wells fargo, u.s. one, morgan stanley, i'm sorry to go through the list everybody has ownership, i don't mean to rub it in, losses in some cases 30 plus% from the highs. what do you think now? >> well, to me it is no surprise that financials are off as much as they are, markets are increasingly pricing in risk of recession. that's not our base case as you know yet so we're currently neutral i am tempted, seduced by goldman, sachs and wells fargo, but we own jpmorgan and black stone. i get a lot of twitter hate on jpmorgan calls i made on the show, unlike weiss who thrives on it, i have thin skin. we are not going in, not because of the twitter to wells and goldman because we don't think it is time yet we're pausing and owning what we own. >> speaking of, pete, goldman, sachs. that was the one stock that you either own or bought this year >> yeah. goldman, sachs it was around the 312, kind of close to where it is now, a little below that based on the jump it is having today, scott one thing i would add,

. >> rob, you added wells fargo may 16th right? sector by adding wells fargo. since then, sector outperformed the s&p by 3%. wells outperformed by 5% the sector had a tough year due to slowing economic growth and higher expenses and valuations like mayo said are much more compelling it is possible we're turning the corner we certainly think we are. jamie's comments about managing expenses, finding ways to increase shareholder value and potential for rates for returns are positive things we think we put wells in with jpmorgan, blackstone, and jeffreys we added to it, it is one of the highest quality banks according to quantitative screenings trades wone times book mid teens dividend growth. it is attractive way to play financials and was the addition that put us overweight. >> we're taking a quick break. more trades ahead. - in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite

there was a double down this week by wells fargo to sell. >> we think about future economy types of stocks. ford, of course, is a general name, a legacy economy type stock. the thing is it is trading quite a big discount right now. it is trading less than 13 times earnings. but they sell the most popular and high margin vehicle, the f 150. i think people are discounting the runoff for ice automotive. at the current evaluation, ford is trading at 445 per electric sold. compare that to 780,000 in enterprise value for tesla. i don't think all the damage is done necessarily. liken toy, i'm inclined to go out in time and dip my toe in the water and look at data calls. at the time stock was about 12 and a half and a buck today. those will cost about 2.40 per contract and they represent a hundred shares apiece. so that is it $2,400 in total. this is a way to get some upside exposure if you're so inclined. i do own stock and january calls. mine is a higher strike and i got into them a little too early. >> what is your take on this trade? >> i think for traders that us manied out what ford was trad

they say he target the wells fargo on cleveland avenue yesterday afternoon shortly before 5:00. here is a look at the suspect. he was seen wearing this multi colored facial covering. a $2,500 reward is offered for information leading to an arrest. >>> the man arrested for attacking comedian dave chappel on stage will not be charged with assault with a deadly weapon. l.a. times reports the da's office declined felony charges saying the evidence did not constitute felony conduct. as jerika duncan reports police are revealing more about the suspect's history. >> reporter: it was quite a scare for dave chappel. los angeles police later confirmed that the suspect was 23-year-old isaiah lee. two years earlier this is lee, a self described rapper who posted a song in 2020 named after dave chappel. the motive is unclear. police are looking into how lee got a replica hand gun with a knife blade so close to chappel. >> given the size and description, how did that get through screening. >> reporter: chappel was not injured. he continued his performance at the net flix is a joke comedy fest

wells fargo downgrading ford and gm to underweight from overweight on the concern they could reach peakrice target on ford in half, to $12, slashing gm's to $33 from $74. trimming the price target on tesla from $900 to $960. morgan stanley reiterating its buy rating on rivian, following its smaller than expected quarterly lost phil lebeau joining us phil, do analysts think ford and gm will hit their ev targets what happened to that excitement >> the excitement is still there if you believe they can hit that but let's be clear, many people are skeptical that ford and gm will, a, hit their volume targets for '23 and '24, and second of all, even if they do hit those, it's going to be much costlier for both companies. it's costlier for all automakers because raw material prices for ev batteries, all of that is going up the supply is not increasing what's that colin lingand the analyst at wells fargo was talking about. he basically said it's going to be more headwinds for the auto majors when it comes to evs in the future >> any signs of a cyclical slowdown they get hard hit by rising intere

taking a new sidable stake in citigroup worth $3 billion while dissolving a small amount left of wells fargoge bump in activision blizzard so hold for man $5 billion worth of stock at the end of the quarter that was purchased as a merger arbitrage play as activision awaited approvals for the $69 billion take over by microsoft. they mentioned during the shareholder meeting a few weeks ago, buffet said they hold 9.5% of the company so they purchased more stock since quarter end since these 13-fs revealed and huge boost to chevron. the $26 billion worth of stock which we also had known since that time, sold in pharma names as well during the quarter dissolved a stake in abbvie, bristol-myers squibb and royalty pharma about by 83%. so a lot of selling in the pharma names and purchased 8 million more shares in apple so a lot of moves this quarter by berkshire hathaway. >> thank you shares of eli lilly topping the tape the newest type 2 diabetic drug guesting the fda stam of approval they are expected to bring in $14 of a fresh all-time high so a big pharma guy, where would you be >> despite berks

they last talked to investors i wonder what they're saying about the consumer we heard the ceo of wells fargo last week talk about the deterioration of the consumer's ability to pay jpmorgan sounds a little more optimistic about how the consumer will fare >> yes, much more optimistic you heard dimon this morning talk about the strength of the consumer, the strength of the economy, largely thanks to quantitative easing, monetary easing, fiscal policy as well. he said that should bode well if we do go into a recession. he also talked about the credit quality and said a lot of their businesses are really, really focused on prime consumers and therefore he's not that worried about the potential stresses in the economy and what that would mean for their risk exposure. >> leslie, thank you leslie picker at the jpmorgan investor day. >>> strong performance banks lifting the entire market. stocks bouncing across the board after the dow logged its eighth straight week of losses. is this the start of a sustained comeback let's bring in tom lee tom, is this rally convincing to you? >> you know, i would

she is the director and senior economist with wells fargo corporate and investment bank. thank you for being with us. obviously, given the state of the jobs market, there are a lot of people that are getting a steady paycheck. it allows them to pay for stuff in their lives, but on the inflationary front, this is been one of the big questions. at what point does the spending start to get somewhat stretched? what is your general assessment of what we are seeing right now? >> we are seeing consumer spending remain resilient. as you mentioned, we have seen real spending increase every month is here. that is in the face of this elevated inflation environment. from that perspective, we do have underlying strength in the consumer, but we are seeing many of the tailwinds that have supported consumer spending. they are beginning to deteriorate to the fact that households have had to lean more heavily on the balance sheets and save less over the past few months to fund spending. it is an important dynamic, when you think about the overall pace of spending, going forward. jon: kriti

. >>> wet conditions today at tpc for round two of the wells fargo championship. those conditions did not stop former cal bear from having a day. there he is sinking the eagle on the par5, 10th hole, shot a four under 66. four shots, three shots back in the lead. the leaders will be jason day. sank the birdie. 10 under the tournament. you can watch this weekend's actions right here on kpix starting at noon on side and sunday. buster posey day and the grizzlies game three, simultaneously going on at the same time. mission bay is the place to be tomorrow unless you are in a car, i would say transit is your friend tomorrow. there it is right there. the traffic report, too, we have done sports and traffic, back to you. >> thank you, charlie. >>> up next, bay area college baseball players

wells fargo has the most exposure, bank of america the second so i still like the banks.overweight i still like health care as a more defensive area and i remain underweight in technology. let the dust settle. it's going to take a while for those to recover, i think. >> anything to read from the reaction of meta to the snap news here? it's trying to hold above its lows obviously people have been saying for months that it looks inexpensive. >> including me. >> sure. >> i own it, i have been adding to it. i kind of think 14 times earnings, not price to sales, it's actually very, very cheap they have size and scale they have 2 to 3 million daily active users, monthly active users. they grew those numbers sequentially last quarter, generating a lot of free cash flow $48 billion in cash, by the way. i feel like if they can get reels right, and they have to get reels right, but it does sound like they're making some progress and that's going to be the second half of this year so i'm staying patient with it. i do think for the long term this will be a winner. >> all right, steph

even wells fargo if you bought during the pandemic in the mid- 20s it traded all the way up close to 60, doubled your money and i think buffett made a big thing here but the other thing he did was paramount, if you notice that, this reminds me of his capital cities investment in the 80s when he put $500 million into capital cities to take over abc, and then it started to compete aggressively with nbc and turned out to be a big success so it's interesting that he's in these markets number one financials is very interesting, number two, you're also seeing hp inc, which was a beaten down tech stock and i think there's going to be a lot of opportunities. as a matter of fact, liz, in the bank of america fund manager survey this morning which surveys a trillion auw. managers are most short the tech sector than they have been since august of 2006. do you know what happened next the nasdaq was up 42% over the next 18 months and i do think there's some opportunity in value tech and i think warren buffett sees it too in his hp purchase. liz: scott, let me bring you into the conversation here.

number one, rickie fowler at the wells fargo championships stared it down. he liked it. why not? boom. and that was for bogey. longest recorded hole out for bogey since the pga started tracking. that was 130 for yards. and a special shout out to livermore softball, east bay athletic regular-season champions. a six a 6-3 win over the crosstown rival, granada. the cowboys 12-1 will be the top seed in postseason hits congrats to head coach andrew palazzo and his staff. that is enough. we will see you later. >> that was so sweet. and i'm talking about zeke and the action on the diving board. impress. coming up on kpix five and streaming on cbs news bay area. >> economic concerns are on the rise. and there could be a potential recession. >> federal reserve raising and now most admired alum! get up there. this is so embarrassing. the'you ruh roh... what are yoing it's anna gomez! who? our first gigillionaire! with at&t fiber, anna's got the fastest internet with hyper-gig speeds. i didn't know you went to this school. we have a lot in common. live like a gigillionaire with at&t fiber.

yvonne: wells fargo, mandy wan saying she is still bearish. look for 10 year yields to break above 3%. she said june is the tipping point. what we are watching his technicals as well, as we see this reopening trade really play out throughout the monday morning. whether we actually reach the break out across the 50 day moving average. we have seen that with the hc si. . the next want to watch a shanghai, whether we see that breakout. david: might it some help if we get above that with reopening stocks. consumption-related. breweries seeing some gains. air china, as you can see. we will talk about this story, whether that is hong kong, shanghai, or beijing. the narrative seems to be consistent, and for now it seems to be supportive of risk assets. it takes us into the oil story, which might provide the risk we are not seeing as much of right now. yvonne: it will be interesting to see, because given the month that we had, commodities were very much the outperformer. the energy space still remains the driver, that will be the key question. when you

ah welcome back to wells fargo with charles corruption senior fellow, the counsel for foreign relations and professor of international affairs at georgetown university. for his a question before they break, you mentioned that it was a false premise of mine to suggest that, you know, nato was militarize in ukraine than ever presented any military. so i had to rush and i want to mention 2 points here. before doing this show i was there work or respond and i was on the ground in libya and syria and it was pretty easy to observe there that you don't need to have a li on the entire population. the entire country to destabilize it. you know, it takes, you know, you know, only a small minority to wreak, care, rushes, history itself is, is a good example of that. and the 2nd point is that i'm sure you know, following the munich security conference that said top security conference in the, in the west. and it was at that conference that president allows you earlier this year, openly talk about acquiring the idea of acquiring nuclear weapons. and no one in the audience or no one in western capita

with me hello and welcome to wells fargo. there is one thing in common between the russians and the americans. it is a deep seated believe that the passage of time reveals the moral truth from st. augustan to martin luther king from president obama to president putin. and now present vibe and they all have a soul seated themselves and that causes with their right side of history. but is the divide between good and evil. indeed, so stark and irreconcilable. well discuss it. i'm now joined by charles corruption senior fellow at the council of foreign relations and professor of international affairs at georgetown university professor cub.

hello and welcome to wells fargo. there's one thing in common between the russians and the americans. it is a deep seated believe that the passage of time reveals the moral truth from st. augustan to martin luther king from president obama to president putin. and now president vida, and they all have a soul seated themselves and that causes with the right side of history. but is the divide between good and evil. indeed, so stark and irreconcilable. well discuss it. i am now joined by charles corruption senior fellow at the council of foreign relations and professor of international affairs at georgetown university professor captain. it's a very rare treat for me these days to speak to western i experts and perform officials like yourself. i'm very, very grateful. for this opportunity, but oh, i also have to ask you, why did you decide to talk to r t given the in, you know, the potential academic and professional repercussions that you may face? well, i'm some one who believes that we should keep the corridors of commu