Consolidation coming uber reportedly talking about buying an industry rival more here on cnbc. Good morning, good afternoon, good evening where wherever in the world you may be watching. Thank you for joining us on this last trading day of the quarter frmt looking at the very early trade. They are down slightly 120 points to the dow. The nasdaq with a higher inflied over weaning we could see a reversal. Blue chips look to erase the selloff surging nearly 600 points that surge to put s p and the dow in a win column for june major averages on track to extend the track for three on the run of the quarter, what a run it has been. On track to performances since the First Quarter since 1998 on track to cap its gain since 1991 dont leave out the small caps the russell 2000 since paula abduls rush rush was on top of the charts. In the quarter, oil is up 21 . This morning, shell saying it will writedown more than 22 billion in assets. Finally, dont forget about gold you love gold. Back at its highest levels since 2012 and since 2016. Everything has been up Second Quarter of 2020. Around the world, asia and europe looking to end its quarters as well europe and asia up well call that mixed. Fed chair jay powell and Steven Mnuchin will testify before the House Committee today. According prepared remarks, powell will call the future of the economy, quote, extra ordinarily uncertain and argue, quote, a full recovery is unlikely until people are confident that it is safe to reengage in normal activities the path forward will also depend on the relief and support the recovery that is needed. Lets decipher those words with our guest. Jeff, good evening to you in chicago, by the way. Support the economy as long as needed is that fed chair powell saying we are going to keep rates low and keep throwing money at the problem until that problem goes away does the fed have our collective financial backs . Unequivocally so, fed chair would continue to hammer the square into the circle peg they are not even thinking about or thinking about thinking about raising Interest Rates with that message, he continues to reiterate puts a lot of confidence in the market everything is up this quarter. The only thing down is your weight you are looking lean and mean, my friend. Jeff, im actually down 40 pounds in the last nine months thank you for noticing im just going to say it because im proud of it. I appreciate it, buddy we look at the charts you sent me the charts. It does appear we are at kind of an inflection point, what is your take on the path of least resistance of equities we can talk about the move in march to the down side. When we saw that low. That move higher when you look at the charts on the s p 500, we do have constructiveness we are seeing report and retesting. This is healthy. You see the market consolidating, it allows the market to move higher. It has been a fascinating quarter. To say the least, we have a little volatily to say the least. A lot of focus on sector rotation to understand you need exposure to certain sectors what did we sell in q 2, 2020 . We sold financials what did we buy . We bought biotech, energy there are relative strength in some of these. It is critical when we look forward to being a stock picker and weve seen in q 3, q 4 unwind in 2020 is biotech a vaccine hope trade or more like when you look at every sector out there. Likely that any sector will go down the only sector would could say that about thats right. You look at the broad swath to health care. Looking at ibb, the broad swath, a lot of these names that have a global sense of urgency. Not necessarily the focus of the vaccine. Lets not forget technology. Been the darling again this year look at software and sales force and adobe. Some of these names that we want to continue to move forward with in this new normal software continues to attract assets are you still buying energy are we talking about the doubling of Oil Prices Going forward when you go from one to two. Correct it has been a fantastic run in the last couple of months. Overall still one of the worse sectors out there. We utilize a lot of relative strength and technically showing more and more strength we are not harvesting gains or jumping off the ship yet great insight there thank you very much for the compliment my friend, i do appreciate it. You are the best, sully a busy morning outside the market as well sending it over to seema with the top headlines. It is tuesday, brian. Looking good there amid rising covid19 cases arizona is becoming the third state to roll back reopening plans shutting down bars, and theaters not seeing the same levels at the start, new york and new jersey are taking measures to prevent a second wave halting plans to start Indoor Dining in restaurants. Joe biden telling potential donors that his administration would end president trumps multitrillion tax cuts even though, quote, a lot of you may not like that. Talking about the policy goals the event raised at least 2 million. And uber is in talks to buy post mates for 2. 2 billion as it failed to buy grubhub the sector has has recently seen a spike in demand. The company shelved plans of offering after initially filing for one with the sec back in 2019 brian. All right, thank you. Well see you in a few minutes once again with stocks to watch. When we come back, stocks to watch but mirror, mirror on the wall could have new meaning if lululemon gets its way and boeing is down on the morning. Call it europes enron the latest of the stunning rise and fall of wirecard the question is, where did the billions go . A busy hour ahead when Worldwide Exchange returns now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. I geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. We talked about it chips, jets and working out at home lets get back now with seema and some of the stocks we need to watch lulu lemon shares higher. The Company Announcing the deal to buy mirror for 500 million mirror sells 1,500 interactive mirrors offering workouts and oneonone trainers. Lets turn to travel Norwegian Air shuttle cancels the deal to buy boeing jets also suing over losses by the grounding of the max saying it only had seven aircraft in operation since lay may. Boeing shares surged as they did the first test of the 737 watching shares of micron. Sa says sales jumped. People working and learning from home spur demand for its chips brian. Seema, have you seen one of those mirror things in real life my friend bought one i looked at one pre lockdown it was the weirdest thing but spurred a movement in me i guess it worked. Is that the secret . I actually looked at myself in the mirror and i was like yicks. It was weird. I think the workfromhome concept spurred this because you are at home and you have that inperson interaction. It is wofh. Work out from home still on deck, if the economy stays slow, what happens to big banks looking to watch out before jumping into financials. Announcer todays big number, 93 . Thats how much shares of tesla have soared so far this quarter. Yesterday musk announced the company may breaevk en for the Second Quarter despite the global pandemic. Just over a year ago, i was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Welcome back nearly all the biggest american banks say they performed well enough to keep dividends at current levels including jp morgan and goldman sach. Wells fargo to cut the dividend to preserve cash and the company also dealing with a stock down 52 this year and growing concern over the more than 20 billion loan obligations. Clos on its balance sheet. In a statement, saying economic recovery remains uncertain and tgs difficult to accurately predict the impact on portfolio, our economic assumptions have changed significantly since last quarter. Talking about this with marty mosby. Good to chat with you again. We have argued that wells fargo may have taken boeings place as the most important stock the biggest mourtgage holder in the u. S. Right now, wells fargo is in kind of the recovery mode. They are different than anybody else they have new management they are dealing with significant issues, regulatory issues still in overhang their focus is really how do we cure some of these issues if it takes us doing things. Thats where they are at relative to the rest of the banks out there right now. Across banks in general, we are not seeing those stocks deteriorate deferring payments and pushing that out 6 to 9 months before we end up with that Fourth Quarter. Well build up to 2020 for expected losses but not really any signs that those losses are perk lating behind the scenes until we get to later in the year sadly, im old enough to remember the year 2000, 2007 and 2008 when a few months in, a lot of the doom sayers are wrong as it is holding up it took 9 to 12 months to realize the extend of our problem. Is that where we are now do we expect things to be better or worse on the year it is not going to be worse but better the expect that a lot of things will show up as we get to the Fourth Quarter to the first half of 2021 when well be able to size up what the impact has been what will be important is whether or not we have a narrow Second Quarter we have enough monitory and fiscal stimulus we add that referral on top of that where we saw up from 2008 to 2010 in the health of the economy outside of the expectation at this point. A pleasure. Well see you again. Nice talking to you. Still on deck, china moving forward with the controversial antiprotest law well give you a live report from beijing with that return of dow futures down 1216. We are back after this you should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Will the heating up of new covid cases in the hot states end the rallies. Extra ordinarily uncertain, thats the fed chairs take on the American Economy he testifies on the hill today hong kong, 100year run as the Financial Center of asia finally coming to an end beijing passing the controversial protest law. This is tuesday, june 30, 2020 Worldwide Exchange on cnbc stock futures are down off about 96 on the down parking the rally on the dow that surge enough to put the s p and the dow in the win now all on tracks to extend the win for three. What a run it has been nasdaq capping the quarterly gains. Dont forget the small cap stocks look at the russell trying for its best quarter since 1991 up 23. 3 . Small ga caps growing bigger historic poil up 94 my math tells me that is just about a double coming from zero, it is not hard to do that that v there where we went negative 40. I know some of you love gold gold is back to the highest level since 2012 and on track for its best quarter since 2016. Up again today to 1782 per ounce. It may be summer, that does not mean the news cycle has slowed down. There are a number of big headlines to hit right now china, the communist party passing the antiprotest law that has sparked months of protest. Moving for radical changes for hong kong since the return to rule of china. And keeps the center of power between asia at risk the German Company wirecard. The company allowed to resume activities after imposing restrictions of the collapse of the uk arm back at home, powell and mnuchin will testify about the trillions of aid handed out to stem the economic fall out we have global Team Coverage on all of these stories eamon javers is outside of washington eunice, let us start with you and what they call a National Security law for hong kong thats right. This decision was either heartbreaking or necessary for the longterm prosperity of this city as was widely telegraphed, lawmakers here decided to pass the National Security law for hong kong which beijing says closes loopholes in the more open independent governing system in hong kong. A lot of activists and residents in hong kong are concerned could undermine the autonomy of the city and their freedoms. A lot of the details, we are still waiting. We are expected to see a draft and more detail later tonight. From the talks, the law will target sustain sessionist activities and looking at a max penalty of life in prison effective tomorrow with the turnover back to chinese rule. The move puts further beijing on a collision course with washington, which just overnight said it was going to halt defense exports to hong kong and essentially treat hong kong the same as Mainland China in terms of the business impact, a lot of people dont expect an Immediate Impact not on the mechanics of getting things done but they are worried on what this could mean in terms of tangibles what this means for the make up of who they could hire and not hire in the city a lot of questions being brought up with this decision. The big question is what happens to the 1,300 or so American Companies that have significant or some presence there. Is there a capital flight. Do we see more Companies Move to a place like singapore if you havent been there, it is really hard to overstate the fact that hong kong literally speak a different language, they feel very disconnected from beijing. One wonders if well see Goldman Sachs or others say it is time to look for a different place for our asian headquarters it is funny you mention goldman sach, i speaking to some people who said, we wouldnt expect to see a wholesale move but Financial Firms and research is really important. What we might see is goldman sach deciding, hey, i need to expand in asia but not in hong kong, maybe ill expand in tokyo because i need to have more business there you start to see a change or shift in the way businesses are run here and which areas are a priority a lot of sweeping changes could come thank you. To the growing scandal involving German Payment Company wirecard taking new regulation actions. Joining us now, many here or there are calling europes enron. Yeah, i think they are right. On a slightly smaller scale, brian. Very good to speak to you. You said something earlier you said the oil markets, it is not hard to have a 90 when you come from zero wired kardashian is up 99 theyve come from virtually zero as well. This was a company that was zero in 2002. A struggling German Company. Over the next 16 years gets into the dax with a valuation of 24 billion euros. August 2018 despite concerns of where the profits are coming, it becomes a company with aspirations to become a paypal then the doubts continue some short terms out there and journalists were really pressing this we dont understand where the profits are coming fra gradually having got itself into the dax with this enormous 191 billion euro valuation they are trading at 6 euros now. The decline has happened the real snow balling happened literally in the last 10 days. One, they admit that 2. 1 billion actually probably doesnt exist. Braun resigns and then is arrested then files for insolvency. Is it a situation . What about the regulators and auditors many questions i feel like with enron, well said it may be a bit smaller but auditors ernst and young, more attention on them as well. How do you essentially miss a couple of billion dollars. This is not 20 years ago with enron. The controls, the digital tracing. It should be much more easy to understand the flow of money and there are billions missing real question about if this 2 billion was in the banks, why didnt they as a audit three years, apparently, they missed just checking basic stuff like a bank statement. Perhaps just as bad as the crime by barfin, the german regulator. When the questions were made over the last couple of years about does this money exist, what do they do . They ban short sellers and the people that actually got this and invest gate the Financial Times journalists the auditors doesnt look great, does it . I tell you what, the regulators and company calling on a ban going after journalist history tells us that is probably not a stock you want to be in. Thank you. To watch, testifying before Congress Facing questions and the federal governments response due to the coronavirus. More on what we can expect from that testimony from capitol hill eamon, good morning. It is going to by a highprofile moment as both the treasury secretary and fed chair testify before congress and answer questions from lawmakers about how they handled the economic fallout what you will see today are two starkly different sets of testimony about the same set of facts. Start with mnuchin, hes going to talk about the successes and the trump leadership here and will say this, americas economy continues to recover, the jobs report vastly exceeded expectations with a record gain of 2. 5 million jobs after experts had predicted a loss of 8 million. Jay powell, his testimony about the same situation, different tone here. He will say, we meet as the pandemic continues to cause hardship he says this reversal of economic fortune has caused a level of pain that is hard to capture in words as lives are up ended amid great uncertainty about the future treasury secretary mnuchin will talk a little bit about the idea of a phase four stimulus and what else could they could do to support the economy. Hes going to take a wait and see approach and begin to have conversations but his comments will reflect what she see about how Everything Else will play out. Anybody else remember all the back and forth against the now seemingly quaint 920 billion Stimulus Program under president obama. Now we are talking about phase four and 10 trillion. Enormous amount of money. Will they actually be in person no. We believe jay powell will testify on camera. Im not sure about mnuchin ill have to double check that for you. If in person, ill sure theyll be masked up eam eamon javers, thank you, buddy coming up, when will the cruise lines cruise again. Is it possible well see no shipped take to sea this year. Why the group has become a traders favorite. Women Worldwide Exchange is back after this. Sflush. Welcome back malls, boycotts and big oil. Looking at big stocks that could make big moves today lets start with shares of Simon Property up 5 adding to yesterdays big gains. Announcing 1. 30 share and says more than 18,000 stores have reopened we are also watching shares of facebook amid the growing ad boycott. Lulu lemon and more in talks about the future of ads after pulling out over the weekend we believe we all own a responsibility creating an inclusive society. We agree to use our brand ond our choice to bring about change we are starting to the campaign and look for change on their part to determine moving forward. This as the companys backing off social Media Advertising grows by dozens. Ford, conagra, best buy, adidas and more adding to the list. Shell will writedown up to 22 billion. Expecting a 40 drop in fuel sales in the period. The latest sign of hard hard the company has been hit by the pandemic i want to bring you in as well on the next guest all about your sector you cover, travel and leisure growing worry that some cruises despite being booked up may not leave port this year especially as indications surge in port states like florida and texas. Is there a risk that no more cruise ships will leave ports with pass evenings on them in 2020 it is a possibility there are two paths theyve been talking. Theyve been announcing these successful launch dates and that got pushed from the end of july to midseptember but those are for all intents and purposes, place holders at this point a lot needs to happen between now and these ships setting sail amid the spikes in arizona, california and florida being based on them being inside it is so hot, they are cranking the ac cruise lines do appear to be floating barsand restaurants the same things being reshut down now is there any way possible to socially distance on a cruise ship other than pulling out a sleeping bag and going to sleep on the lido deck outside i think they are working towards that very question whenever they open back up, it is going to be a look and feel for these cruise ships that is probably safe to say, there will be a capacity limit. Maybe 50 of normal capacity theyll be spreading people out from room to room and also safe to say theyll be using their largest ships to accomplish that with lower break even points they need to have a ship 30 full to generate a profit. The largest, newest ships have the most public space per passenger which would also help. Seema, what are the ceos saying unlike airlines, there is a lot of entertainment value attached from parades to shows to zip lining. Im curious as the cruise lines detail their path forward whether those activities will be embraced by the cruise lines and if theyll be allowed to offer those and if the ultimate appeal of cruising changes and diminishes the value if you look at pricing and bookings for 2021, you are starting to see an up tick but still at low values. I thinks that right it doesnt appear to be a demand issue it will be a regular torry run. When they are ready to open these ships up it will seem there are many consumers ready to return to the ship. Cruise lines would and maybe right fully so be pretty far to the back of the line in terms of activities that they would like to return to not to be anecdotal, my parents were scheduled for a cruise in may for their 50th anniversary. They rebuked for october they said the ship sold out, we better jump in soon. I found surprising you mentioned the regulatory word does the u. S. Government have the power to force them to not sale or could they say we are shipping off no matter what you say . The cdc has significant amount of power with respect to letting these ships resume operations that is ultimately not the only governing body but the single most important as they have the power to prevent the ports from allowing these ships to set sail it is not the only hurdle they need to pass for us to get back to normal, you have to have all the various countries and the ports come to agreements with the cruise lines the worst scenario being stranded at sea. We saw that earlier this year. That is a real fear factor we have to get to the point where ports, even if there are cases on board are willing to let those ships port at their docks. That is a major issue. I have to let it go there i have a coffee mug that says a man is never lost at sea i still dont know what that means but i guess a person can be stuck at sea. Appreciate it very much. If anybody knows what that means, let me know what has been one of the best quarters ever in stocks. Up nearly 300 did you own, do you own that stock. Coming up, you can watch or listen live or on the go on the cnbc app we are back after this. Welcome back, the rbi is back maybe the most random but interesting thing, we know it has been a second Strong Quarter rebound for stocks 21 stocks have doubled since april 1. As we head to break, we showed you the mystery chart of the date stock up 2. 4 this quarter that name, the Online Furniture and Goods Company wayfair. Everyone shopping for home and perhaps buying a lot of homemade masks. Up 285 in 90 days also seeing big gains in this quarter. Tremendously beaten up oil and gas stocks price of oil has nearly doubled. Way fair and 16 others have more than doubled this quarter. Congrats to them and their stockholders thank you for joining us, you are the Global Market strategist where do you see in your team seeing most opportunity right now . I think the most opportunity continues to be in the lark Company Growth Companies Globally there was a lot of excitement that the breath of the market was starting to expand in the early parts of the market. Well get there. I suspect well get there as we progress this year to next right now, there is a churn in the market it is sort of way ward as we digest new cases in a time for companies benefit. This will transition back to the widening but not likely to be in the near term . Does that mean well show the small caps a lot of things recover in this quarter as a result of improving activity in order to own things like small caps, cyclical, deep value, you have to accelerate the economic activity. Higher inflation rates up a bit. Where we can do well in a certain environment that is likely to persist for a bit of time here. Sometimes we over think ourselves in this job and if you try to come up with these crazy questions. The question i get of people i meet on the street, fully masked up of course, is hey, should i sell stocks because the markets have come back so much and i held on and it is basically back to even and go back to cash. Thats it. Thats the question. It is very difficult to know when to rerisk back to portfolio. When you look back, it is very, very challenging to do im going to take a little optimistic angel as i try to emerge because ha will be on the side thf is the policy firm as many of us can imagine that is what we had in the aftermath of 2008. As we set up the next cycle, the growth isnt set up to please anyone the Financial Markets do well because the policy is enough to support corporate earnings investors are surprised. But long term equities and credit over treasuries well said, Global Market strategist well see you again. Appreciate that. That does it for us already on Worldwide Exchange. Dow futures are down 60. Sseyve recovered half of their loesyou are welcome. See you tomorrow squawk box is next have a great day now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Good morning dow futures pointing to and a prepare. The treasury secretary meantime, more governors rolling back the reopening well tell you about the new announcements from arizona, becky, new jersey. No thursday night dinner inside. And new york and china passing a controversial National Security law for hong kong. The u. S. Has already begun reversing the Hong Kong Special status tuesday, june 30, 2020 and there is a line at the food truck outside the studio right now squawk box begins right now im becky quick wit
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