Supports the doj request to unseal the warrant it is friday, august 12th, 2022 you are watching Worldwide Exchange on cnbc. Very good morning to you im wilfred frost in for Brian Sullivan today lets get right to the markets and futures pointing to a very healthy open up about 0. 5 on the dow more than that for the s p. 6 . 7 for the nasdaq it has been steadily improving and it comes off the back of the day yesterday where we started well and faded at close. The s p and dow were flat. As we stabnd for the week, nasda is up 1 it will be the fourth positive week in a row of gains for the dow and s p. Remarkable turn following the start of the year for most of the quarter and half of the year all sectors are positive this week energy is the best performing up about 6. 3 so far for the week lets look at what have we got coming up next on the markets. Next chart there it is. S p so far for the year. Lets move on to whatever is next on the list guys we are looking now at financials as well as the energy performance. Moving on to the action so far today and the treasury yields. There we go. 10year treasury is 2. 875 the german 10year touched 1 today. Overseas asian markets. We see the nikkei jump in particular today having been closed yesterday at 2. 6 otherwise, markets are flat today. Similar for the week in terms of the shanghai market and nikkei up 1. 3 . Hong kong is flat for the week there is the picture in europe similar to the u. S. Futures. Up. 50 in europe. Looking at 1. 5 of gains for the week as a whole if things hold about here and uk gdp number came in at a decline of 0. 1 of the Second Quarter that is better than expected which was 0. 3 decline of course, in the red and raising questions whether we will be in recession after the next quarter here, i believe, two quarters of growth in a row, qualifies as recession. Maybe there will be debate as it materializes it looks likely it will materialize late ther this year. The dollar coming in down 1. 5 this week a little bit of Dollar Strength on a soft week for the dollar. Energy prices as well. Very strong this week. Up 2. 6 yesterday. Oil up 6 for the week energy is the best performing sector on the s p. It is softer giving up a fraction of gains yesterday. 94 for wti. Lets move on to the other top stories and joining us is Courtney Reagan. Wil, good to see you. Shares of riveian trading lower. Investors are really focusing on the guidance ev maker is trimming the financial outlook. Investors would expect a wider loss than previously forecast. Rivian shares higher in the early going. Johnson johnson will stop selling talc based baby poured in 2023. They ended the sales two years ago follow thousands of lawsuits there are 38,000 legal filings claiming the talc caused cancer. Johnson johnson maintains testing and approvals show it to be safe. The company will move to a corn based baby powder. The wall street journal says regular late regulators are looking into the firm after the meme stock rally. Melvin capital said it would return the money and wind down the funds. It looks like the story is far from over. Back to you. Far from over terrible peraformance Courtney Reagan, thank you. Stocks look to close out the week s p and nasdaq on track for the fourth straight week of gains. Longest weekly win streak since november of 2021 joining me now is vance howard of Howard Capital management good to see you. Thank you for joining me this morning. The question he is what have you made of yesterday . Futures are making light of the intraday decline and pointing higher do you think the bounce as we had the last three or four weeks of gains can continue . I think you are setting up for a 2 to 4 pull back pull backs are buyable now the trend turned positive three weeks ago which is our trend indicator. We started taking positions. We were heavy in cash the First Six Months of the year we are starting to buy again we see opportunities we picked up great deals i wouldnt be concerned about it pull backs are buyable now the caution is warranted optimism is starting to pick its head up again. We had a lousy six months. Things are picking up. I think people should get more optimistic the last half of the year does inflation need to have peaked for that position to hold what if we have another bad print expected to come i think that is the bigger question were all worried about, too is this the top of inflation starting to roll over . We had a good number that helped the market a bit there is alwaysi something to worry about. You know, we are starting to see it turn. You see a lot of opportunity a lot of investors should play through etf. Dont look at individual stocks right here, although we are to a certain degree tech is stronger growth is picking up we had a rough First Six Months. The qqq and mgk etf is a great way to play this you can be fast and fluid and scale in and out you have opportunities to make money on the turns. What about looking at bonds do you think they are buyable at this level you know, we were almost 100 in the fixed income in cash up until three weeks ago. We started buying high yields. Hgy through the etf. Another thing people are looking at in the fixed income space is the convertible bond etf it is liquid and fluid if it starts not, you can sell and move to Something Else this is the first time we have seen the bond market turn north meaning it is a viable rally we added to positions in the fixed Income Portfolio there could be a mini pull back, but you buy any pull back from here . What would make you think we will retest the lows i think the lows are set. I think the bottom was set in july and june. You never know one thing you mentioned was the word of recession. Thats a nasty word in our business thats one thing we are looking out for is recession and how that impacts the market. I think you will have to be fluid. You have to be nimble and take opportunities when they present themselves there will be opportunities in sector rotation. The index itself and s p may be down 13 as of today, but sectors are down more than that. If you can get a good sector rotation system moving from bib biotech to health care and other systems, there is a lot of opportunity moving from sector to sector. Thats the way to play the market and make money on the sector rotation. Vance howard, thank you so much much appreciated futures pointing to positive open to. 50 to the breaking news former President Trump says he will not oppose the attorney general garlands request to unseal the search warrant over the search of the maralago estate on monday Nbcs Jay Gray joins us from washington now with the latest jay, whats the timeline a lot of unfolding. We should learn more this afternoon. The week started with the unprecedented fbi search of the florida home next is a deposition in an unrelated civil investigation. Now in hours, we are set to learn a lot more as we talk about what former president calls a raid at maralago with the rhetoric and threats surrounding that situation continuing to intensify. Reporter attorney general Merrick Garland ratcheting up the legal presentsure on former President Trump. Un unsealing a search warrant. Surrounding the Public Interest in the matter reporter mr. Trump acknowledging online overnight he wont block the release of the information. The action by garland coming after days of baseless speculation and unfounded accusations from the former president s allies i will not stand by siy siley when they are unfairly attacked. It doesnt sound like you are pro cop. It sounds like prope coup. Reporter a subject in cincinnati attack aed the suspect died after a shootout with police he was at the capitol on january 6th. Following the search at maralago posted on social media about his desire to kill fbi agents and urging others to be ready for combat. Also this morning, there are reports the identity of the judge who signed the search warrant along with his home address and names of family members have been posted alongside messages about violence on social media wil, we should learn more this afternoon. We certainly should jay gray, thank you so much for the up died. When we come back on Worldwide Exchange the consumer in focus with the worlds biggest retailers prepare to report quarterly results. As we head to break, check out the biggest premarket winners and losers stay tune to a very busy hour of Worldwide Exchange. Welcome back to Worldwide Exchange. With big tech and media in the rearview mirror, investors are turning attention to the slate of retail results among the top issues in focus are inflation and the search for the dollar. Courtney reagan is back. Next week is big for retailers. Investors want to know if inflation is pinching Consumer Spend and where and how re retailers are doing with the cost the doing business. Walmart reports on tuesday the first for the new cfo after the profit warning for first time in eight years. Walmart is saying consumers are buying less and spending more on lower margin food. Put together, it is pushing sales higher than expected, but profit lower as a dow, what the retailer has to say how the Quarter Ended will likely influence broader markets. Target reports wednesday it issued a warning in the quarter it was discounting more than planned to clear excess inventory to respond to changing consumer buying patterns like others, target has seen an uptick in shoppers returns to sc stores is there a sign that inflation peaking . Home depot and lowes will get a look at the american homeowner as the Mortgage Rates rise is the remodelling cycle softening . Fears that do it yourself and outdoor inventory and hot, dry customer is a bigger risk for lowes and home depot. It warns about the weak results from sherwin williams. Kohls and foot locker reports next week. Wil, we will see what the executives have to say about how consumers are spending back to you. It will be busy indeed, court. As you said, the expectations were lowered significantly with walmart which warned on profits. Did we learn anything since then from the tech related retailers like amazon and etsy it is interesting, wil. Every Company Almost is telling a different story. It depends on who you ask what the consumer is buying and what they are spending and that is difficult from any Company Really that sells anything to consumers. Some are managing it better than others i think the message so far frankly has been mixed we are really interested to hear from walmart because they are on broad and so large what they have to say influences markets. They did not give us a ton of details. It wasnt surprising because it did come after target. We compare the two, but remember, half of what walmart sells is grocery knowing food Price Inflation is so impactful for the american consumer, particularly the lower scale income consumer. There is more in the details we need to know. We look forward to you diving into the details next week courtney, thank you so much. Still on deck on Worldwide Exchange the biotech getting slammed 17 after the ceo warns of trouble ahead we will reveal coming up you are watching worldwe chgeonnbc. Id only at vanguard youre more than just an investor youre an owner. That means that your priorities are ours too. Our interactive tools and advice can help you build a future for the ones you love. Thats the value of ownership. When tired, achy feet make your whole body want to stop, its dr. Scholls time. Our insoles are designed with unique massaging gel waves, for allday comfort and energy. Find your relief in store or online. Mornings are our time, and i couldnt let stiff joints slow me down. So i started taking osteo biflex every day because it has joint shield. Clinically shown to improve joint comfort within 7 days. Osteo biflex available at your local retailer and club. Welcome back good morning once again. Time for the big money movers. First up, posh mark reporting a wider Second Quarter loss driven mostly by higher spending on marketing and research and development. Revenue topping the companys forecast, but posh mark revenue guide is short of estimates. Down a little bit in the premarket by 1 and next up is illumina. Revenue fell short of expectations the ceo citing challenges and expects the slowdown to be temporary. That said, the stock down sharply 15 in the premarket. Stock three is toast the maker of Payment Systems for restaurants. Revenue beat forecast and raising earnings outlook for the full year and it jumped 20 in the premarket today as can see from the chart, it is still down 40 year to date. Lets get a check on the other headlines with nbcs phillip mena in new york wil, good morning the cdc loose evning the guidele days before the children return to the classroom no longer recommending being quarantine d regardless of vaccination status it recommends wearing a mask for ten days and getting tested on day five the Health Agency eliminated the recommendation to test children to stay in school after exposure a sad update overnight actress anne heche is not expected to survive according to her representative the Award Winning actress suffered a brain injury after crashing her car into the Los Angeles Home a week ago. Heche is being kept on life support to see if her organs are viable for donation. Investigators revealed the presence of drugs in her system. She rose in the 90s to fame her family said she will be remembered for her honesty. We had a pair of preseason games in the nfl malik willis found the end zone with his feet, but the ravens closed out the half. Baltimore tacked on a few field goals and won 2310. And the patriots scored late to take the lead against the giants, but like super bowl xlii, new york would march down the field for the game winner. Graham gano hit the field goal as time expired. 2321 win. Wil, back to you thank you for that, phillip appreciate it. Still to come, the house expected to pass the Inflation Reduction Act today. What politicians are saying and what investors need to know. If you havent already, you can follow us on our podcast check us out where you get your podcasts futures are up by. 50 right now. You ride the line between numbers and people. Whats right for the business and whats best for everyone who depends on it. Solving todays challenges while creating future opportunities. It takes balance. Cla cpas, consultants, and wealth advisors. Well get you there. Good morning welcome to the final trading day of the week as the bulls try to charge into the weekend. The house is expected to follow the Senate Democrats and pass the Inflation Reduction Act. Well talk about what it means for your money and rivian shares trimming the full year guidance that story coming up it is friday, august 12th, 2022. You are watching Worldwide Exchange on cnbc. Welcome back im wilfred frost in for Brian Sullivan this morning. It is 5 30 a. M. On wall street futures pointing higher today. About. 50 higher. Yesterday, we did lose steam with the nasdaq closing down 0. 6 s p and dow finished the day flat all three indices are nicely higher as i said, 150 points or so on the dow. All three of them. 50 higher in the premarket we he come into the final trading day of the week higher for the week the dow and s p 1. 5 for the week for the day we are looking at the fourth positive week in a row for the dow and s p. Treasury yields remain inverted on the yield curve. 10year treasury at 2. 9 yesterday. It is 2. 88 just below that level. The german 10year crossed above 1 this morning. Overseas markets the nikkei with a decent jump. It was closed yesterday. It is playing catch up the shanghai and nikkei up 1. 3 . Not too dissimilar from u. S. Gains for the week hong kong is flat for the week european trade has been positive today. Up about. 50 for the most part adding to a week of gains. 1. 5 of gains this week for european markets you seize e green across the sc. Currencies the dollar gaining back a little bit today. Just. 20 having had a soft week down more than 1 for the week as a whole Energy Prices very strong. 2. 6 higher for wti. 6 higher for the week as a whole. Adding to a bit of a gain. In the red for wti up. 30 . Crypto is weak as the dollar softens. This morning, the price of bitcoin is giving up. 50 at 24,000. Courtney reagan has the top corporate headlines. Apple asking suppliers to make as many phones as last year building 220 million of the devices for the year apple shares have been on a run up 15 over the last three months up marginally in the early going. Shares of rivian posting a smaller than expected loss and better than forecast revenues i latest quarter they are trimming the outlook saying investors should expect a wider loss and lower capital expenses than forecast rivian is maintaining the full year guidance for delivery. In global news, samsungs jay y. Lee will receive a pardon on monday. Lee was put in prison twice for bribing the former president it will wipe the 2017 conviction from the record and he still faces a legal investigation. Wilfred. Thank you, Courtney Reagan lets get back to the breaking news overnight and busy day shaping up in washington, d. C. First, former President Trump will not oppose the unprecedented request to unseal the search warrant with regard to the raid of the maralago estate on monday garland speaking yesterday said he personally approved the search warrant and in a statement posted to social before midnight, the former president said in part, not only will i not oppose the release of documents related to the unamerican and unwarranted and unnecessary raid and breakin at my home at maralago, im going a step further by encouraging the release of the documents although they have been drawn up by radical left democrats. Also in d. C. , the house of representatives is set to pass the Inflation Reduction Act before President Biden signs the bill into law. Joining me with the implications of all of this d. C. Action is chief washington policy chief brian gardner. Good morning to you, brian thank you for joining me why dont we start on this unsealingi of the search warrant it has to go through the courts we may get an answer today depending on the courts docket. Probably next week some time in the next couple days certainly we are all waiting to see what is in there. I guess we are. The question i got relating to markets is the last week of events and whats to come is drastically changing the equation coming into the midterms i dont think so. Republicans have been highly energized to show up in november and vote this certainly adds to it. You know, i always go back to events like this and what then candidate trump said in 2015 and 2016 that he could walk down fifth avenue and shoot people and his supporters still love him. He seems to be in their high ey persecuted the base of the Republican Party will be ginned up to turn out. This adds to the fervor to get out and vote. The flip side is one question raised is the legislative successes can alter things for the other side and latest is expected today im very skeptical that the Inflation Reduction Act will have a meaningful impact at the polls in november. I think voters will go on a couple of issues on the republican side, they will turn out because of inflation which the bill doesnt really address the economy, crime, Border Security on the democratic side, you know, i think the dodd case from june could be a bigger factor than i originally thought. We have seen some hints over the last couple weeks that democrats are more energized after that Supreme Court ruling maybe that gets them out in bigger numbers than what i was previously expecting i think probably i dont think this week is a big deal in terms of november. 430 billion is a lot it feels small relative to some of the stimulus packages of recent years what might it do to the economy . Clearly theres tightening on the monetary side. It makes sense to stapmp out inflation and easing on the monetary side. Issue for the bill is it is implemented over numerous years. The Prescription Drug provisions go in starting in 2025 and 2026. They get phased in it is not an immediate impact. As an ininvestor, you look at it as the economy the provisions much the bill kick in during the out years it will not impact on the inflation issue in the shortterm really to your point, wilf, when you talk about the size of the package, it is dwarfed inside by previous covid stimulus packages the otheris the fed is the gam in town. When you are talking about a couple hundred billion dollars in fiscal spending, it doesnt occur for several years compared to the trillions on the balance sheet. No comparison. It is the fed. Not the bill brian, i wanted to treturn to former President Trump regardless of the weeks events, he didnt think former President Trump would run again because he is more fearful of losing than he wants to win. What is your take . I think that is Wishful Thinking of trump opponents within the Republican Party. I think when you look at 2024, the biggest impact of the weekend is it phrases the field. If the former president wants to run, and i suspect odds are he doze, he will freeze out the field. It will become difficult for other republicans who may want to run and pull the trigger and run. The events of this week will really gin up the trump base who now see him as a victim and that doj and fbi are not playing fair they are targeting him in ways that democratic politicians dont get targeted they are going to rally around their leader so, he may not want to be a loser, but i wonder if the ambassador is kind of proper jkting a little more than anything else. Im skeptical this changes trumps mind if anything, it could go in the opposite direction and make him more likely to run brian gardner, thank you for joining me this morning. Appreciate it. Coming up on Worldwide Exchange. Follow the money happy friday to you as well. New data on which Corporate Leaders are betting big on their stocks well have that coming up. Shares of rivian pulling back we talk to an analyst over what is next for the ev maker stay tuned you are tcngwahi Worldwide Exchange on cnbc. Dow futures are higher by 0. 4 . Want more from your vitamins . Get more with natures bounty. From the firstever triple action sleep supplement. To daily digestive support. To more Wellness Solutions every day. Get more with natures bounty. Welcome back to Worldwide Exchange. Time for the weekly buyer segment. Brian is preparing for squawk right now. He has filed this report for the wex viewers. The data comes from verity the fifth biggest buy of the week by inn sinsiders ball corp ceo buying 1 million. The first buy in 18years fourth place is parsons corp with the ceo buying 1. 45 million. And the transunion making a 1. 9 million buy. The first buy. And then civitas ceo buying 2 million in stock he is buying on strength the biggest insider buy this week and one of the biggest we have seen is also an energy company. Pipeline firm energy transfer. Founder and executive making a massive 30 million buy of the company. The share price was 11. This is another big buy for warren who is close to putting 2 billion back into the company. A stock to watch on that data loan there you go top five insider buys this week. Ball, parsons, transunion and civitas and energy transfer. The segment you only will see on cnbc sign up today. Make sure to stay tuned throughout the day on cnbc and squawk box with Brian Sullivan after this show. Brian sullivan and melissa lee this morning on squawk lets check in with the big money movers of the day. Rivian reporting a smaller than expected Second Quarter loss calling for steeper losses for the year the company citing supply chain and ongoing costs. It is sticking to the goal of the delivery of vehicles this year you can see it is a little higher in the premarket by 1 lets chat with the ev landscape with tim higgins at the wall street journal and cnbc contributor. Good morning, tim. Thank you for joining us what was the headline in the numbers . The premarket is a fraction higher a decent quarter, but disappointing guidance it is mixed people were looking for the guidance of 25,000 vehicles this year rivian and lucid and tesla growth stories and right out of the gate, if lucid is flnot growing, that will be troubling. It will be a stretch period for the second half. It is more expensive because of inflation and to get parts to the factory s is more expensive. For a startup car company, this is manufacturing hell. We have obviously seen tesla held up well all Things Considered with all that has been thrown at it what about the other ev names like rivian . Are they finding it harder with the supply chain issues or lots more ev competition from the traditional players . Are they finding it harder the supply chain is an an ia new company. Tesla shined with the parts they need and others have struggled a company like rivian, this is their first dance. Go back ten years when tesla was trying to ramp up the model s. A different time, but struggled to get parts from suppliers who maybe werent motivated to help the new guy. The nature of the auto industry. You just compound that challenge here in a period of time when there are less parts and shortages for all. Rivian is having to learn on the fly. What about the inflation reduction bill a significant boost for ev firms or ma brginal you have to assume the 7,500 credit there for them. Now they are selling vehicles that are too expensive listening to the rivian ceo yesterday, you are seeing him try to find positive he thinks the next product is the r2 lineup will hit in 2025 this will be applicable for the credits. Thats good news it is supposed to be cheaper and they are Building Supply chain for the cells based upon the u. S. Domestically. That is important. You look at the next six months or the next year and you have to imagine they are hoping to have that credit to help lower the cost of the vehicle. The initial sales, you know, those are early adopt aers and willing to pay more. You get through the orders and it is a struggle you saw that with the tesla and model 3 as they tried to get their prices down. And finally, for rivian, before we sneak a question in on tesla, is there cash position which is strong or weak . It is unique. They are burning a lot of cash they think they will have enough to bring out the new product in 2025 thats very important for them to be reiterating. The market is looking for the guidance you know, they are burning through a lot of cash. No indication you think it would stop burning in the second half. They started off with a lot of money. In the car business, it eats cash for breakfast we are out of time, tim alas, no time for a question on tesla. We will have to get you back soon tim higgins. Thank you still to come, we check in with a couple of Money Managers and get you ready for the final trading session of the week. It will be the fourth week of gains in a row for the s p welcome back. Futures pointing nicely higher dow up 180 as we stand more than. 50 of gains for all three of the major averages in the pre market joining me is jay hatfield and erin gibbs good morning to you both erin, ill come to you first what is your take if we are into a new phase of fresh bull p market you know, it is a bit of a head scratcher certainly looking at obviously the performance and i would have to say it looks like we are. When looking at whats driving this bull market is really all about Interest Rates and not about fundamentals so, thats certainly concerning. We love to have all sides confirming that we are coming into a more robust period. When you look at earnings estimates for the next four quarters as we finish up the reporting season, it is really dismal you know, we are looking at growth rates for the next two quarters cut in half you know, a really down across the board view and we are seeing expanded valuations that are higher than the fiveyear averages just how long can this sentiment last thats the concern which is how long can we keep going off expected Interest Rates to slow and potentially decline next year what about earnings season in general this past quarter . I think a lot of peoples take is less bad than it could have been do you disagree . Oh, in the actual reports, sure, its been good we had better beats. The market is looking ahead for the next 12 months im looking at guidance has changed estimates over the last six weeks and six months how has the next two quarters changed expectations and the quarters into 2023 thats what is concerning. Generally, we dont see these types of revisions for the future quarters so drastically coming down so badly while companies eeked out and done well and had good beats, when you look forward, we are looking at negative rates into 2023 actual contraction again we are looking at rates from about 10 to 5 on the s p 500 for the second half of that this year well below the inflation rate. That is the concern which is the take away of what the guidance means to us and the guidance is really depressing. In terms of valuation multiples, though, did they compress enough in the first half of the year to suggest the lows on that side of things . So for the broader markets, when you are looking at midcaps or large caps, they came down to the fiveyear average. By no means do you call them cheap. They were not a massive discount compared to historic averages or periods with higher Interest Rates. The nasdaq just briefly touched its fiveyear averages came down to an average level and now 20 higher so, you know, when you are looking at historical evaluations and an rrising intet rates, it is not the period we went into a few years ago, but by no means cheap. Finally, erin, are you adding risk to portfolios or taking profits after this bounce . Im sounding negative and hesitant i have been adding a lot of risk one of my calls was Aspen Technology i do believe as long as this is going on and as long as that positive sentiment is going, run with it. Im saying be careful because theres still a littlelttle shakiness. Make sure you have an exit strategy going in if the trend does change because this is based off treasury rates if that changes so is this trend. It is not based off fundamentals im adding as long as it is running. Certainly im telling investors to be cautious and be ready to change erin gibbs, thank you for joining us we had technical difficulties with jay apologies on that. As we go to brk, ueap. 50 squawk box is next hey dad, im almost out. I got you. Any questions, chris . All good, thanks maura there you go, one new inhaler nice did you get my refill too . Maybe [door bell] here you go, sir. Youre a lifesaver. Have a nice day. Healthier is managing all your familys prescriptions in one app. Cvs pharmacy. Healthier happens together good morning green arrows to start friday s p on track for the longest weekly streak in more than nine months rivian shares in focus cutting the outlook, but sticking by the production targets. Cdc easing the covid guidance for schools and offices this fall. It is friday, august 12th, 2022. Squawk box begins right now. Good morning welcome to squawk box here on cnbc im Brian Sullivan along with melissa lee joe and becky and andrew are out today. Melissa, good to quote see you i know. Its been a while, brian this will be a fun three hours ahead. Either that or destroy our careers in an instant. One of two things will happen. Yeah. We can choose its in our power i do miss you, melissa. Its been 22 years yeah. Tv brother and sister, i think the best analogy. Peter and jan or greg and marsha lets get to t