You know what, there has been a persistent bid as we call it underneath this market for months, despite the virus and the unemployment it is a puzzle enigma. I am trying to figure out why people keep buying i had an epiphany last night i was going over preparations for my monthly club talk this time looking at it through the lens of the election, it is only 20 days away. You know what . Of the 32 stocks we own for the trust, fully twothirds of them would do better under a biden presidency that caught me by surprise we were trying to bail out the election honestly i have been under the assumption that the market may take a hit if biden wins he wants to raise Corporate Tax and Capital Gains tax and rich people pay your own stocks. Is that good policy . I dont know given biden has been getting some incredible poll numbers the last few weeks it has become a real possibility. Many of you assumes it is bad for stocks thats what i thought or at least what i thought before my big club call rev
Million. And beyond meat, those shares are down sharply amid slowing sales, while mcdonalds launches a new plantbased product line carl well get to that later, guys first, jim, a lot to unpack with the covid cases, pfizer news, lilly news today, azar on squawk saying the timeline for a vaccine delivery is getting pretty specific now. Right look, were back in that same world and i listened to the fund manager speak on squawk, got to buy value and sell growth where were they yesterday whenle have you went from being okay to being overvalued in about a threehour session i find that when i look at some of the stocks that i like in the industrials, they have gone so far that i think now everything has to happen right and these arent going to happen righting. They are hostage to earnings Cloud Computing stocks, they have a lot of room to go down because theyre so high. When you look at faang, for instance, does it make it so alphabet is worth less the principle method of how alphabet makes i
Lower. Plus, scp is on track for its worst trading day in 12 years. The german Enterprise Software giant slashing revenue forecast of ongoing covid lock down for its business of course, the race for a cure Drugmaker Astrazeneca says its Coronavirus Vaccine triggers an immune response amongst older and younger adults carl david, well begin with that sap story, and asking if that is something european or something bigger especially for mega cap tech im struggling with the reasons for it very dismal outlook. Frankly, you could argue this stock is still too high at these prices which is substantially down 20 theyre talking about a cloud slow down. Can we understand that cloud has acsce accelerated every business when you upload an sap program in the cloud it does far less for you. There is someone who facilitates going from the private to the public you know something, i got to tell you, carl, this point stinks it does. I had the previous ceo on a coceo ms. Morgan and do you know three wee
Headwinds for the consumer and continued layoffs and Economic Uncertainty and the lack of additional stimulus from congress so can this consumer remain resilient. Pete, throw anything at the consumer and it seems like he or she will continue to spend it does seem that way its amazing mel by the way, its good to see you. When you break it down its about a couple of Different Things and stimulus is out there and by the time they get into two or just after the elections i think well start toy so more stimulus if we dont see it sooner than that, that will help, but anybody thats got ecommerce exposure and they have it on the Positive Side like target, like walmart and home depot, lowes and so many others and they have the digital side and retail is doing very, very well. If they dont, then many of those are definitely struggling and i dont know how many of those will survive and you have to have the ecommerce arm if you want to compete in this environment. Curbside pickup doesnt cut it for
Good morning, everybody. Welcome to squawk alley. Im Carl Quintanilla with jon fortt a fortt. Weve seen risk off behavior in europe we watch both covid19 developments and system husband hopes. Dohm is going to break this down to start the hour. We were down in the early parts of the session so far. Just after the opening bell. 300 point decline. You can see here were still hovering near. 75 decline for the dow and s p 500 about 1 p as it has been for the past couple months now, the nasdaq has really been the outperformer or underperformer on down days as you can see here. Continuing in that trend today 11,616 there 1. 25 declines overall take a look at the nasdaq so far, were still continuing to kind of hover near the record high levels. Not so far away from them right now. Finding some support over the last couple of months here with the nasdaq now down 1. 3 there still is a renewed focus on many of the Technology Names that are driving some of the action for instance, the momentum tr