Transcripts For CNBC Squawk On The Street 20240712 : compare

Transcripts For CNBC Squawk On The Street 20240712

It and shares of astrazeneca falling premarket, the drug maker hitting pause on its late stage Coronavirus Vaccine trial. Jim, you just tweeted coming to us in a few. Fired up about what . Fired up because i think that people have given up we had 10 correction, most of the people i heard except for jim pullsen in the previous show basically say, look, this is a dangerous its a bubble, its a bubble, its a bubble. Now, i think that anytime the market opens up big, carl, i dont like it but europe is up strong, i think that this idea that its a bubble, what is the it is the it tech is the it apple . Is it tesla . Lets take it case by case ive seen things that have come down a lot that are very interesting. Its just that im not sitting here saying this is the moment where you must buy all the zoom in the world but zoom just fell 30 zoom had a really great quarter. I had cloud strike on last night. People will say these are viciously overvalued, but they have come down and maybe this is the level you want to start. Look at the decline in amazon. Does someone think that amazon is doing poorly . David, you know that list. These stocks are not the same. They are companies that frankly their stocks have come down and maybe they shouldnt go down as much as others its not uniform. No, but look at that move up. I mean, granted we know the business at amazon is extremely strong but i could put up any number of different companies, jim, apple amongst them where we watched it go up 4 every day, tesla the same, both in front of their expected splits which have since taken place and there was nothing there, either, that necessarily supported it in terms of understanding what was better about the business. Yeah, we had analysts doing back flips to raise their price targets, but, i dont know i dont know where i mean, i listen to you. All right. If youre telling me maybe now maybe apple has bottomed after hitting what was it, 3 trillion in market value now below 2 trillion. Maybe thats enough. I dont know. Theres no called shot. We are not saying this is the bottom apple if you havent bought apple, you got the split, people sold off a a little bit of it, no value created by splits and then you got a level. You can say i never want to be in the stock market. There are so many people that say stay away from the stock market but i continue to say its the greatest wealth generator of all time, i prefer actually nonnasdaq stocks to nasdaq stocks, i prefer s p names to tech names, but, carl, i look at it and i say, do you know what, are you an idiot if you come in now or were you stupid if you came in at the top, if you bought zoom when they announced that wasnt so good, but down 30 , zoom is still expensive but i think zoom is here to stay. I encourage people to think stop it with the across the board you are a fool if you buy stocks thats something you say when youre rich and dont want other people in, carl. Yeah. Data trek this morning says the tech sector has been up 50 over 100 trading days three times 99, 2000, 2009 and 2020 three times since 99. They think this looks more like 09 but when we hear bubble thats what we are talking about, a 50 move in 100 days, does that not make sense i think that there is a bubble in a lot of tech stocks that are very hard to try to value. I had crowd strike on last night. They have the highest annual recurring revenue of any company i follow how do you value zoom which has changed the world over the period of six months i think the answer is its incredibly hard to value does that mean you default to owning fedex does that mean you end up buying tiffany after the deal broke down perhaps. Im just saying if you took something off which is what weve been advising and ive been advising, i dont know if you still want to take stuff off. Ive been recommending selling for three weeks, now we have big time people who come on air and say maybe you should get out i cant do that because i did. I cant do it now. Do you know what, now is the time no, when i was saying sell them before that was just a joke, this is for real i mean, come on. Thats like saying, do you know what, the chiefs, theyre going to win the super bowl. Well, no, you see, they won the super bowl so it doesnt really create value thursday night, by the way, against the texans. David, please, look at me because youre right there. Im looking at you, jim yes. You know i was bearish. Yes. Can i be as bearish on zoom down 30 perhaps i should be. In the end the way i look at things is if you havent bought anything maybe you dip your toe in not when its up a lot do i want people to buy apple up 3. 5 . Maybe buy a little and let it come in. I get discouraged when i hear people who have never let us in, so to speak, who think that the great unwashed who watch the show are really going to hurt themselves they got hurt on sorento and vaxart made a mistake if they bought tesla at the top but lets say lou people to try to make some money is this the right level to buy campbells soup . If theyve been in since april they certainly are doing quite well most likely. Yes, so they should take a little off i know. The broader market, yesterday was interesting because we didnt see that rotation that we had seen to a certain extent when some of the high flyers were selling off last week, there was at least then some movement into the banks. Yesterday everything, i mean, the banks were hit, oil and gas got hit very badly i think pharma sort of held up okay yeah i mean, is that a sign is that something that concerns you and or is there ever going to be a real opportunity to look at value well, thats the sign typically on day four that you begin to get a bottom, thats been the pattern this market since 1982 you will start finding stocks that will tell you what to do. Now, you know i think that oil is a perm ma short someone came out today and recommended continental resources. Do you know what, quit your job. Its okay. These stocks are wasting assets. Do you think all this money going into ev is because oil is going to be a great investment no, and theres oil, Oil Everywhere i start saying here is where it gets hard for me bristolmyers. Carl, bristolmyers is a company that is not expensive, i dont care under what guise a nine times earning stop with improving Balance Sheet and 3 yield i think thats reasonable to buy now, does someone want to keep our viewers out of bristolmyers because i would contest that thats the right thing to do i think that you want to buy bristolmyers. Im not saying you have to go buy moderna which, by the way, i am not going into the trial. After last night i rethought going into the moderna trial. Really . Yeah, i did i read about that illness. I read stat and i read the New York Times and i know its only one, but i remember david when bristolmyers bought a company and there were a couple serious adverse events, remember, dave, they wrote the company off its serious business. Youre talking about the transverse myelitis that we believe is at least what has held up the Astrazeneca Oxford trial for the moment you can see astrazeneca is performing differently than the other names that we put up there in terms of those that are developing i did go to somebody i trust on these things who knows trials extraordinarily well and the Science Behind them and this is a very rare disease, as you know, guys, 1 to 8 cases per Million People per year. I think there was a 2009 publication that said there were 37 cases possibly associated with various vaccines between 1970 and 2009. But there have been ten cases reported in association with covid19 as of the end of august soi guess the question here is if it is transverse myelitis which we are not certain it is, is it associated with either the vaccine or having gotten sars. A key thing will be to know whether this particular patient had covid19 or not. Had sars cov 2. Is that waiting a bit instead of going down to cornell and getting that moderna. Then we might know a little bit more its also possible to be associated with the vaccine and not other vaccines all vaccines apparently do use some portion or all of the spike protein, if its related to the spike protein it may be other sars cov vaccines will cause mile light tis. Its a good thing to wait and learn what we learn and what astrazeneca and oxford learn about this particular patient in this trial. Carl, when i think about this i dont think im saying dont get a vaccine. Im trying to get in that j j vaccine. I dont know what the hell happened, its up in boston. I think they are a terrific company. I am saying i dont want to be the first. Maybe i can be the second tranche. I think we have to have people take the vaccine we dont have a lot of hot spots in new york. I think a vaccine for someone my age a real good idea i care more about testing the vaccines right now we know that testing is instrumental in whats caused the decline in the number of people who have covid in the country as are masks even as the president is not necessarily the masked man he is not. But he is a lone ranger against masks. He is not the masked man, that is fair to say, jim. No. Fauci i know said that the astrazeneca news was unfortunate, that hopefully they can proceed with the trial, but he did reiterate, jim, that his timeline on either emergency use or key data is not as early perhaps as the administration has been hoping, namely late october, early november. Is it, though does it make sense to say that this news from astrazeneca does give the other players who were arguably behind in the chain of events a little bit of a head start . Yeah, but i think that the lesson of all these is when you go buy the novavaxs or when you buy a sorento youre still playing roulette here. Pfizer has come all the way back from when they thought they had good things. I prefer to go with the antivirals, but regeneron is week gilead is the weakest stock in the cramer covid index what i think is important is what does it mean for the reopening of america i think a lot of the recommendations weve seen including the airlines are a belief that were going to get vaccines in this year and maybe things are going to start looking up for spending. David, i think that if youre waiting on a vaccine, would you stick with tiffany would you stick with i dont know you know, thats were going to talk a lot about that momentarily, jim, because its obviously a story weve been covering closely and a lot of fascinating developments there listen, we are only hoping for the vaccines to be as safe and effective as possible and get them as quickly as we possibly can. I agree with you whether its antivirals they are going to potentially be a key and we have to keep an eye for those because they could change the complexion of the entire virus for many people if they are available and effective. Carl, last night i had the governor on from rhode island. They had 30 cases of covid in their five colleges in rhode island what i worry about are kids coming back and what that means. We are underestimating the second wave all of a sudden with the reopening of america and i think im waiting for the closing of colleges because the governor of rhode island called all the colleges in and said, listen, personally, we are going to go in and we are going to kick people out, we are going to do whats necessary. I dont hear that a lot of colleges i see numbers from colleges in the New York Times study that tells me look out. Your kids could be trojan horses. Keep them there. Keep them there keep them in college. Three weeks ago, guys, cases were rising in three states, currently cases are rising in 22 states even though the number of daily cases is the lowest since june you are right about the back to school dynamic, especially Higher Education thats a big deal. We will take a break lots to get to david mentioned tiffany and lvmh, street highs on peloton, theres slack at lululemon and a lot more with futures up dont go away. Everything we have, weve earned. The unmistakable lexus is. Get zero percent financing on the 2020 is 300. Experience amazing at your lexus dealer. In cashmere for nothing, i am referring to Bernard Renault who basically founded and the controlling shareholders of lvmh ive been reporting on this for seem time relating to the bending acquisition of tiffany which by all accounts or many accounts should have been very close to closing by now but it far from that. In part as ive been reporting for months now mr. Arnault has wanted a price cut it does appear that that at least according to people with his thinking is still what he would like, but hes taken an unexpected route to try to get there it would seem and one that perhaps we did not see coming even as late as yesterday because it doesnt relate to his pursuing a claim that there has been a material adverse change in tiffanys business which under the business at least would allow him to to get out of the deal it, in fact, relates to a letter received on august 31st from the French Foreign ministry dealing with the prospect of tariffs coming on luxury goods that would be imported from france to the u. S. Here is the important part of the letter and how it relates to lvmhs decision to essentially abandon this deal at this point. The American Golf has decided to implement a cuss comes duty on the import of certain french goods. You should defer the closing of the pending tiffany transaction until january 6, 2021. That would have the effect of delaying it or pushing it out past, of course, what lvmh says is the socalled drop dead date. Thats not really the case when you read the contract, in fact, either side would have to terminate or has the right to, but they dont have to after november 24th. That said, thats the way its being read tiffany, well, clearly they were ready, werent they . Because they had a lawsuit of 120 or so pages that they basically filed almost immediately. Whats interesting here, well, there is a lot of things first of all, this letter was received on august 31st. A least according to the contract and the way these things go tiffany should have been told about this letter so they could help plan what the response might be, they didnt learn about it until yesterday we havent seen the french translation of it although were told perhaps that will be forthcoming so that word should has become a key question here what does it really mean and is it going to invite response from the u. S. Government in some way the french telling, well, mr. Arnault, it wouldnt look positively on you acquiring tiffany given whats going on in this spat between us and the u. S. About potential additional customs duties on luxury goods here is what roger farrah had to say after they filed that lawsuit he is chairman of the board at tiffany, we believe lvmh will seek to use any available means in attempt to avoid closing the transaction on the agreed terms but the simple facts are that there is no basis under french law for the Foreign Affairs minister to order a company to breach a valid and binding agreement and the unilateral decision with the french government without notifying or consulting with titch knee and its counsel were a further breach of lvmhs obligations. The supposed official french effort to retaliation against the u. S. For proposed new tariffs has never been announced or discussed publicly. How could it possibly be, then, an effort to press urg the u. S. To revoke the tariffs. We are not aware of any French Company receiving such a request making it more clear that lvmh has unclean hands. Hands perhaps not even fit for a nice ring from tiffany lvmh cfo on their press call, they had one this morning, they had some technical difficulties but this is what we did get from him. He said we have a government order, he said its a valid order, with he checked, we spent a few days consulting eminent legal experts on the matter. All of them told us this is legal. They have the right to ask us to postpone the acquisition and therefore we have no other choice but to apply this decision its a valid decision, unlike what has been said where does this leave us it leaves us going to delaware to court mr. Where mr. Arnault if we get to it will have to take the stand theyve asked for expedited in delaware meaning things could move more quickly. We will have to wait and see jim, you know ive been following this arnault of course was very upset at the deterioration of tiffanys business, particularly in the u. S. And what he feels perhaps is longterm detriment to the companys prospects he wants that price cut and, man, hes able to pull a lot of strings possibly it would seem to get one. Thats what i wanted to ask you, david i dont know the french government that well, but it seems like that lvmh is an integrate part of the french government i mean, i want this deal killed so you call macron and say i need this thing scuttled, i want a better price is it crony capitalism more than we have in our country we have a president who is telling a Chinese Company were going to sell you down unless you sell it and, by the way, i want a piece of the action that said, i know, i dont know what to make of it mr. Arnault is an incredibly powerful man, some would say the most powerful man in france. Really . Yeah. So im sure that he has a lot of ability to do this you saw what the cfo said, they got this, its a response in some way from the french im not sure why now im not sure on august 31st as opposed to when we first heard about these tariffs sometime back i cant tell you about the timing they are not looking at the mac as much anymore. They have nod filed eu though im told they are going to file eu perhaps as soon as this week, but, listen, tiffany was ready, jim, for this. Theyve been waiting for it. The board says from what im hearing they are fully aligned in their believe theyre going to take it to the mat but well see. You know, mr. Arnault is nothing if not relentless and the request he is whether the tiffany board will finally say, maybe not. Maybe its not worth it. If i want jewelry i go to costco costco has got really good jewelry. And you find some blue box, you stick it in it the wife wont know the difference. Robins egg. What do you say, carl . Its true, guys yep. We will take a quick break futures in the green as we try to get back some of the last three days dont go anywhere. The lexus es. Every curve, every innovation, every feeling. A product of mastery. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. Seeing some nibbling of names that have taken it on the chin the last few days, apple up 3 premarket, not on this list, though, peloton up of, tesla up number 8 g till keep an eye on those as weethe opening bell in about five minutes some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch s

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