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Transcripts For CNBC Power Lunch 20240712

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Twitter, defending how they moderate content on their social media platforms. Some senators not buying it at all. Well bring you the latest details. Meantime, kelly. Tyler, thank you very much. Weve got all the big stories covered for you today. Bob pisani is watching this big down day for stocks. Meg is tracking the latest spikes in covid cases and ylan mui on this tech hearing on capitol hill today lets start with you, ylan reporter well, kelly, there was a lot of Political Drama during this hearing today but also an important discussion about election security. With all three ceos acknowledging that other countries are trying to interfere in our election, and theyre trying to do it on their own platforms. We do continue to see interference we recently disclosed actions we took on both russia and actions originating out of iran. We do continue to see coordinated influence operation items. Weve been very vigilant we appreciate the cooperation we get from the intelligence agencies and as companies, we are sharing information. Like jack and sundar, we continue to see attempts by iran and russia to run these Information Operations now, the companies are getting pulled in two Different Directions on this issue republicans are saying that if the platforms themselves that are doing the interfering by restricting or removing certain types of conservative content. Democrats pushing the ceos to do more to combat misinformation on their platforms. Guys, this is just an example of how explosive the Politics Around this issue have gotten. Back over to you ylan, thank you. Lets get more on todays big selloff from bob pisani. Bob, what do we know were just off the lous by just a bit germany closing bars and restaurants. France is talking about a onemonth lockdown take a look at the european markets. We closed a little over an hour ago. The word lockdown is not part of the narrative. Even if its just a partial lockdown, what do you want to call it, lockdown light maybe . Its a narrative the market is not used to. You see how its upset europe. Europe has been down for several days in a row, frankly, a lot indices down 4 , 5 , 6 . Heavy volume tech and industrials, cyclical stocks down notably. Even defensive names Like Health Care and Consumer Staples down almost the same amount that tells you people are just reducing their exposure overall. Another tell, energy here. Back to the lows we saw in march. By and large for the energy etf, the xle here you see occidental at new lows holly is at a new low. Most are just off the lows they saw in march another tell i use is just watch the reits, the Real Estate Investment trust companies, because when theyre weak, the reopening story is going low, we have new lows on a number of them boston property is a new low, sl green and vornado have been down in the last several days anything at all thats working yeah, mortgages are still great. No matter whos in office, the housing story is likely not going to change. There you go, folks. Theres your housing stocks as well as masco on the upside. With rising covid cases around the world and the election less than one week away, is volatility to stay for the next ten days or so . Laura cain and Rebecca Feltman from riverfront Investment Groups i forget, i think it was you, rebecca, who said no, maybe it was you, laura yeah, rebecca that said weve got the collision of uncertainty and high valuations, right absolutely. Thank you so much for having me. And i think that that is the Biggest Issue that weve got going on today appreciate the fact that the lockdown is a scare, but the uncertainty factor when you think about the fact that the polls have tightened, the virus cases are up, and we dont know when were going to get a stimulus regardless of how we are and certain about all those things, the one thing we can be certain about is the economy has been on a positive trend as well as the q3 earnings, by and large, have been solid. Do you worry that if covid reasserts itself, as it certainly appears to be doing right now, that some of that economic rebound may get some of that air may go out of the balloon, rebecca absolutely. We could see a slowing but we dont believe well see a stall. That is an important distinction here. How about you, laura, what do you see going on earlier when weve had some selloffs, generally technology has held up. Today not so much. Maybe because people are looking at washington and seeing a more rigorous regulatoryregime taking hold there. Maybe there are other reasons. What are you seeing today and why do you think the market is down as much as it is this week . I think whats driving the market is the trio, the rising cases combined with increased restrictions and lockdowns, particularly in europe its the fact that fiscal stimulus talks have stalled until we get past the election most likely. And we have the election coming in just less than one week so all of this is weighing on the markets. Combine that with a few earnings disappointments we got today within the tech segment. That makes for a riskoff day across the board looking forward, we believe these uncertainties will be relatively shortlived we are actually getting more cyclical in our positioning because regardless of who is going to be in the white house, we do believe that either candidate will focus on getting this economic recovery on track and that getting past the pandemic will be in focus. We also believe well have a vaccine widely available by the middle of next year. Putting it all together, we are encouraging our clients to take a bit of a longer term view as we get through the choppy period. You left off on just the point i was going to make. We have a lot of very sophisticated viewers, moss of whom are longterm investors we love to hear from traders as well laura, if you dont have the portfolio you want already this year, knowing whats happening and whats ahead, shame on you so, the question then becomes, what should i do at the margins of the portfolio i already have to profit into 2021 and protect against a Downside Risk . What should i do what should i make sure ive got . Sure. I would be adding to areas where you can get exposure to a cyclical recovery. Some of our preferred sectors within the u. S. Include consumer discretionary, industrials and financials all of those sectors give you that cyclical exposure you could also look at areas like u. S. Midcaps, which have lagged in the recovery again, have that exposure to afternoan economic recovery in the u. S you can look at certain pockets of International Stock that could benefit as this economic recovery gets under way. Keep in mind that the rebound weve seen in stocks so far has been pretty narrow mostly in the tech segment, focus on some of those digital names, some of those stayat home plays we think the next leg will be driven by the laggered im going to ask about the same actionable oriented question to you. If i have the portfolio i want and i repeat, shame on you if you dont by now, what should i be looking maybe to add for profit and maybe to add or subtract for protection . Well, great question. I agree with much of what laura said what we would also encourage is diversification, you know, appropriate to your risk tolerance and having a risk plan in place following your process, dont worry so much about the headlines but what you can accommodate from a risk standpoint having a process in place whereby you are willing to admit youre wrong and take money off the table and reposition were repositioned into growth were leaning into tech, health care, discretionary and infrastructure with industrials. Im so tired of admitting im wrong, rebecca darn it. Appreciate your help today k kelly . A big reason stocks are falling is the spike in the coronavirus. The average is 71,000 per day. Huge numbers in wisconsin. Well get a live report from the ground coming up and illinois, where chicago is putting restrictions back on bars and restaurants lets go to meg terrell for more on what were seeing in the u. S. And globally these numbers, of course, of new daily cases are record numbers for what weve seen in this country Scott Gottlieb this morning warning we could see 100,000 new daily cases as soon as this week take a look at what we are seeing across the country, according to the covid exit strategy this is a project essentially looking at a lot of different metrics from case numbers to test Positivity Rates. Theyre finding uncontrolled spread across all of those states there in red. 35 states at least seeing that metric in terms of case numbers going up and not having enough testing. So, their Positivity Rates getting very high. Now, gottlieb was saying, were about three to four weeks behind europe, potentially. Check out what cases are doing there. France really spiking. Youre seeing similar trends in the uk, spain, italy, germany, the netherlands, all heading upwards. We are seeing new restrictions being put in place germany closing bars and restaurants, other businesses in what they are calling, as bob mentioned earlier, lockdown light because its not as stringent as it was the previous time france already has much of its population under curfew but is considering stricter measures we should hear about potentially later today. Now, this as were getting news on therapeutics and vaccines eli lilly saying it struck a deal with the u. S. Government to supply 300,000 vials of its antibody drug for 350 million if it gets emergency use authorization from the fda, they say under the agreement patientses will have no outofpocket cost for the medicine wherever you get it administered, they might charge you for it so it might necessarily be free. Thats only if the fda gives the green light. Guys . Meg, weve talked a lot about whats going on in europe today, but what about here in the u. S. . Chicago is obviously being highlighted because of its size but theres a number of other places where it would seem to be the most likely candidates are those with very, very tight Hospital Capacity right now, right . Yeah. You are hearing in some of those places that they are doing things like restricting elective procedures, for example, trying to free up room in their hospitals. One thing thats so concerning, we talked last hour about pandemic fatigue among ourselves, but Health Care Workers are exhausted. There just arent enough of them once we get to the numbers where beds are getting filled up the issue is there arent enough doctors and nurses to take care of everybody naets why you hear warnings about rationing care, which is a nightmare scenario and nobody thought wed ever get here in this country. Yeah. Maybe i should look into a home birth after all, meg, what do you think . Maybe meg, i appreciate it. Meg tirrell with the latest. On the news, dr. Anthony fauci at 7 00 p. M. On cnbc a chance to ask him all of our latest questions. Coming up, well have more on the big selloff on wall street a lot of red there there are the 30 dow industrials. Only one of them, only one green stock. That is travelers. Not too many people traveling but theyre not in that business, of course. Boeing, one of the laggards after announcing more travel cuts to combat the traveling slump, that stock down 9 in the last week. Virus spears seeping into the travel space airlines, cruises, Hotels Getting slammed. Isuiow lchafr un te th qck break welcome back to power lunch. The dow is down 800 some points, nearly 900 boeing a big drag on that index after its report phil lebeau with the latest. Lets take a look at shares of boeing. Down 9 this week. Under pressure today after the Company Reported a loss of 1. 90 a share. This is a company that burned through 5 billion in cash in the Third Quarter. Is not expected to be cash flow positive until 2022. It also announced it will be cutting more jobs over the next 12 to 15 months. By the end of 2021, it will be cutting an additional 11,000 jobs thats in addition to the 19,000 its eliminating this year add it all up and the workforce will be down about 18 since the beginning of 2020. This morning on squawk on the street we talked with Ceo Dave Calhoun and we asked him, is this the last of the major job cuts im very close to being right about that i will never just draw a floor on the other hand, you know, weve got to make the adjustments that weve got to make our production rates will hit their low, the same production rates weve described previously, will hit the low midpoint next year. What about the 737 max . As weve reported and others have reported, it is close to being ungrounded by the faa. Look for that to happen likely within the next month to six weeks. They have 450 planes built but not yet delivered. Half of them are expected to be delivered next year and the other half in 2022 as you take a look at the airline stocks, theyre all under pressure today this is at the heart of the problems for boeing. The fact that the Global Airline industry as covid cases surge, tyler, you see the airlines once again under pressure as people say, okay, how much further will these guys have to go before they finally see this thing bottom out in terms of demand . Two questions first, will it be two years soon that the 737 max will have been grounded its almost two years, right march 13th, march 13th of 2019 is when is when the airplane was grounded. So, it will be two years next march. When you look at the 30,000 cumulative jobs lost at boeing into 2021, bring us up to date where the airlines stand with their job cuts and furloughs because they did not get the bailout they sought and they kept saying they were going to lay people off october 1st. Of the cuts announced starting on october 1st, youre looking at more than 32,000. Probably around somewhere around 34,000, 35,000. Its possible that as arldz look at whats going on with demand and that it remains weak, we could see more cuts added onto that as of right now again, thats at the heart of the c. A. R. E. S. Act and whether or not congress is going to give them money to keep jobs in place its about 32,000 to 35,000 jobs. These are real people with real families. We think of them as we talk the news here today. Kelly . Phil, thanks. Always. Ty, thank you. As covid continues to crush demand for travel, its not just the Airlines Getting hit see see seema mody is here. They are parsing through the new lockdowns in germany chancellor merkel calling on citizens to cancel nonessential travel and hotels will be open for essential workers and nontourism reasons you look at marriott, hilton and hyatt, they are trading down about 3 the Hotel Occupancy rate drops in europe as covid cases surge now in the low 30s in the u. S. , 50 thursday, results from Royal Caribbean where investors will be keen to hear from the ceo and bookings for cruises out of florida and December Next year, the cruise lines are down today and lower by 10 for the week. Kelly and tyler . As the outlook for them darkens, you have to wonder if more aid is going to be on the way. Right seven months of no sailing, that cdc no sail order set to expire this saturday. Theyre supposed to get that green light from health officials. But theyre still taking a cautious approach because it takes a lot of time to bring back all their crew from overseas back to the u. S so, theyre still aiming for a december 1t start date in the meantime, certainly looking for ways to raise more capital. Theyve been very successful in doing so Royal Caribbean recently raising money in the debt and equity market. Seema, thank you very much. Good point. Still ahead, check out one market bright spot General Electric having its best day in a month after reporting better than expected earnings amid the pandemic. Plus, tech ceos warn about the dangers of potentially removing section 230 that protects the social media platforms. Well bring you the latest comments right after this. To se . At morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. Before money, people tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Not today. Facebook, twitter and google are all down 5 as the ceos spoke to congress today, defending their platforms and their Business Models for more lets bring in tony rahm, a tech reporter at the washington post. Would you tie these declines to what we saw today . Twitter did sell off after that exchange with senator cruz. It might have something to do with that. To be honest, this hearing was such a political and partisan affair, i dont think most investors or folks on capitol hill or those elsewhere for that matter think any exchanges lead to immediate regulation or immediate threats for these companies. So, the reason we had this gathering today, obviously, was to look at federal laws that spare Tech Companies from being held liable for the decisions they make on the content to allow or to take down. There are some lawmakers who would like to see those laws amended. Frankly, what we got today was a fight between democrats and republicans between allegations of conservative bias, which plenty of experts say isnt real its unclear if you can tie that to the numbers were seeing today. Its certainly the case that the events that unfolded on capitol hill may not translate to any immediate action not least because the Justice Department itself and this administration, you know, some of the measures its recommending dont look like they would fundamentally change the way the 230 works in practice right now so, you cant get rid of it without destroying a Business Model of Companies Like yelp you probably keep it somewhat as is, let the companies moderate how they want to moderate, and if users dont like it, then say, thats how this you know, the vote will be conferred on their Business Models i guess my question is, because they have so much power right now, because they are so large, you know, twitter isnt all of the social media market but theres not a great alternative for twitter if you wanted to go somewhere else, for example. So, im curious, tony, if you see any competitive threats emerging that might undermine big tech Business Models here if regulation doesnt seem that likely well, in section 230 the Justice Department has asked for congress to take a look at the law and to update it to hold these companies more accountable. Whats sort of remarkable in all of this is democrats and republicans agree, actually, that probably this law has outlived its usefulness and these protections that were put in place when Tech Companies were not considered big tech, you know, maybe have outlived their usefulness its just the political theatrics that prevent them from finding compromise the question about alternatives is one thats come up in other context. We see a huge drive in washington these days around antitrust theres belief that Companies Like facebook are so large, there arent any openings for other social Media Companies to really come into existence and gain this sort of wide user base that might make them profitable and successful and so forth. From that perspective, if you believe theres a competition issue here, you know, theres maybe an argument to be made that if you dont like the content moderation policies of one company, there are few places you can turn and go elsewhere with your business but certainly there is this belief in washington that all of these things should be looked at its just unclear where we go from here. Unclear is right. Again, a tough day for big tech shareholders, though not necessarily because they heard anything here of any real concern. Tony, we appreciate it tony romm with the washington post. Thank you. Tyler, over to you. Ahead on power lunch, we will continue to follow the big selloff. The dow currently down there, what is it let me look over my shoulder 784 points as coronavirus cases threaten the globe plus, what do these renewed virus fears mean for the already struggling Restaurant Business are consumers too afraid to dine out . And the Energy Market getting crushed today. Crude down 6 . [narrator] at Southern New Hampshire university, were committed to making college more accessible by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Welcome back to power lunch. Stocks are sharply lower at this hour dow is down nearly 8030 points were just off the lows. Oil is closing firmly in the red and slipping further from the 40 a barrel level as rising coronavirus cases are heightening demand fears, along with build in america. Halliburton, holly frontier and devon among those that are down. Lets go to sue herera for the neu news headlines. The Trump Campaign said it had enough shuttle buses but blames road congestion for leaving hundreds in freezing weather waiting to get back to their cars after last nights omaha rally. A few required medical attention. Joe biden said the breakdown in planning mirrored trumps failed approach to the pandemic. In delaware biden has cast his vote joining the more than 74 Million People who have cast ballots so far that is 54 of the total vote in the 2016 election. The texans have become the latest nfl team to shut their Training Facility due to a player becoming infected with covid19 separately, the ninth ranked Wisconsin Badgers have postponed their game against nebraska this saturday a dozen people, including wisconsins head coach, have tested positive. And a White House Press release says ending the covid19 pandemic is one of the trump administrations accomplishments. A white house official says the press release was, quote, poorly worded, end quote, and said it should have said it is their goal to end the pandemic youre up to date. Ill send it back to you sue, thank you very much. Lets take a closer look at the markets this hour. As i mentioned, the dow is down nearly 800 points, a little over 900 was the session low. Weve been sitting firmly in the red for the entire session today. There was pressure while the european markets were still open the german dax down 4 the pressure continued as many pointed out, its not like we saw much of a relief after that happened the nasdaq marginally the worst performer today. Big tech, no safe haven. Even a lot of the stayathome trades no safe haven today ironically, the financials are, quote unquote, the best sector bond yields havent fallen that much thats all we can say. Lets get to Rick Santelli who can say a whole lot more about it he joins us with the latest action from the cme. Hi, rick hi, kelly i think, you know, the Financial Sector is probably keeping one eye on the treasury complex because youre exactly correct look at one week of tens certainly weve had drops. We went from the mid80s on closing yield basis to blow the mid70s. But wedidnt close there look at a 24hour chart of tens. Lateral. Were basically unchanged on the day. As a matter of fact, if you look at a 30year bond right now, its up a basis point on the day, but we cant say quite that much for the bunds overseas. Definitely europe is getting a lot more press regarding the pressures to their economy and currency look at a monthtodate chart of bunds and realize we are just a half a basis point away on their close from closing at the lowest yield since march. As you can see on that chart, tie goes to the runner its hovering around its previous october 19th yield close. Heres a chart where you can see raets going on one month of their currency versus the stock market, the dax. The dax has just been dropping like an anvil. You can see it really has affected the currency. As a matter of fact, if you look at the dow index, its certainly up but its a weak euro dollar to yen, all these safe harbor trades are not doing especially aggressive trading today. I think one of the other reasons is, tomorrow not only we have initial continuing claims, we have our first look at Third Quarter gdp. I think it may come in stronger than expected. Rick, thank you very much that gdp number will be very interesting to see Brian Sullivan hitting the road to visit some of the major battleground states ahead of the election today hes in kenosha, wisconsin, a state brian knows very well. It could be the most important county in the most important state. Hi, bri. Reporter hey, ty yes, certainly was by the way, nobody around me in the Central Business district. Well tell you why in a minute obviously, a lot of damage done and just in the process of rebuilding if someone comes around, ill throw the mask on. Heres the thing, in 2016 donald trump won Kenosha County by 255 votes. Thats it. And that really helped flip wisconsin, which helped flip that socalled blue wall in 2016, delivering michigan, pennsylvania and wisconsin as well will that hold true . Well, right now the polls certainly are not showing that joe biden up anywhere from 2 to 9 points depending on what poll youre looking at here a couple months ago, ty, covid really wasnt a thing. I spent a lot of time here in the summer people werent talking about it much they didnt know what we had been through in the northeast. In some cases maybe didnt believe it a totally different story now. Cases are on the rise. Fourth highest Positivity Rate in the country of any state. You just heard sue talk about the coach of the university of wisconsin Football Team as well. In fact, 83 of all people in wisconsin surveyed now know somebody who has had it or dealt with covid or coronavirus, up from 30 a couple months ago and, indeed, covid has now surpassed the economy as the most important issue for the voters so, four years ago, maybe it was the bring jobs back, bring manufacturing back remember, we showed you foxcon earlier today. Trump with a big promise 13,000 jobs, 12 million square feet none of that has been done the economy is important to Kenosha County but covid right now is the number one topic as wisconsin has a bigtime spike i know youll be able to process. Number one, we showed a map a few moments ago. I am assuming that bidens strong areas are in and around milwaukee and in and around madison. Basically the rural parts of the state tend to vote red thats number one. Fill me in on that number two, talk to us a little bit about the social protests and unrest that took place earlier this year in kenosha with some deaths. Reporter yeah, theres a lot going on kenosha and wisconsin are dealing with so much right now listen, to your first point here, like many states, tyler, what weve tried to highlight, how weve identified where were going on this road trip is we in most states, most counties are decided. Theyll be so far one way or the other, theyre not really a battleground theres only a couple counties in every battleground state that might move the needle. This one, neighboring racine county, maybe a couple others that are on the fence. As i said, trump won by 255 points thats how we identified where were going. As far as what youre talking about, listen, kenosha, theres a lot of damage here but also a lot of optimism. These are tough people who have dealt with tough things. Not just this year, their whole lives. Theyre very optimistic about the future, despite what theyve gone through we had a chance to speak with the owner of lou perrines, a bastion of the community, they serve low income folks and people passing through as well we talked to him and hes been here through the whole thing he said, without being political, it is a scary time right now on many levels ive never been more stressed in our lives ive owned the business ten years. My dad has been here 50 years. Between the two of us, weve never seen anything like it. Working harder for less. Trying to keep employees happy, take care of our team. And were just dealing with a massive unknown. Its really, really scary, to be quite honest because we just dont know what tomorrows going to bring reporter i asked him what message he would want to send to either candidate he said, think about Small Businesses like us we serve the community and we need help. They noticed an uptick in spending after the stimulus was passed hes urging them to do it again because the community is suffering so much here, trying to rebuild kenosha, you can see it here, kenosha strong, be the sunshine. Theyre going to try to rebuild. They will. Like i said, this is an area thats dealt with an economy that has suffered, youve got unrest, covid spiking as well. As they call it ktown, ultimately, whatever happens in the election, i know these folks in ktown will rise. I promise you that. Brian sullivan, thank you very much. Kelly . Its a rough week for wall street that continues with the dow adding about 800 points to a selloff we already saw monday and tuesday. A whole lot more in the markets including some of todays biggest movers and the companies s. Ying to go public during thi thats coming up next on power lunch. Or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Some things are good to know. Like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. Something else thats good to know . If you have medicare and medicaid, you may be able to get more Healthcare Benefits through a humana Medicare Advantage plan. Call the number on your screen now and speak to a licensed humana sales agent to see if you qualify. Learn about plans that could give you more Healthcare Benefits than you have today. 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It will close 200 stores, remodel 450 more and resume share buybacks the shares are down 12 . General electric is a bright spot on this down day, posting a profit on an adjusted basis. Analysts were expecting a loss ge was able to offset loss in aviation and up 11 . Amazing to see General Electric at 7 a share. Companies try to pick the best time to go public but sometimes you go public in the middle of a major market selloff. Leslie picker with a number that are expected to go tonight. Ipos can live or die based on the market environment this market environment is not ideal but its the backdrop for a slew of ipos looking to get out before the election. Leslies, no relation to me, is a pool supply retailer and expected to post a 600 million deal tonight and two mortgage lenders, caliber home and amerihome. Timing for those dye deals could change due to todays selloff and theres no indication at this time they will change however, recent ipos also trading lower today. Take a look at that. Thats the top five biggest deals of 202 we took a look at the top ten. All are in the red today those include snowflake, royal music, good rx, the renaissance itf, a compilation of recent deals, also down today as the selloff continues. Why is this a potential headwind for these newer deals coming to market it means investors who tend to invest in ipos are sitting on lower gains, or in some cases, bigger on paper losses than they had last week. That make make them less inclined to take on more risk and buy new issuance guys all right so, we got a lot of things coming out now would you expect that pipeline to keep pumping them out towards the end of the year or might, if the market gets some chop, those things get pulled back thats the irony of what were seeing this week is the mindset, according to advisers that i speak with, is were seeing this kind of onslaught of deals this week as theyre trying to really get out before the election that was their goal. Because as weve heard for weeks and weeks, there could be some choppiness in the weeks that follow the election. So, i think a lot of companies are going through the s. E. C. Process. Theyre going to wait and see how the election unfolds and what the Market Reaction to that is if it does go on for weeks and weeks, even months throughout the end of the year, we may see some deals get pushed back because they dont want to go out in an uncertain environment. If its a pretty clean election, we could see the likes of airbnb and others that would debut, at least thats what theyre hoping to do later this year. Leslie, thank you very much lets switch over to restaurants. Theyre trying to learn how to deal with this new normal and now chicago is having to roll back its reopening if other cities have to reinstitute restrictions, how bad could it get again for the industry and has tech as tech ceos face the heat on congress, the nasdaq down 3 were watching the numbers very closely for you. Welcome back shares of brinker international, thats welcome back down about 2, 3 today, posted a surprise profit. Sales fell only 6 from last year thats when the Quarter Ended september 23rd things have changed a lot in the past month and even in the past week lets go to kate rogers with the latest on restaurant sales kate kelly, while we are in a better place than we were at the height of the pandemic, theres still a ways to go here. Coming off of the worst week since mid september, sales and traffic dropped again for the week ended october 18th according to black Box Intelligence sales fell by 7. 6 , traffic down by 13 pound. 6 . Average on spending for gas has slowed down particularly in Quick Service and casual this had remained strong ooefr even without additional stimulus in recent weeks. There are some bright spots, though mcdonalds for sales update was a bit better than expected in the u. S. Recent franchisee survey found out theres pentup demand, and that mom and pops shop closing is sending business to the drivethroughs dunkin executives said consumers are treating themselves more to things if they cant make it home, disrupting those morning routines whats good for chains, of course, isnt always great for independent restaurants, which continue to struggle without additional aid from d. C. Well hear much more tomorrow from starbucks tomorrow. Restaurants one of the hardest hit if we start seeing measures like what chicago just did. Chains who can do delivery if they have User Technology has been okay but this still has to be a wig blow for them. Certainly, kelly. Restaurant brands to cater to new Consumer Habits. What weve learned is that these new Consumer Habits will likely stay with us even after this and the independent chains will continue to get hurt. Yep kate, thank you. Kate rogers with the latest on the restaurant space for us. Ty thank you, kelly. Stocks are selling off for the Third Straight day this week the key level to watch, heading into this final hour of trading. Dont forget, you can always watch or listen to us live on the go on the cnbc app we will be right back. I have an idea for a trade. Oh yeah, you going to place it . Not until im sure. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. United states cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. Stocks are sinking today. Check out some of the stocks hitting 52week lows we havent seen things like this in a while includes wells fargo, biogen, gilead not that big but still significant that theyre now at 52 week lows, ty. Absolutely. Lets take a look at the dow and s p. Theyre nearing correction territory, folks, 10 off their 52week high how much more selling can we expect with us to predict is tim seymour of seymour management and cnbc contributor welcome, tim is a correction in sight look, weve had three 10 moves, two up, one down. About to be our second if we get to 3200, youre there. I think 3200 is a very important number for folks who watch charts and that would be in kind of the top whats scary about today is if you look at the last time we traded we closed where we are today, right now on the s p, we would be through the 100day moving average to the down side which we havent traded through to the downside since february 25th on our way down to a pretty scary place for the s p. So, it is look, is it a foregone conclusion were going to get to 3200 no but i think there are some key levels here. As we go into the rest of the week, a day like thursday, weve all been talking about earnings and certainly the prospect of 17 of the s p reporting on thursday but this is a group that jumped the shark last quarter and i think the comps and the expectations are very, very high here meanwhile, amazon may be double. Thats the bear case im happy to give you the bull side of this, because i think weve been here before. Another 100point down day for the s p 500 would put it into correction territory as you point out. You have seen positive action in emerging markets, though youre skeptical that they can keep it going if there is a major sellof selloff. Theres a lot of reasons including intells problems, but semi conductors we need to watch. Whether its around whatsapp or some of the u. S. china trade dynamics are very important. Alibaba, if you look at the ant financial ipo this week, the biggest of all time, and that evaluation is very good. The dollar, your mediumterm outlook or through elections and scenarios that would include a lot more blue in the senate and in the white house would certainly be good for em not only reset for china, but what it might do for the dollar, and the dollar has to be your friend on the downside. But em has outperformed. I think if we are in washout territory dont run to em for safety its proven thats just not the trade. Talk to us about the dollar, tim. And as we watch it, what should we look for . And what might its moves imply i thought you said talk about your dodgers last night, ty. Anyway, lets talk about the dollar when we have these liquidation moments theyre right to point that out there are fiscal dynamics, which could put the dollar in play to move lower the dollar has been in a range roughly 92ish and 100 in recent memory over the last five years, were cap to the upside around 100, good to the dxy. We have to at least watch the dollar right now flight to quality would be very negative for equities, not only for that reason but because the dollars move and its strength there. And the weaker dollar has had a lot to do with the bullish market in equities, i would say, since over the summer. I dont know whether well see you at 5 00 tim, but if youre there, great. If not, well see you there. Well be watching. Ill be there. Great to have you thanks, tim. Kelly . Lets do a quick check on the markets, tyler, still seeing the dow down 783 points. With all the concern approximate coronavirus, zoom still down more than 5 shopify is down 5 your peloton is in the green, 1 . That 30 minute ride i did earlier today. I was pedaling it higher. Through go. Thanks for watching power lunch. Closing bell starts right now. Im wilfred frost along with sara eisen stocks are tanking across the board as we head into the final hour of trade. Lets have a look at whats driving the action surging coronavirus cases are weighing on stocks the german dax plunging 8. 6 this week. Illinois and tristate cities like newark are tightening restrictions as well earnings remain in focus

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