Transcripts For CNBC Worldwide 20240703 : comparemela.com

And hack tack profits hit . And then looking at the hand that feeds it. We will look at that one. It is friday, october 6th, 2023. You are watching Worldwide Exchange here on cnbc. Good morning. Welcome to Worldwide Exchange. Im frank holland. Lets start your friday with the check on the u. S. Stock futures after modest losses yesterday. Take a look. We are mixed right now. We are seeing the s p and the dow fractionally lower. Nasdaq higher. We alsoways say it is early. A mixed bag with the s p on track for the fifth straight week of losses. And we look at the yields with the 2year treasury still above 5 . You have to look at the 30year treasury which is creeping up back toward the 5 yield. Remember, this is an important indicator for Inflation Expectations and investor confidence. All of this is the lead up to the september employment report. Economists expecting employers to add 170,000 net new jobs last month. That is down slightly from last month. The Unemployment Rate, however, expected to tick up sorry, tick lower to 3. 7 . It was 3. 8 last month. The Energy Market here is on pace for the worst week since march. Wti below 90 a barrel. Brent crude is also below 90 a barrel at 84. 03. Big moves in the natural gas right now. Up 1. 25 . Something to continue to watch throughout the morning. Time to get a check of the corporate stories with pippa stay co stevens. Exxonmobil is in talks to buy Pioneer Natural Resources in a deal that could be worth as much as 60 billion. That acquisition could be announced within the next couple days. This tops the pfizer 43 billion takeover the seagen. Open a. I. , the Company Behind chatgpt is exploring making its own chips. It is looking at discussing other options including working with other chipmakers like nvidia and diversifying the supply chain beyond nvidia. Open a. I. Has declined to comment. Mgm resorts is looking at the cyber attack which shutdown the casinos last month to cost the company 100 million in the quarter. It forced mgm to shutdown the i. T. Systems and disrupting slot machines and clerks to checkin guests with paper and pen. Operations have returned to normal. The hackers did not steal customer payment information, but did access data on people who did business with mgm before march of 2019. The wall street journal reports mgm refused to pay the ransom demand. Frank, shares are down 20 in the last month. Something to watch. We will talk more about the hack attack later with contessa brewer. And we have the word on the s p 500 with the breaking point for stocks according to jpmorgan chases kolanovic. Appearing on fast money last night, he said investors may choose cash over stocks in the short term. You are starting to see the stress if you look at the dec delinquencies in the cars and auto loans. This will eventually come. Then we look at the upside versus downside. Could there be another 5 in equities . Of course. If there is a down side, it is 20 upside. Lets talk about this with alex morris and steve shevarone. Dpr great to have you here this morning. Good morning. Good morning. Alex, do you agree with him or disagree . I agree, obviously, the 20 downside. That risk existing every day. Finally, marko and i agree with tbills and chilling is a good place to be. Everything is looking washed out in the market. There is a healthy supply of demand in securities. It seems there is an insatiable demand for treasuries. I dont know the stock market needs to go 20 to prove these thesis to be correct. You want to get that, but maybe not today. As you unwind duration and think what is happening in 2024, there are a lot of positives for the economy. The financial economy may be washed out on metrics, but still vibrant and a good place to be later in 2024. Tbill and chill. You may want to drop some merch. Steve, over to you . Higher rates prevent a risk. Higher borrowing rates. Historically, when the fed pauses, which it looks like they will do after the one hike in november, stocks will rally. On average, 10 to 15 to 20 . If you look at the last 40 years, the s p hit a record high every time the fed has paused. Are conditions for recession starting to accumulate . Absolutely. The issue is timing. It could be 6, 9 or 12 months away. I dont think equity is capped at 5 or 10 . It could be a number higher than that. Really . Yeah. Historically what you have seen when the fed pauses, particularly if unemployment hasnt picked up and we have a report coming today that is almost certainly going to show it hasnt picked up meaningfully is the s p hit alltime highs. Whether the market is right or not, it tends to price in a soft landing when the fed pause s. Steve, i want to ask if the bond market is pricing in recession. You are also looking at history and precedents in the bond market. Especially with the inversion with the 2 10 yield. What is the history were seeing and doesnt that signal Recession Risk . Usually yes. When theinverts, that is an Early Warning sign. When it resteepens, it is a sign of a slowdown imminent. Usually what happens is the short rates are falling as the market is pricing in cuts. This time around, long rates are rising and what that is showing is the market is trying to price in higher for longer or we have a buyers strike. It is not clear the signal is what it usually is. This may be a recession signal or recognizing it is higher for longer. That nominal gdp is higher. Unclear. We continue to watch that inve inversion. Alex, Worldwide Exchange is a show of bonds recently. When you are tbilling and chilling, is it short or long . The shortend products we he offer. That made sense. We see folks extending duration. This is a reinversion that is necessary and it needed to happen this way. It is a fed, as opposed to stimulate the economy, is actually still actively trying to destroy job creation which is a strange place for them to be. We see the long bonds come out and there are some running to the dictionary looking to see what is a long bond. Can Interest Rates start with a zero or a one. Long bond is not insane at 5 or 10 . That is not a bad place for us. Both are a pretty good place. Are you buying the 10 or the 30 or the 20, which we are not showing . The 20 is always an interesting issue given how it is occasionally not offered by the treasury department. We always like the 20. Most clients are in six months. The short end. We see interest in the three and five. I dont know i want to make that trade yet. Steve says you are not penalized for being a few months early on the trade. You dont want to be 6 months on the 12 months. Steve, you think there is more upside in the market. What you are buying is the russell 1000 growth and why is this important . You have dividend payers on the value side. We finally started to see selloff in large growth names. You buy them for a couple of reasons. If you have another move higher here because it is stretched, the treasury sold off to the down downside. Secondly, if marko is right over the course of 2024 and the economy slows, you want cash flow Generating Companies that dont require a lot of external financing. You will find those in the large growth cap space. Being underweight most of the year, we are starting to nibble. Something we will continue to watch. Alex and steve, dpgreat to have you here. Thank you. We will continue our talk about rates and longer. Next week, tune in for the k coverage start oning on monday. We have loohave a lot more Worldwide Exchange, with the word every investor needs to know and we speak to one employer whose head count is surging. And later, spiderman gets hit by taylor swift. Well explain when Worldwide Exchange returns. Stay with us. This is a clustomer. It happens when Marketers Group all their customers together. Mailchimp uses realtime behavior data so you can personalize email for every customer. Turn clustomers into customers, with intuit mailchimp. Welcome back to Worldwide Exchange. Take a look at futures right now swinging positively in the green. The dow would open up a few points higher. Nasdaq is surging right now. S p is pbarely in the green. Time to look at europe as its trading day is underway. We have Joumanna Bercetche with more on the early action from the london newsroom. Happy friday. Happy friday, frank. Markets are faring better ahead of the nonfarm payroll print in the u. S. Hand over from asia was positive. Good rebound in hang seng. Mainland china has been closed this week. This is the sign we are getting from the markets. Up 1. 6 . Broad based today. The nikkei is the only spot of red overnight down. 25 . Some Interest Rate sensitive sectors are getting hit as yields get close to 80 basis points and trending upwards. Keep an eye on yields. As for the picture in europe, it has been negative as a whole. Al all of the indices down. Ftse 100 is down 1. 6 . We are seeing the buying coming through. Banks and tech are leading the gains today. On the flip side, lets take you to what is happening in the food and befverage space. This has a knockon effect from yesterday, frank. Unilever down 2 . Nestle is down 2 . This is all due to the popularity of the weight loss drugs which entails people cutting down on fast food and junk food which is taking a hit to the consumer goods companies, not just in the u. S. , but europe, as well. This has been the picture today. The worst performing sector of consumer goods. Joumanna, thank you very much. Joumanna bercetche live in the london newsroom. We turn now to the Gaming Sector as sports media leads in teams moving to the gambling industry. Streamers are tiptoeing in the space. Contessa brewer has more on the story. Reporter frank, for the first time ever, netflix agreed to a casino licensing deal based on the most watched show ever squid games. The manufacturer will show off the new slot machines at the expo in Las Vegas Next week. This has a 90inch display. It will be an eye popper on the casino floor. You will see games on it. It will launch a digital game for Online Platforms next year. I talked with the companys ceo mat wilson about taking advantage of the International Streaming hit. How does the appeal come to the younger person . The first evntertainment Services Back online. We saw younger players to casino floors. I also think with this particular property, there is really a true element of gaming itself. We have great game designers to turn it to appeal to a broad audience. Reporter tv branded slots are not enough. The popular wheel of Fortune Games as an example. This is popular for the nfl branded slots. They can be transformative because they attract the young adults to slots, where traditionally slots players are older demographics. Slots make up the biggest gaming revenue for casinos. For netflix, it creates a new revenue stream for a show which hit the height of popularity in 2021. We could see a Stranger Things slot machine next . Reporter that is entirely possible. I dont know whether this indicates that netflix has broader ambitions in the gambling industry. It could be they are maximizing the licensing deals. We have seen clothing manufacturers with deals. There has been speculation about apple tv with live sports now and amazon and whether getting live sports means the next iteration has a gambling component. We could see the model with espn. They do have a deal with penn entertainment. They relaunch as espn bet. It doesnt mean it has to go around and get licensed wherever gaming is legal. It means they have a new revenue stream based on gamblgambling. I also want to talk about the cyber attack we talked about earlier. They expect a 100 million hit to the mgm bottom line. What are you hearing . Reporter they filed the 8k and tried to put a number on that. They said we dont know. We dont know what will happen with lawsuits or the exposure of the sensitive customer data. Remember, they were trying their best to protect against the cyber intruders getting on the customer data. It didnt entirely work. We know some of the data was exposed, but so far it doesnt an appear any has been posted on the dark web. Could it in the future . Who knows . The third thing is and according to my sources, mgm did not pay the ransom. Could it happen in the future . The other interesting part is they have cyber insurance. They said in the 8k filing, they he anticipate coverage, but whether you see pushback is unknown and could come into play. It ccontessa brewer, thank y and we have one of t bheig money movers for Warren Buffett and Berkshire Hathaway when we come back. all toooo youuuuu sean i wish for the amazing new iphone 15 pro jason sean do you mean this one the one with titanium . sean no way i can trade this busted up thing for one. jason maybe stealing wishes from the birthday boy is not your best plan switch to verizon and trade in any iphone and get the new iphone 15 pro on them. sean what . jason yup, and on an Amazing Network sean and i dont have to ruin anymore birthday parties jason yeah, that ship has sailed. Lets go get you the iphone. Here we go, come on hon. vo trade in any iphone in any condition for a new iphone 15 pro on us. Only on verizon. Meet gold bond daily healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers 3 vitamins. And. New gold bond healing sensitive. Clinically shown to heal moisturize dry, sensitive skin. Gold bond. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Time for the big money momo mov movmover s. Levi has cut the full year sales forecast. Positive movement on the web site was not enough to offset the weaker wholesale trends last night. We are trying to get to a profitable Success Model for brick and mortar retail. After we get that, we will stamp out quicker. Shares of gm set to open at a threeyear low following the stock slide on reports which it may face issues with the defective air bag inflaters. 20 million vehicles equipped with deadly air bag parts made by arc automotive. Shares are trading at a threeyear low. And Berkshire Hathaway selling 3. 1 million shares of hp. This latest share puts the stake below 10 and moving forward berkshire will no longer need to disclose buying or selling of hp stock. Looking at hp stock right now and it is down. 50 . Time for a check of headlines outside of business is Jessica Layton in new york. Frank, good morning. House lawmakers will be back in the chamber today. The two candidates for speaker is jim jordan and Antonin Scalia w steve scalise. So far, one has the backing of the frontrunner with former President Trump confirming on truth social this morning that he will be endorsing jordan for speaker of the house. Now to a major reversal from the biden administration. Announcing it is waiving 26 Million Construction laws. The only reason this is happening now is because congre congress allocated money during the Trump Administration and they have to use the money that way. And bears fans watched with heavy hearts after mourning the loss of dick butkus. He played his entire career with the bears. He made eight straight pro bowls and had number 51 retired by the bears and uninducted in the hal of fame in 79. Frank, the team said this win is for him. Back to you. You know, dick butkus was a legend in chicago. I used to live there. Condolences to his family. Jes jessica, great to see you. As we head to break on w Worldwide Exchange, we have the todays number of 17 billion as the consumer stat. Thats a jump of spending over last holiday season. We will see what that means for my next guest who is hiring. He is coming up right after this break. Stay with us. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to help keep our Online Platform safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. It is 5 30 a. M. In the new york city area. There is more ahead here on Worldwide Exchange. Here is whats on deck. Stocks closing out another week with the s p looking at five weeks of losses. And key for investors today is the monthly jobs report. We talk with one leader whose company is adding head count. And General Motors making the latest labor offer to the uaw as the group prepares to give the latest look at where it is headed next. It is friday, october 6th, 2023. You are watching Worldwide Exchange here on cnbc. Welcome back to Worldwide Exchange. Im frank holland. Lets get you ready to start the last trading day of the week. We pick up the day with a look at futures. We are in the green across the board. It was mixed earlier. The dow would open up 18 points higher. Nasdaq doing the best of all three indices. We always say it is early. Were coming off another tough week for the markets. It is down on pace for the Worldwide Exchange<\/a> here on cnbc. Good morning. Welcome to Worldwide Exchange<\/a>. Im frank holland. Lets start your friday with the check on the u. S. Stock futures after modest losses yesterday. Take a look. We are mixed right now. We are seeing the s p and the dow fractionally lower. Nasdaq higher. We alsoways say it is early. A mixed bag with the s p on track for the fifth straight week of losses. And we look at the yields with the 2year treasury still above 5 . You have to look at the 30year treasury which is creeping up back toward the 5 yield. Remember, this is an important indicator for Inflation Expectations<\/a> and investor confidence. All of this is the lead up to the september employment report. Economists expecting employers to add 170,000 net new jobs last month. That is down slightly from last month. The Unemployment Rate<\/a>, however, expected to tick up sorry, tick lower to 3. 7 . It was 3. 8 last month. The Energy Market<\/a> here is on pace for the worst week since march. Wti below 90 a barrel. Brent crude is also below 90 a barrel at 84. 03. Big moves in the natural gas right now. Up 1. 25 . Something to continue to watch throughout the morning. Time to get a check of the corporate stories with pippa stay co stevens. Exxonmobil is in talks to buy Pioneer Natural Resources<\/a> in a deal that could be worth as much as 60 billion. That acquisition could be announced within the next couple days. This tops the pfizer 43 billion takeover the seagen. Open a. I. , the Company Behind<\/a> chatgpt is exploring making its own chips. It is looking at discussing other options including working with other chipmakers like nvidia and diversifying the supply chain beyond nvidia. Open a. I. Has declined to comment. Mgm resorts is looking at the cyber attack which shutdown the casinos last month to cost the company 100 million in the quarter. It forced mgm to shutdown the i. T. Systems and disrupting slot machines and clerks to checkin guests with paper and pen. Operations have returned to normal. The hackers did not steal customer payment information, but did access data on people who did business with mgm before march of 2019. The wall street journal reports mgm refused to pay the ransom demand. Frank, shares are down 20 in the last month. Something to watch. We will talk more about the hack attack later with contessa brewer. And we have the word on the s p 500 with the breaking point for stocks according to jpmorgan chases kolanovic. Appearing on fast money last night, he said investors may choose cash over stocks in the short term. You are starting to see the stress if you look at the dec delinquencies in the cars and auto loans. This will eventually come. Then we look at the upside versus downside. Could there be another 5 in equities . Of course. If there is a down side, it is 20 upside. Lets talk about this with alex morris and steve shevarone. Dpr great to have you here this morning. Good morning. Good morning. Alex, do you agree with him or disagree . I agree, obviously, the 20 downside. That risk existing every day. Finally, marko and i agree with tbills and chilling is a good place to be. Everything is looking washed out in the market. There is a healthy supply of demand in securities. It seems there is an insatiable demand for treasuries. I dont know the stock market needs to go 20 to prove these thesis to be correct. You want to get that, but maybe not today. As you unwind duration and think what is happening in 2024, there are a lot of positives for the economy. The financial economy may be washed out on metrics, but still vibrant and a good place to be later in 2024. Tbill and chill. You may want to drop some merch. Steve, over to you . Higher rates prevent a risk. Higher borrowing rates. Historically, when the fed pauses, which it looks like they will do after the one hike in november, stocks will rally. On average, 10 to 15 to 20 . If you look at the last 40 years, the s p hit a record high every time the fed has paused. Are conditions for recession starting to accumulate . Absolutely. The issue is timing. It could be 6, 9 or 12 months away. I dont think equity is capped at 5 or 10 . It could be a number higher than that. Really . Yeah. Historically what you have seen when the fed pauses, particularly if unemployment hasnt picked up and we have a report coming today that is almost certainly going to show it hasnt picked up meaningfully is the s p hit alltime highs. Whether the market is right or not, it tends to price in a soft landing when the fed pause s. Steve, i want to ask if the bond market is pricing in recession. You are also looking at history and precedents in the bond market. Especially with the inversion with the 2 10 yield. What is the history were seeing and doesnt that signal Recession Risk<\/a> . Usually yes. When theinverts, that is an Early Warning<\/a> sign. When it resteepens, it is a sign of a slowdown imminent. Usually what happens is the short rates are falling as the market is pricing in cuts. This time around, long rates are rising and what that is showing is the market is trying to price in higher for longer or we have a buyers strike. It is not clear the signal is what it usually is. This may be a recession signal or recognizing it is higher for longer. That nominal gdp is higher. Unclear. We continue to watch that inve inversion. Alex, Worldwide Exchange<\/a> is a show of bonds recently. When you are tbilling and chilling, is it short or long . The shortend products we he offer. That made sense. We see folks extending duration. This is a reinversion that is necessary and it needed to happen this way. It is a fed, as opposed to stimulate the economy, is actually still actively trying to destroy job creation which is a strange place for them to be. We see the long bonds come out and there are some running to the dictionary looking to see what is a long bond. Can Interest Rates<\/a> start with a zero or a one. Long bond is not insane at 5 or 10 . That is not a bad place for us. Both are a pretty good place. Are you buying the 10 or the 30 or the 20, which we are not showing . The 20 is always an interesting issue given how it is occasionally not offered by the treasury department. We always like the 20. Most clients are in six months. The short end. We see interest in the three and five. I dont know i want to make that trade yet. Steve says you are not penalized for being a few months early on the trade. You dont want to be 6 months on the 12 months. Steve, you think there is more upside in the market. What you are buying is the russell 1000 growth and why is this important . You have dividend payers on the value side. We finally started to see selloff in large growth names. You buy them for a couple of reasons. If you have another move higher here because it is stretched, the treasury sold off to the down downside. Secondly, if marko is right over the course of 2024 and the economy slows, you want cash flow Generating Companies<\/a> that dont require a lot of external financing. You will find those in the large growth cap space. Being underweight most of the year, we are starting to nibble. Something we will continue to watch. Alex and steve, dpgreat to have you here. Thank you. We will continue our talk about rates and longer. Next week, tune in for the k coverage start oning on monday. We have loohave a lot more Worldwide Exchange<\/a>, with the word every investor needs to know and we speak to one employer whose head count is surging. And later, spiderman gets hit by taylor swift. Well explain when Worldwide Exchange<\/a> returns. Stay with us. This is a clustomer. It happens when Marketers Group<\/a> all their customers together. Mailchimp uses realtime behavior data so you can personalize email for every customer. Turn clustomers into customers, with intuit mailchimp. Welcome back to Worldwide Exchange<\/a>. Take a look at futures right now swinging positively in the green. The dow would open up a few points higher. Nasdaq is surging right now. S p is pbarely in the green. Time to look at europe as its trading day is underway. We have Joumanna Bercetche<\/a> with more on the early action from the london newsroom. Happy friday. Happy friday, frank. Markets are faring better ahead of the nonfarm payroll print in the u. S. Hand over from asia was positive. Good rebound in hang seng. Mainland china has been closed this week. This is the sign we are getting from the markets. Up 1. 6 . Broad based today. The nikkei is the only spot of red overnight down. 25 . Some Interest Rate<\/a> sensitive sectors are getting hit as yields get close to 80 basis points and trending upwards. Keep an eye on yields. As for the picture in europe, it has been negative as a whole. Al all of the indices down. Ftse 100 is down 1. 6 . We are seeing the buying coming through. Banks and tech are leading the gains today. On the flip side, lets take you to what is happening in the food and befverage space. This has a knockon effect from yesterday, frank. Unilever down 2 . Nestle is down 2 . This is all due to the popularity of the weight loss drugs which entails people cutting down on fast food and junk food which is taking a hit to the consumer goods companies, not just in the u. S. , but europe, as well. This has been the picture today. The worst performing sector of consumer goods. Joumanna, thank you very much. Joumanna bercetche live in the london newsroom. We turn now to the Gaming Sector<\/a> as sports media leads in teams moving to the gambling industry. Streamers are tiptoeing in the space. Contessa brewer has more on the story. Reporter frank, for the first time ever, netflix agreed to a casino licensing deal based on the most watched show ever squid games. The manufacturer will show off the new slot machines at the expo in Las Vegas Next<\/a> week. This has a 90inch display. It will be an eye popper on the casino floor. You will see games on it. It will launch a digital game for Online Platforms<\/a> next year. I talked with the companys ceo mat wilson about taking advantage of the International Streaming<\/a> hit. How does the appeal come to the younger person . The first evntertainment Services Back<\/a> online. We saw younger players to casino floors. I also think with this particular property, there is really a true element of gaming itself. We have great game designers to turn it to appeal to a broad audience. Reporter tv branded slots are not enough. The popular wheel of Fortune Games<\/a> as an example. This is popular for the nfl branded slots. They can be transformative because they attract the young adults to slots, where traditionally slots players are older demographics. Slots make up the biggest gaming revenue for casinos. For netflix, it creates a new revenue stream for a show which hit the height of popularity in 2021. We could see a Stranger Things<\/a> slot machine next . Reporter that is entirely possible. I dont know whether this indicates that netflix has broader ambitions in the gambling industry. It could be they are maximizing the licensing deals. We have seen clothing manufacturers with deals. There has been speculation about apple tv with live sports now and amazon and whether getting live sports means the next iteration has a gambling component. We could see the model with espn. They do have a deal with penn entertainment. They relaunch as espn bet. It doesnt mean it has to go around and get licensed wherever gaming is legal. It means they have a new revenue stream based on gamblgambling. I also want to talk about the cyber attack we talked about earlier. They expect a 100 million hit to the mgm bottom line. What are you hearing . Reporter they filed the 8k and tried to put a number on that. They said we dont know. We dont know what will happen with lawsuits or the exposure of the sensitive customer data. Remember, they were trying their best to protect against the cyber intruders getting on the customer data. It didnt entirely work. We know some of the data was exposed, but so far it doesnt an appear any has been posted on the dark web. Could it in the future . Who knows . The third thing is and according to my sources, mgm did not pay the ransom. Could it happen in the future . The other interesting part is they have cyber insurance. They said in the 8k filing, they he anticipate coverage, but whether you see pushback is unknown and could come into play. It ccontessa brewer, thank y and we have one of t bheig money movers for Warren Buffett<\/a> and Berkshire Hathaway<\/a> when we come back. all toooo youuuuu sean i wish for the amazing new iphone 15 pro jason sean do you mean this one the one with titanium . sean no way i can trade this busted up thing for one. jason maybe stealing wishes from the birthday boy is not your best plan switch to verizon and trade in any iphone and get the new iphone 15 pro on them. sean what . jason yup, and on an Amazing Network<\/a> sean and i dont have to ruin anymore birthday parties jason yeah, that ship has sailed. Lets go get you the iphone. Here we go, come on hon. vo trade in any iphone in any condition for a new iphone 15 pro on us. Only on verizon. Meet gold bond daily healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers 3 vitamins. And. New gold bond healing sensitive. Clinically shown to heal moisturize dry, sensitive skin. Gold bond. Explore endless design possibilities. To find your personal style. Endless hardie\u00ae siding colors. Textures and styles. Its possible. With james hardie\u2122. Time for the big money momo mov movmover s. Levi has cut the full year sales forecast. Positive movement on the web site was not enough to offset the weaker wholesale trends last night. We are trying to get to a profitable Success Model<\/a> for brick and mortar retail. After we get that, we will stamp out quicker. Shares of gm set to open at a threeyear low following the stock slide on reports which it may face issues with the defective air bag inflaters. 20 million vehicles equipped with deadly air bag parts made by arc automotive. Shares are trading at a threeyear low. And Berkshire Hathaway<\/a> selling 3. 1 million shares of hp. This latest share puts the stake below 10 and moving forward berkshire will no longer need to disclose buying or selling of hp stock. Looking at hp stock right now and it is down. 50 . Time for a check of headlines outside of business is Jessica Layton<\/a> in new york. Frank, good morning. House lawmakers will be back in the chamber today. The two candidates for speaker is jim jordan and Antonin Scalia<\/a> w steve scalise. So far, one has the backing of the frontrunner with former President Trump<\/a> confirming on truth social this morning that he will be endorsing jordan for speaker of the house. Now to a major reversal from the biden administration. Announcing it is waiving 26 Million Construction<\/a> laws. The only reason this is happening now is because congre congress allocated money during the Trump Administration<\/a> and they have to use the money that way. And bears fans watched with heavy hearts after mourning the loss of dick butkus. He played his entire career with the bears. He made eight straight pro bowls and had number 51 retired by the bears and uninducted in the hal of fame in 79. Frank, the team said this win is for him. Back to you. You know, dick butkus was a legend in chicago. I used to live there. Condolences to his family. Jes jessica, great to see you. As we head to break on w Worldwide Exchange<\/a>, we have the todays number of 17 billion as the consumer stat. Thats a jump of spending over last holiday season. We will see what that means for my next guest who is hiring. He is coming up right after this break. Stay with us. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to help keep our Online Platform<\/a> safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. It is 5 30 a. M. In the new york city area. There is more ahead here on Worldwide Exchange<\/a>. Here is whats on deck. Stocks closing out another week with the s p looking at five weeks of losses. And key for investors today is the monthly jobs report. We talk with one leader whose company is adding head count. And General Motors<\/a> making the latest labor offer to the uaw as the group prepares to give the latest look at where it is headed next. It is friday, october 6th, 2023. You are watching Worldwide Exchange<\/a> here on cnbc. Welcome back to Worldwide Exchange<\/a>. Im frank holland. Lets get you ready to start the last trading day of the week. We pick up the day with a look at futures. We are in the green across the board. It was mixed earlier. The dow would open up 18 points higher. Nasdaq doing the best of all three indices. We always say it is early. Were coming off another tough week for the markets. It is down on pace for the Third Straight<\/a> negative week for the s p. S p facing the fifth the nasdaq is flat. We are looking at the bond market as well. Take a look. The 10year treasury is 4. 73. The 2year treasury is 5 . And the 30year treasury is 4. 9 . This is a read on inflation expec expectation. We talk about oil which is on pace for the worst week since march. Wti is negative right now. It was flat earlier at 82. 13. Brent crude is about the same down. 25 . The action on the Natural Gas Market<\/a> is up over 1 . Slightly off the highs of earlier this morning. Time for a check of the top corporate stories with people v o. J. Simpson stories with pippa stevens. Gm makes a new counteroffer to uaw. It would reward the team members to thrive in the future. That comes at shawn fain is set to update members on talks at 2 00 p. M. Today. Fain has previously used the updates to announce new strike locations. It is unclear if that is the case today. The white house is moving closer to setting up a facetoface with President Biden<\/a> and chinese president xi jinping. According to reports, the administration is working on plans for a november meeting in San Francisco<\/a> during the apac summit. The potential sitdown which needs to be approved by officials in beijing comes after xi skipped the g20 summit last month. And the s. E. C. Is suing elon musk over the purchase of twitter. Attorneys say musk failed to appear for testimony last month as required by the subpoena. The s. E. C. Says the investigation is focused on anyone committing securities fraud in purchasing twitter shares last year as musk was buying stock in the company. Frank. Thank you, pippa. The countdown is on for the monthly jobs report due out in three hours. Employers are expected to add 170,000 new jobs in september which is down from 187,000 in august. The Unemployment Rate<\/a> is moving to 3. 7 from 3. 8 the previous month. We are talking about manufacturing which added 16,000 jobs in august. See if the trend can continue with matt schwartz. His Brand Partners<\/a> include nike and lululemon. Matt, thank you for being here. Thank you for having me. We mentioned manufacturing and tech. What is the hiring environment now . Do you expect to hire and do you have it hire at higher wages . The hiring environment is strong. Head count since january of 2020 is up 28 . You know, we have seen an easing and i think indeed. Com published 15 reduction in job listings on the site since the First Quarter<\/a> of 2023. If you picture the labor pool, the talent stagnant, but demand for employees going down is something we see. It is eased for the business sdplbusiness. I want to talk wages. Medium firms between 50 and 249 workers, the average increase for a retained worker, somebody who stayed, is 6. 1 . What do you see for you with the wide Employee Base<\/a> . You have Software Developers<\/a> and designers. What do you have to pay to keep people . There is no question there is an increase of wamgges across t board. Tech development or ecommerce part of the business, across the board, we have seen an increase. One thing we do to counter that and shore up retention to create Corporate Culture<\/a> is everything eased in terms of covid and restrictions and bringing people back to the office and do monthly events. We have ice cream tryucks and dogs at work. Commune areas. Your top selling shoe is the best in the last eight months. You debuted several styles. I think some of those are named after your wife. True. You put out a release. Each one of these is built on the exaisting platform. How does that impact your innovation and styles and the customers who are retailers. You are a wholesaler. You sell to retailers. Their ability to hold inventory. Both good questions. We have a strong balance sheet. No longterm debt. Interest rates have been less impactful. Shortterm cash flow challenges which are minor. There is no question in the business at large for the retailers we work with and carrying costs are higher with challenges in the supply chain in 2021 and 2022. There was limited open to my market place. That is easing. We see a strong consumer demand. Sales are double digit growth. How do you resolve that . Do you extend more credit to the retailers or push direct to consumer channels . Both answers are true. We work with tools at our disposal. Whether it is terms or good packages which have incentives of sorts. Of course, the directtoconsumer business is crucial and powerful from the branding perspective. Powerful from the bottom line. What about the brick and Mortar Stores<\/a> . Staffing is a challenge with all of the retailers. There are all reasons for it. The government pumped trillions in the economy coming out of covid. Employers were willing to spend more for people working from home. There are more opportunities. What you hear about people not showing up to interviews. We have done well. We work with training and making them experts. Jobs report coming up. Matt schwartz from aetrex. Third generation business. I hope the frank is coming next. You dont have to keep that pro promise. Thank you. Moving on to crypto. The trial of Sam Bankmanfried<\/a> today with the disgraced ftx founder. Kate rooney has been on site and joins us with the action. Good morning, frank. We heard from his closest friends and ftx insider in the criminal trial. The star witness this week was the Sam Bankmanfried<\/a>s college roommate. Gary wang. The prosecutor asked did you commit financial fraud at ftx. He said yes. Then asked did you see the people you committed fraud with. He stood up and looked around and spotted Sam Bankmanfried<\/a> and said sbf. He lived with Sam Bankmanfried<\/a> in the beach front bahamas house. He said customers deposited money and did not go to ftx, but funneled into the bank account of another Sam Bankmanfried<\/a> controlled company alameda. All of this at the direction of sbf. He said alameda had special privileges and unlimited access to the customer accounts. Took 8 billion of customer funds and had ability to withdraw money with the negative balance of 65 billion line of credit. Wang received a personal loan and said it wasnt for him. That borrowed money was used to make investments. We expect to hear more insiders in the next six weeks. That includes caroline ellison. Frank. Kate, so much to unpack here. First question is sbf. Is he the face of the criminal corruption . We are talking high profile celebrities. Tom brady and steph curry involved as inveinvestors. I cant tell you how many times tom brady was brought up this week. They were showing photos of the celebrity endorsements and customers who testified and one said that is the reason why ftx had a veil of legitimacy. There was a lot of brand awareness. We dont expect celebrities to testify. They have not been on the witness list. They are facing their own class action lawsuits. That could be theger issue. One ad said steph curry is not a crypto expert. I want to talk about the sentiment in crypto. What do we see with crypto stocks and the coins . Interesting about a year ago when this was unfolding it had a major impact on prices. There were worries of contagion in the lending going on. That hit prices. It has been stable since. Bitcoin has been less volatile. Investors are chalking the case up to fraud and saying this is a criminal case and not say it has anything to do with cryptocurrency or the investment thesis. Bitcoin and cryptocurrency survived. There are people who see it as a separate issue and think crypto has a long runway. It hit the perception and image of the industry. It is a negative for cryptocurrency and those who were already pessimistic about it. It gives them another reason not to invest. Kate rooney in the courtroom a all week long. Check out kates cnbc documentary. The collapse of ftx. You can scan the qr code on the screen right now to watch it or go to cnbc. Com. Coming up, we have the morning upgrades and downgrades and shares of one fintech player popping on love. And taylor swift breaking records in concerts and sporting events and now the silver screen. Tickets for the film 100 million after setting the single day sales record which beats spidermans previous record. And los angeles uses a. I. To predict and prevent hom homelessness. And a. I. Can get you into the past. A social media trend is prompting people to post a. I. Generated yearbook photos which are separated into categories like best dressed and most athletic. More Worldwide Exchange<\/a> coming up after this break. Stay with us. You know when you have those moments . That time to reflect. To be like wow. What did i do to get here . city ambient noise right. Work. You worked hard and its time for a bank thatll work hard for you. Everbank brings security and a guarantee. That youll earn a yield in the top 5 of competitive accounts. Going, got you where you want to be. Were the partners for your next move. Everbank. Advantage, you our therapists give their all each day. And while were in the business of taking care of others, its important to make sure our therapists know that with benefits from principal, theyre taken care of too. frustrated by skin tags . Dr. Scholls has the breakthrough youve been waiting for. The first fdacleared athome skin tag remover clinically proven to remove skin tags safely in as little as one treatment. Welcome back to Worldwide Exchange<\/a>. Time for the morning call sheet. Ab bernstein with coverage of disney with the 103 price target. It is bullish on the transition to directtoconsumer at scale all it the only challenger to netflix. Shares up. 25 . And square getting an outout perform rating. It favors it with the ecosystem and the ability to grow makes it among the most likely to challenge. Shares of square or block right now is up 1 . We have oppenheimer downgrading Oreilly Auto Parts<\/a> to perform. Something we flagged yesterday and pan democrdemic rallies wil continue to fade for sales and eps upside. Shares are plat in the premarket. It is time for the global briefing. We begin in russia. The government removing the restrictions around diesel. The kremlin saying the move is focused on the export of diesel to ports by pipeline. Indias central bank holding the lending rate at 6. 5 steady. It plans to keep the liquidity rating tight. It hiked rates 250 basis points since last may to bring inflation down to the 4 target. China Cyberspace Administration<\/a> group preposing the removal of data exports if regulators dont clarify what is important. Chinas proposal removes companies of challenges faced when transferring data cross bo borders. Coming up on Worldwide Exchange<\/a>, what one word every investor needs to know. Orwiill have more when wldde exchange returns. Stay with us. Power e trades easytouse tools, like dynamic charting and riskreward analysis help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from Morgan Stanley<\/a>. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from Morgan Stanley<\/a> we love going to games, but good seats get pricey. So we use gametime. Gametime checks ticket prices in realtime and finds you all the best last minute deals. We got our seats twenty minutes ago for sixty percent off last minute tickets at the best price, in seconds. Download gametime now we have great benefits from principal. So i know im taken care of. And not just me. But the ones who matter most to me. Welcome back to Worldwide Exchange<\/a>. Time for the wex wrapup. Exxonmobil in talks to buy Pioneer Resources<\/a> for 60 billion. That would be the largest oil deal this year. Shares of pioneer up double digits. Shares of gm set to open at a threeyear low. And tesla is cutting prices of the model 3 and model y. Prices for the model 3 and y have been dropped by 17 and 26 since the start of the year. Hyundai and kia adopting the ev charging stations in the u. S. In the Fourth Quarter<\/a> next year. They will join ford and gm. And mgm resorts expects the cyber attack to cost the company 100 million in the third quarter. Berkshire selling 3. 1 million shares of hp for 81 million. Berkshire will no longer need to disclose buying or selling of the stock as it owns less than 10 . What to watch this morning is the fed jobs report and they we hear from Christopher Waller<\/a> at noon and then at 2 00 p. M. We will have shawn fain speak out on the latest of the uaw strikes. The s p 500 faces the fifth straight week of losses. Lets dig into it with malcolm e ethridge. Good to see you. Jobs report is the headline today. With that in mind, what is your wex word of the day . My word is patience. Investors will want to see the last five weeks or six weeks of market activity and decide they want to come in and buy the dip because old habits die hard. I dont think were there yet. Patience will payoff. Bestcase scenario, markets remain in a rudderless ship and moving sideways and not having much activity. We may see more selling activity at the end of the month with more Economic Data<\/a> and that becomes obvious with the culmination of the increased rates in the last year and a half. You see things going rudderless right now. Here is what was said on fast mo money last night. You are starting to see the stress in the consumers with the delinquencies in the cards and auto loans and inflation is there. Rates are higher for longer. You know, this will eventually come. Then we look at upside versus downside. Could there be another 5 of equities . Of course. There is a downside of 20 . Bold statement there. Do you agree with him there is the potential for the 20 downside . Oh, absolutely. Im concerned about the on potential for the 20 downside. It takes 18 months for the lag to work into the labor market. Between now and the end of the year is where they show up. They show up in the form of decreased hiring first and then layoffs. If we are looking for layoffs to be the marker, we are will be waiting a little while and market could be selling off in reaction to what is happening underneath our feet. I agree there is the potential for a significant drawdown such as that. Thats why im saying investors jumping in and buying the dip, this is more than the dip. Hallmalcolm, you gave us you pick of sofi. It has been up over 1. 5 . Are you still sticking with that . I added to my sofi position since that call. The sort answer is yes. I definitely see it as a potential outlier separate from what we discussed. By the way, i misspoke. Up 2. 5 since your call. Malcolm, thank you very much. Maybe ill see you this austin. As we talk about rates at 5 and higher for longer, tune in for the coverage starting on monday. We will look across the sectors of the economy to see what the surging rates for the economy means for your money. Dont miss this one. We are taking a closer look world here on Worldwide Exchange<\/a>. Futures reversed this morning. They were mixed to lower. Now strongly in the green. Dow opening up 25 points higher. That is it for us on Worldwide Exchange<\/a>. Have a great weekend. Squawk box is coming up next. Good morning. Welcome to jobs friday. Two and a half hours away from the employment report which has investors and fed watchers on edge. Predictions are straight ahead. It is always a big deal, the jobs report, but if the back up in the tenyear is there, we will see. A soft number would help at this point. The zs. E. C. Is suing elon musk over his purchase of twitter. And uaw president shawn fain will update the Union Members<\/a> today. We will watch to see if strikes are expanded today. The big three have not been hurt financially yet. Sort of on purpose. It is friday, october 6th, 2023. Squawk box begins right now. Good morning. Welcome to sam bankquawk box cnbc. We are live from the Nasdaq Market<\/a> site in times square. Im becky quick along with joe kernen and andrew ross sorkin. It is jobs friday. This is a big one with a lot of attention. People are now wondering how Bond Investors<\/a> are going to react to the number. Not the fed. It is not the fed driving rates. The bond market has been doing the work for","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600504.us.archive.org\/11\/items\/CNBC_20231006_090000_Worldwide_Exchange\/CNBC_20231006_090000_Worldwide_Exchange.thumbs\/CNBC_20231006_090000_Worldwide_Exchange_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240703T12:35:10+00:00"}