Steve smith. Good tuesday morning, everybody. It is 11 00 a. M. On wall street and squawk alley is live good tuesday morning, everybody. Deirdre bosa with us we are kicking off one of the toughest months for stocks getting a nice start here as the s p hit an alltime high we continue to watch the large cap tech names that include stocks like zoom and percentage gains that make your jaw drop. Absolutely, carl. Speaking of zoom, i have been calling it the consult of zoom, we have been talking about those incredible numbers, climbing market cap, remember they went public at a 9. 2 valuation. Take a look at these results, this chart says it all the increase, the step up, year over year, the earnings was something to behold. And at the same time, guys, it is our job to throw a little cold water on a quality like following. If you think it can become the next blue chip tech stock we saw in the results last night that it is growing a base of small users and it is making up a larger portion of
Ceo bristow, they were gold is super outspoken, so always fun to talk to him. For more on the stimulus measures, lets talk to greg valliere. Your take on the executive order that trump issued, where that leaves stimulus conversations in the u. S. Greg the talks are dead, maybe a resumption later in the week. About whetherions the states can contribute to this, whether it is legal. The legal fight could drag on for a while. Democrats and others feel trapped right now. They cannot be portrayed as suing to stop aid to people, so all parties have a reason to resume the talks. Guy did nancy pelosi make a mistake . She has a reputation for being a good negotiator. How did she end up putting herself into a corner like this, do you think . May fore had a bill in 3. 6 trillion. I think she overreached. I think she didnt realize trump would try to do something through executive action. Now she is in a bind because if she sues, those people will be portrayed poorly. She may not have calculated ve
The cash trade less than one hour a day away. Stocks push higher as u. S. Coronavirus hospitalizations dropped, even as global cases top 20 million. Fresh stimulus remains elusive though, as President Trump looks to cut the Capital Gains tax. The earnings season continues, with numbers from heavy hitters, like softbank and prudential. Plus, we will speak with several ceos. Plus, ready and able, the bank of england. One member tells the times the bank will step up their q. Week q. E. Am their anna, what are you seeing . Anna good to see you. It had beenw where anticipated, 3. 9 . Threemonth rate, of course come with expectation that we would end the threemonth period to the end of june at 4. 2 . This is better than what had been anticipated, but remember, there is a challenge in terms of being able to reflect the unemployment reality on the ground. This number has been protected from rising to a large degree, for better or worse, and that means we still may be seeing a surge in unemploy
Lets check where we stand on this wild markets day stocks taking a dive in just the past few minutes, now down 130 points all the major indexes reversing at the tenyear yield hits its lows of the day. And that is a sign of worrisome growth ahead lets go to bob pisani hi, bob. Hello, tyler. Again, markets roughly tracking bond yields. Take a look at a chart weve shown a lot recently the intraday of the tenyear versus the stock market here we saw a program come through as yields dip below 1. 5 here weve been trading practically in lock step with those yields today. See the market here with the tenyear yield on the top there in the s p on the bottom this is an intraday. And pretty much moving in lock step i want to note two weak sectors today. Retailers are continuing to get slammed today. Macys gap, l brand, all down another 4 these all of them are down about 20 this month i want to highlight transports common theme here. Logistics and trucking like jb hunt and rooyder ryder, all wear to
Front and center and for us to consider. How do you see things now . I see things as a safe haven trade is in place. I still look at the environment and see a disinflationary trend and slower Economic Growth and the horrific growths of the weekend do nothing to reverse those two conditions. Thats what i see in front of us. I believe bonds over equities is where youll see more of the valuep opportunity, but within the equity market you still have the areas where there are strong tailwinds and we know thats the magnificent seven. You can make the case that energy is making a little bit of a comeback there in that regard an the defense stocks. Most immediate, im glad you brought it up, forgive me for cutting you off, but i want go there, you bought the ita . I did. We had maintained position in the quality momentum strategy to both Lockheed Martin and nor Northrop Grumman over the last several years. We exited those positions. Nothing that could be effective in that strategy until the end