tv Closing Bell CNBC October 9, 2020 3:00pm-5:00pm EDT
it keeps chugging along, though it certainly hit a speed bump there in september now the september losses apparently have been erased. >> i am impressed the way that they have taken all the headlines on the covid relief bill in stride, tyler. it has been a very confusing day. and the market still seems to have a lot of optimism about that don't you think? >> yeah. yeah absolutely there sort of seem to have been baked into the prices. we shall see kelly v a great weekend. >> you too >> and closing bell is now kelly and tyler, thank you happy friday, everyone welcome to "closing bell." i'm sara eisen along with wilfred frost. investor attention remains carely on washington the dow turning positive for the year with today's gains as we head into the final hour of trade. let's look at what is driving the action the focus once again on stimulus the trump administration now
upping its offer for an aid package to $1.8 trillion, president trump tweeting "go big" a positive development on the covid treatment. gilead's treatment helps infected people recover five days faster than average and tech stocks are outperforming as a massive deal is in the work the week capping it off with a bang. >> absolutely. the russell 2000 is up 6.4% for the week the dow is currently positive for the year as a whole, just. let's get to the stimulus news in washington and the reaction to it. bob basketball has a look inside the market rally ylan moi, and dana peterson from the conference board bob, let's start with you on
this very nice end to a strong week. >> good news and bad news, will. good news is, s&p is up about 3% on the month the bad news is i am seeing a little bit of an inversion of the stimulus play today. that's concerning if you are a believer in stimulus remember the stimulus play, bicyclicals materials and banks and industry and energy and go light on technology. that was working for the last week and a half until the middle of the day when it switched around suddenly tech was the leadership group and all the cyclical sthoks like the energy and industries turned south. this suggests some doubt about the stimulus bill, maybe mr. mcconnell's comments affected the markets or maybe it is simply exhausted if you look at industrials today stocks that had a great week generally were up. paccar ch robinson. united rentals
johnson controls generally much of it turned negative on the day. remember how much is banking on the cyclical play. the market's rotation into cyclecals is why the market held up as tech stocks lagged we moved into cyclicals fed ex, american airlines, deer deer is at a new high and of course we have also had material stocks up on infrastructure hopes we have had bank stocks, some of the big money center banks up 3, 4, 5% and some of the big regional banks up double digits. 12 or 13% in the case of u.s. bang corp. and others. a lot riding on the stimulus deal right now and we have no id idea how it is going to turn out. >> you mentioned the banks kpwx up and oil prices up.
overall it has been a week where that rotation, that catchup from the cyclicals has played out >> right so what happened in the middle of the day today mr. mcconnell came out and said i am not sure we are going to do a deal before that -- i think that's weighing on things right now all of a sudden tech just came back in the middle of the day. all of the cycles, the banks, industrials, and materials moved to the downside. that's an inversion. somebody flipped the trade here and either the cyclical trade is exhausted, which not good news because it didn't last very long or there is concerns whether the stimulus deal can get done that would be my interpretation of how the markets flipped around today. >> bob pisani. thank you. let's get to the very latest on whether the stimulus bill can get done ylan moi has been tracking every twist and turn in the negotiations where did we stand. >> nancy pelosi said she spoke to the treasury secretary half
an hour this afternoon and that the white house did attempt to address some of democrats' concerns however she said that there is no agreement on a strategic plan to crush the virus she also said the democrats are still waiting on specific language from the administration and still negotiating that top line number. a source tells me that the treasury secretary afterward a $1.8 trillion proposal but earlier this afternoon president trump told rush limbaugh that he wants to do an even bigger package than what democrats or republicans are offering and that he is going in the exact opposite direction from where he was earlier this week when he shut down the talks. meanwhile in kentucky mitch mcconnell warned theres not gob to be spaddy passage of any deal if and when there is one he said his first priority for the senate is confirming the supreme court nominee. back over to you. >> is there a yes now ylan that even if the white house and house speaker plessy are able to agree on a deal now that they
both want to go big whether republicans can actually bring the votes and mcconnell can bring the votes in the senate? >> mcconnell has said previously there could be a significant number of his caucus who does not get on board with a deal so the white house is going to have a very big sales job ahead of it trying to get senate republicans on board with this so far the talks have been concentrated between the white house and democrats. so it will be up to the president to make that case. can he decide exactly what he wants to see, and then can he bring the rest of the party on board? is this something that mitch mcconnell going to make time for on the legislative calendar before we get to the election? he is still optimistic that something will eventually get done but he's also very practical and looking at the calendar and saying there is not a lot of time to make this happen before the election. >> ylan thanks. for more on the stimulus and the economic picture in america
let's bring in dana peterson thank you for joining us do you feel like the recovery of the u.s. economy is still continuing fairly strongly without a stimulus bill? >> actually just the opposite. it looks like the recovery is slowing heading into the fourth quarter and potentially even stalling when we look at the data such as now cast out of the federal reserve banks and also some private now casts, it seems like the data are just not as strong as they were over the summer certainly when you lock at the labor market, initial jobless claims this morning remain stalled. unless when we look at last week's employment numbers, well, we just saw pretty moderate gains after very strong increases over the summer and parts of the spring. >> how big a stimulus is needed, by when, to turn that around >> well, it's tough to say how much stimulus, but, really, what types of stimulus would be important. certainly stimulus that helps members of the u.s. economy,
households who on the bottom of the k if you are looking at a k shaped recovery. those who lost jobs, businesses, small firms that are seeing their doors closed and certainly families who have had folks that have been placed on furlough and now are threatening to see permanent job losses certainly we need help there and also state and local governments seem to be under pressure so potentially some measure of stimulus for them as well would be important >> dana a lot of people on wall street know the conference board where you work for its consumer confidence numbers how would you characterize right now the attitudes of consumers in america about the present and the future. >> last week we pubbed our consumer confidence measures after two months of decline we saw a pop in confidence in september. that was related to households believing that business conditions would improve, also that employment options were a little bit better, and also they
were pretty upbeat about their future finances. so in a sense, that's really great news in september. we are just hoping that this plays out in the economic data, that this plays out in the labor market and certainly that businesss can make good on consumers' expectations for them. >> what do you think about the prospect of increasing corporate taxes in 2021? is now the right time for that >> well, certainly that is a focus for many businesses. but i would imagine that since we are probably still going to be grappling with the fallout from covid-19 that there is probably potential for additional stimulus rather than measures that might result in somewhat slower growth >> dana, do you think that there are other options out there in terms of policy if for some reason the senate can't get the votes or they have to delay stimulus can the fed do more? >> the fed is doing quite a bit right now. certainly the fed is keeping
interest rates at rock bottom levels, near zero through 2023 the fed is dee employing a ton of quantitative easing the fed adopted its averaging target and scheme which means that the fed is going to be more willing to wait for inflation to be a little bit higher, above the 2% target, before it acts, which would allow unemployment rates to fall further. so it's not really clear but i mean the fed can certainly continue to say it is going to remain calm and that it does have additional tools to deploy if necessary we also know that powell this past week pleaded to policy makers to implement additional fiscal system lous in order to splumt and compliment what the fed is doing. >> what is your outlook on the euro zone growth are we concerned about the spike in cases there >> we are.
there are two things we are concerned about. number one is definitely the spike in cases some of the lockdowns are much more targeted than what were elemented earlier this weir year nonetheless it is going to impose a drag on growth. we are also concerned about furlough schemes expiring. until like in the u.s. where you saw unemployment rates jump and then come off quickly. in europe they are being held at bay by these furlough schemes. governments are not going to allow that anymore and certain businesses will say some of these workers are going to be to have let go, unfortunately certainly for next year we are very much concerned about joblessness rising acutely in europe. >> dana peterson, thank you very much for joining us to cover all things economy and markets. s&p is up .75% after the break, former fda commissioner dr. scott gottlieb
joins us from the president's course of treatment to the rising number of cases in the u.s. and abroad. his thoughts on all of that. you are watching "closing bell" on cnbc. flexshares may look simple on the outside. but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares. powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.
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today marked a record high increase for global covid-19 infections of the more than 350,000. the number fueled by the spike in europe, according to the world health organization. yesterday, the uk reported more than 17,000 new cases alone. germany also seeing a spike. case numbers jump willing by nearly half to 4,000 in the u.s., new infections are edging higher, along with the most hospitalized covid-19 patients now since early september. joining us by form, the former fda commissioner he is a cnbc commissioner sits on the boards of phizer and alumina. he has a new op ed out in the
"wall street journal." the trump treatment for covid is come soon. dr. gott leeb, great to have you on the phone thanks for phoning in. >> thanks for having me. >> on the treatment, specifically these monoclona answered bodies which the president is talking a lot about. we have all been talking a lot about. regeneron and lily seeking emergency authorization. a lot of people out there are afraid to eat in doors to be able to go to school, to fly, to take vacations looking for a therapeutic that will keep us out of the hospital is that what weiss antibodies are? >> potentially we are going to be supply constrained. the data looks encouraging on both of the answered bodies, more towards the lily antibody the expectations was that these antibodies would be available before a vaccine and could be a bridge to a vaccine used as a treat and as a professional
lacksics in terms of being available to people. the companies did a great job in manufacturing but i don't think we as a nation freed up manufacturing for either one of these products if either one becomes approved for a a emergency authorization, i would estimate just based on current infections, there are about maybe 7,000 to 10,000 people over the age of 65 being infected every day who would be vi eligible for these drugs, that doesn't bake in people who have comorbidities. you are going to burn through the supply very quickly. even if the infection rates stay at the levels they are at. i predict they will actually rise. >> can operation warp speed throw billions of dollars at these to get them manufactured
to get them to the place we need them to be >> for this year, it would have needed to happen in april or may. there was plenty of money available to pay companies to stop manufacturing existing products to free up their manufacturing capacity for these drugs. what you would have probably had to do is go into companies that were producing products that weren't high demand products and said not only will we pay you for the money you will lose by stopping one manaforting process and starting this quid manufacturing but we will pay you for the loss you are likely to suffer in perpetuity because we know you will never get back to your current market share there is a way to calculate that value and compensate a company for it we could have done that i think there was a market clearing price for that. companies could have stepped up to offer manufacturing capacity. we didn't do it. there was discussion about doing
it it was never done. regeneron partnered with roche, they made their manufacturing capacity available lily did the same thing. but there wasn't a national coordinated strategy to free up manufacturing capacity to be able to produce at mass scale that if we had them at that scale right now we could use them as a vaccine. they can be used not only to treat people who are infected and prevent people from getting sick but you could give people a monthly injection of these drugs and keep them from getting infected that's how they were used in stopping ebola. >> doctor, it sounds great we are making this progress and we seemingly have a treatment that works effectively. if it is to the going to be as widely available as we would like was it irresponsible of the president to say don't let this disease, this virus dominate your lives and don't be too concerned by it? >> i think these drugs will make a meaningful difference for people who are a the highest risk of having a bad outcome we will have enough for some
proportion of the people at the highest risk of having a bad outcome. but it is not going to end the epidemic it is not going to be widely available to everyone. we have to ration it we have to ration it for people who at the highest risk of having a booed covid outcome that's some proportion of older individuals and those are high morbidities. people in nursing homes, front line health care providers, front line workers, it could have been effectively used as a vaccine until we got to a vaccine. we always talked about this as a bridge to a vaccine. unfortunately we are not going to have the supply to use it that way that said, we should be taking steps to try to make sure we have that supply available in 2021 so we are not constantly struggling to try to get adequate supply of these drugs if they are effective. all the early data is encouraging. >> in the meantime, dr. gott leeb, we also learned that
president trump was on a number of over the counter medicines and vitamin, vitamin d, pep side for heart burn, zinc -- there has been a lot of anecdotal and maybe studies around some real benefits around awful these. should americans be taking these drugs to keep themselves healthy. >> with pepcid there are studies whether or not it can be beneficial in patients who are infected nothing is conclusive. there is some suggestion in literature that if you are vitamin d deficient taking it can prevent you from having a bad covid outcome. if you are vitamin d deficient there is no downside of taking a vitamin d supplement if you are at normal levels of vitamin d there is no clear idea it is going to provide a
therapeutic benefit. same with zinc. >> are you worried about the increases cases in europe. >> spain started to look like they are coming down the epidemic curve germany, france spain are increasing you are seeing resurge in infection in europe. also seeing it in the united states asia is largely covid free right now. they have the same seasons many of those countries it is probably a funk of their ability to track and trace and mask western democracies haven't been able to do that and have contended with multiple skfls infection. >> it was interesting, there was a uk study that found more than 0% of people with coronavirus did not have symptoms. the so-called silent spreaders, which is a huge number also i think speaks to the desperate need for testing how can we be reopening this economy, really, eight months into this pandemic without
adequate widespread rapid testing when you have numbers like that as silent spreaders. >> other studies said 20 to 40%. i think probably the number of people who are asymptomatic is probably lower we have more testing in the market they are -- based test we are going to be scaling buy next now -- two other systems, sofa 2, abid right now we are not fitting the right test to the right purpose. you need viable testing -- if you want to introduce testing as another added layer of potential protection in an environment where you are already taking a number of steps and it is an you a steer setting the buy next
in a school, where kids will be kept in pods, kept in masks, they are going to dedense i phi is classrooms, and a negative test result is not going the influence the behavior of that child, introducing the buy next into that setting, that could be another good added layer i think we need to think about using the right tests in the right environment if we are going to deploy them to use as tools to screen the population and screen asymptomatic populations. that's where the challenges are. first we haven't deployed them en masse we also haven't deployed them in the right circumstances. some have done it well the nba has done it well others not so much. we have only minutes left on the session. climbing back towards the session highs. coming up, goldman sachs
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the nasdaq is up 1.3%. individual market movers right now, shares of ge are moving higher goldman sachs resuming coverage of the company with a buy rating the firm says ceo larry culp has moved to make ge a leaner structurally productive company during his two years on the job. zoom video also gaining steam today. a buy rating saying it has one the best of breed of video conferencing tools may going a 2% move on top of an already incredible run for that stock. after the break, oil prices climbed nearly 10% this week as hurricane delta barrels through the gulf of mexico an update on the storm for you next. a quick check on bonds ten year yielding just over.77%. stock slices.
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hurricane delta is threatening the gulf coast let's get to shepard smith with the latest details. >> still moving in, moving at 15 miles an hour straight toward the western end of louisiana this spot right here somewhere between lafayette and lake charles louisiana is about where they think this. thing is historic in so many ways it will be the tenth hurricane to hit the united states in this season that's the most ever it has never happened. in addition, it is hurricane delta, which means we are on the fourth letter of the greek alphabet we have never had a greek alphabet storm hit seasoned somewhere around 7:00 eastern 6:00 local time they except it to hit the coast then go up to the west to matches, and into jackson mississippi and tupelo and the whole way, severe rain this storm right now is maximum sustained winds at 115 miles an
hour they think that's about where it will be when it hits sadly it is going to go over a place that a hurricane represented apart at the end of august that's the city of lake charles, louisiana. this is recent this is shot by us just in the last couple of days because we are following so many people who are trying to recover in lake charles. you see tarps on ever roof it was decimated two locals told me yesterday it still looks like a bomb went off there. and they could get up to 20 inches of rain out this storm. and tornadoes spinning off it is going going to have a rough night. we decided this evening we are devoting the news w me, entirely to this storm. we have the national hurricane center works meteorologists, experts and locals on the ground pull coverage, 7:00 eastern on the news here on cnbc. will of. >> we will definitely tune in, schieppe it is sara. >> hi, sara. >> i hear you are a bit of a weather nerd, which is why you
sound like what you are talking about. they are reliving a nightmare out there. how accurate in general this season have the forecasters been would you say in terms of predicting the path and intensity of these storms. >> they are pretty good. the science has gotten better. but there are so many things influencing there. there is an upper level wind shear that has taken the miles per hour down just a little bit but it still has the storm surge. secondly, this was over about water that was about 90 degrees in the center of the gulf. normally up close it would be as well but it has been churned up so much that the water touches are in the low 80s which is going the take a -- listen, it is the warm water that gives the storm the energy it is like fuel in a car the warmer the water the more fuel it has. it is going 1 miles an hour. it is 55 miles offcoast right now. it will initially hit a swamp and then straight up into lafayette and lake charles,
sadly. we are not expecting great things out of this it is not near leez big as the one that came ashore at the end of august. that was a category 4. we are thinking strong category 2, and minimal category 3 here that's awful and everybody knows it. >> shepard smith thank you we will look for an update from you next hour and of course on the news tonight >> thanks. >> that's shepard smith. less than 30 minutes to go before the closing bell. look at the markets. we are set to cap a very strong week for stocks with another rally. s&pupl up .8%. today's it is consumer discretionary and technology leading us up. after the break, we have seen a slew of retail bankruptcy this is year as the pandemic changes the way we shop. but one former retail executive thinks now the right time to launch a consumer-focused pact he will join us to explain why next [squeaky shopping cart]
welcome back 46 retailers have filed for bankruptcy so far this year, the most in the same period over the last ten years that's according to s&p's global market intelligence. jim cramer is still finding some bright spots of opportunity within apparel lately. he picked companies like lululemon, nike, levi, american eagle and gap as winners that could be good news for our next guest who just launched a retail focused spac. he is former ceo of cole hahn. lots of experience in the fee tail industry. thank you for joining us. >> thank you sara. >> he when think of spac, and the gold rush i think of electric vehicles and technology start-ups and cloud computing. not necessarily retail why is this a good opportunity for a retail spac right now. >> my partner would say we aren't here to do moon shots that being said we aren't
looking to do it as a retail spac but more of a consumer spac those businesses that are not going to make it to the other side it is clear that they have the wrong model or wrong brand with consumers and covid left many people looking for options to raise capital. in convention with mid ocean partners which is perhaps the best middle market private equity firm out there we have studied this base and said how do we empower these management teams through the crisis onto the next step. hence, that's how we came up with the name empower. it goes beyond retail because every brand today has to be a retailer in their own way. >> i know you've got matche from the national retail federation on your advisory board of empower.
what opportunities or categories are interesting to you in consumer which is obviously broad. >> we have tried to narrow it down consumer has grown over the past years at 4.5%. the beauty sector is something we are very, very excited about. i was president of revlon for a point in time. we also broad pamela baxter on admission ocean. we also mixed those talented with board members like mindy grossman were ww, you know, weight watchers. or jeanne bianchetti who created a mighty new york. and how do you bring those people forward in a very, very spectacular way? so we are focused into those things that are moving forward all things measured. thanks that are good for you food ingredients, the things that power up what you are doing
in food. it is really more new consumer with a core into what has been. >> what about any beaten down, cheap assets that might have been suffering, whether that's because of the shift to online that they might have been left behind on or because of covid? would you be attracted to some of those assets if they were very cheap >> if it doesn't have the unit economics and the consumer mindset that's going to take it forward we would rather let that go off to the nice graveyard, you know, that's there in retail that you are seeing this past year we are not going invest in what was. our whole idea and our thesis is, because we have a view into things, that we can really pick out the winners of what will happen going forward for instance i am the lead director on a company called the joint chiropractic we went through the normal dip when we had to close our:ings in
health and wellness, we are the leading provider in that category right now we are back to double digit increases in providing chiropractic care. there are other businesses out there like that. i also chair a company, kid craft, which is a portfolio company of mid oceans. because of the home nesting and taking care of imaginative play with kids, kid crafts has exploded also 70% of its business is done on line. these are the categories and the ways in which we are thinking about unlocking value because a lot of people ran out of money during covid and we will be able to bring that back and then move them forward with great management teams. >> i know all about kid craft. you need to buy toys if you can't send your kids to classes and play groups. >> the best baby sitter out there. >> exactly the spac craze, the gold rush, what is it about, and why is this a good vehicle for what you are trying to do here? when you have access to private
equity money. >> you know, it is interesting when graham and i -- my partner, when graham and i went looking into this we didn't jump into it like a lot of people have done, free money let's do it i am an operator it was all about the company we could help when we studied it, we saw that if we brought great talent along that could unlock this -- if you look at our board we have matt maddox from witness. -- all the people from these different areas, we could actually come in and find the angles and the themes that would unlock swraul and bring it forward. i -- value and bring it forward. there are people who are activists who go into the spac business i don't understand that. why would somebody want to become a partner with an activist that's kind of a little bit nutty. that just means you didn't know what you were doing in the first place and you need an activist to tell you to take it public. and the spac tool is a better
tool to go public. you have heard people on your show and other shows talking about bringing growth to the many when i ran payless, ours was about bringing footwear to the many, but with great style so there are ways that you can do that with the products that we are looking at and the categories that we are looking at i mean i had a phone call this morning with a ceo of a large company that we would like to look at. and he goes, i have gotten so many calls from spac people. at least now i have got an operating person who i know and who i trust. now we have a meeting with them next week. we are not just bankers, we are thinkers. >> keep us posted on that. eager to see where you land. matt thank you for joining us. >> our pleasure to have you. we are up .7% on the s&p 500. after the break, ea looks to score with fifa and disney's new movie skips the theaters those story d nyanma more as we
working within amazon transportation services, i really saw the challenge of climate change. we want to be sustainable, but when you have a truck covering over 300 miles, or you have flights going hundreds of miles, it's a bit more challenging. we are letting the data guide us to the best solution. it's inspiring to try to solve a problem that no one else has solved. that's super exciting. but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding]
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session. up .5 on the s&p up 3.5% on the week. lindsey are we getting a glimpse of seasonal strength or is this all about hopes for stimulus >> i think stimulus in general has been the most important driver of market action over the last several months. it is exactly what stalled the market out in september to be honest so the hopes we have seen and the optimism that we have gotten over the last couple of weeks has helped to push the market higher so we are in going to need to start to see that coming to fruition or coming closer to fruition i think for the market to continue moving higher toward the end of the year. of course there are other thing to contend about as the months progress lick the election, as well as earnings season which starts in earnest next week. >> mark, what do you tell investors to do around this whole stimulus question? >> sara, i think actually the
outcome of the election is going to result in a stimulus package one way or the other it is a function of how quickly after the election or the inauguration and what size it is going to take. i think it does set up a possibility that if the odds are low that we in fact see something put into law before november 3rd that we could hit a soft patch economically and coupled with some of the cross currents it could make for some rougher sliding corrections over the next months. having said that, i think come after january if we don't have any kind of stimulus package put forward we are likely to get one of significant size and that will solve and help to boost risk assets or restart them over the balance of 2021. >> let's hit biotech stocks. gilead getting a boost after the company released final data on
remdesivir claiming it cut covid infections by as much as five days other companies working on treatments for the virus are moving in different directs. amgen underperforming the broader market this week eli lily, developing a similar antibody treatment to regeneron is higher. scott gottlieb told us these are the game changing -- the antibody treatments are the game changing drugs we have been waiting for both to help with severe cases, to help prevent skit to help possibly give it instead of a vaccine in the interim. the problem is we don't have enough supply. he suggested it is too late to mass produce these kinds of treatments in the way that our country needs them right now obviously it is great news, if they get emergency authorization we can start using them more broadly but we just don't have enough of them. >> i completely agree. two things stood out
one the level of positivity he has as to how effective these drugs are saying that a once a month shot could act as a vaccine. you think we are waiting so long for tests on vaccines and they are ott going to be widely available to the middle of next year essentially said it was alternative a vaccine. and as you said, the lack of ability to ramp up production and no quick way to that means it is going to be select in terms of who is going to have ability to night lindsey, what do you make to the market's response to all the virus developments, including the fact we are seeing rising case numbers in the u.s. and we are seeing some kinds of little shutdowns here and there some new york city schools, for instance, around the country, rising hospitalization the market doesn't appear to be too concerned about it. >> i think the positive news on the vaccine that we do get is outweighing the rise in coronavirus cases and shutdowns in different parts of the
country. really, the investors are focused on how a vaccine is going to improve the economic outlook for our country. and that really is the key just what you are talking about, the supply chain being limited for the distribution of these drugs is of real concern on the other hand you have to wonder if it helps elongate the positive or optimistic outcome on the market that these guys could have, as distribution improves or increases over time. that could be read into the mark as a positive rather than a negative. >> mark, do you feel like we have got a glimpse over the last couple of weeks of what the market will do when we do get a vaccine, in terms of what will benefit, which types of stocks and sectors? >> i think without question, wilfred. i think overall i can't help but think that obviously global equities would benefit from the
amplification to already stimulated economic activity that should boost above trend growth because of the lockdowns continuing the recede and a eemergence of economic activity domestically and on a global basis. if anything it would be purely incremental that we could go from some kind of reencroachment of activity as a consequence of receding concerns about the rolling lockdowns whether they are happening on a more localized or regional. i don't think there is any real appetite forring in on more of a national basis certainly here in the united states and to a large degree aboard. i think you are right. the marching ahead of equities particularly in health care and the biotech seggor is investors believing that the efficacy of the amount of effort that has been put toward some kind of a vaccine solution is going to lead to success ultimately once commercialization is developed to the point that i think we are likely to see that before the
end of 2021. in between that and the actual commercialization and distribution of it, that leave as big void in terms of the math the coronavirus could take and as a result probably keeps a bit of an element of uncertainty in the stocks to allow them to remain fairly volatile. >> ea launching fifa 2021. the video game maker has a lot riding on the release. i remember this day every year as a teen. epic game. >> wilfred, it is a big day for you and for gamers why does fifa 2021 matter? it is this company's crown jewel. its biggest and most important game by revenue and number of players. ea higher today but down about 10% from its all-time high
still, keeping that in context it is up about 50% from the march low. ea is having a strong quarter like act vision and like take two he says as so many people are looking for inhome entertainment due to the pandemic >> josh, clearly as you are saying this is a very important game for this company. how do sports games and soccer games do relative to the sort of shoot them up games that we talk about, the other brands, call of duty or all of those sorts. >> for ea, their bread and put remember the sports chachzs like madden and like fifa that's why you will remember over the summer if you were ever on an earnings call with ea they were peppered with questions what is going to happen with sports this the fall there was concern that if the underlying sport wasn't occurring what is going to happen to the video game ea executives said they would
like to like the real games to continue on the field, on the court but they didn't count on it when they look at games like fifa and madden they argued those people are doing so in part because it is a social network a way to virtually connect with family and friends. perhaps that's more important now than ever. >> we have seen it in some of the video game numbers josh, thank you. disney's next pixar film will be the latest to skip the movie theaters >> that's right, sara. soul, a digitally animated movie is going moved from a theatrical release in november. it will be no extra fee for subscribe subscribers. the next big release is warner brothers wonder woman which is
currently set to be in theaters christmas day. regal is shuttering its u.s. theaters indefinitely waiting for more wide releases cinemark and amc are currently operating the majority of their theaters. >> we talked to adam iran yesterday of amc he is opening as many as he can. as we head into the close look at the broad markets. we are in rally mode again, capping off a very strong week for the, ma. as far as the dow, disney was just mentioned one of the dow leaders today. microsoft though is the leader of the pack. up 2.4%. sales force doing well apple. technology is back in favor today. really it hasn't been the top group of the week but today it is leading us higher technology up 1.5% thanks to a rally in chip stocks we will talk about that later. more deal speculation into consumer discretion father,
amazon and other retailers up higher energy, real estate, and utilities, those are the three sectors lower on the day for the week as a whole, everybody is higher, all the sectors within the s&p and the best performer is actually materials material and energy are the two winners on the week. by far, the biggest winner on the week is actually the small companies. that could close up more than 6%, really making a move after lagging pretty much most of the year wilfred there it goes. a strong close, capping off another very strong week for stocks with hopes of stimulus. now that the president says go big, he's on board >> yes, indeed welcome to "closing bell," i'm wilfred frost along with sara eyesen the dow in positive territory for the year, up .2% after a .6% gain today the russel up 6.4%, half a% today, sill down a couple of percent on the year.
s&p up 4% for the week consumer discretionary and information technology the best performing sectors today the big bank will kick off earnings season next week. we will be joined by the ceo of bpnpariba. leslie and i will -- >> jeff, clearly as we know well from you coming on you believe we are in a secular bull market. what about a week like this when we jump 4% on the s&p 500. do you think in a short week we are heated again with so much uncertainty out there? >> no, i do not. we are having a really good year at capital wealth planning we are doing a lat of business with a great firm on wall street janney montgomery scott. i think the market is trading higher i think we are in a secular bull
market i think it has got years left to run. >> was that a lot to mark la sheeny, jeff >> i didn't hear the question. >> i appreciate that i concur i think we are restarted or reset the secular bull market back in march. i think not only does this economic expansion have a long runway associated with it. but accompanying that is i think a tail wind for equities that will even sustain beyond the point at which we see expiration of probably another stimulus package from the government let alone uber easy monetary policy in support of the federal research i like to see the signals you were talking about wilfred which is to say seeing the cyclical pro growth sectors like materials leading particularly small caps.
boosts the economy and the weaker dollar. benefiting from better growth abroad. >> i don't know if you are doing business as well with allians but you should be because lindsay bell is there. lindsey, do you think we are in a bear market giving the run up from an earnings season? >> i worry about what we are going to hear in the outlook perspective. i think third quarter results will be graph. we have seen numbers moving higher we are looking at a decline of 22.8% for the third quarter, which is 3.5 percentage points better than what we were in mid july when the second quarter earnings season period started usually that makes investors nervous because the bar is being raised going into earnings season but i went back and looked at history. two recent times that this same
event happened was in 2018 when taxes were being -- corporate taxes were being reduced and in 2018 when we were still emerging from the last financial crisis what happened, really, was there wasn't a lot of great guidance being given at that time grant it, probably more guidance than we are hearing from corporate management teams these days, but there was still a level of uncertainty in the marketplace about what the economy was doing and what that meant for earnings what we did see is companies came in and beat expectations that were raised going into the quarter. and they were able to perform well but this time around it is going to be all about the outlook. and really parsing through the words that these ceos and cfos say not only about the quarter to date trends but what we are expecting the remainder of this year given almost there is a heightened level of uncertainty when you think about the fact we are going into a period with the election coming up as well as,
you know, uncertainty around stimulus talks. >> yeah, and the virus itself, lindsey. jeff, it is a good question. third quarter earnings that we're about to get, i think most would agree -- you probably would agree are set to look good and third quarter gdp is set to be up 30, 40%. it is a huge bounceback. the question is the fourth quarter. what are you expecting then from here after this big bounceback with all the uncertainty over renewed stimulus, virus cases, so on and so forth >> i think the economy is going to accelerate. i think it is going to continue to accelerate. i mean you walk around st. pete. st. petersburg is booming. i travel actually all over the world. everywhere i go things are booming. so the fact that the stock market is doing great is no surprise and i think the stock market is going substantially higher over
the next few years. >> which sector in particular jeff would you focus on that looks most attractive in terms of risk/reward >> technology. i think technology is the leading sector but basically, you know, i like all the sectors. i'm not really i guess fond of the utilities. but other than that, i think all the sectors are going to do very well going forward >> wait, jeff, you are traveling around, flying around the world right now? seeing a boom everywhere except for nobody is flying around >> that's not the airplanes that i fly on the airplanes i fly on are full. >> are they one seaters? >> really? international flights are full right now? >> i don't know about international. i haven't traveled internationally in probably the past six months. but the domestic flights that i fly on are full. >> let's get a summary of the
roller coaster week we have had for the major averages bob pisani has that for us >> it was a great week we ended on a somewhat cautious note because of uncertainty around the stimulus. let me give you facts on how we did on the week. s&p up 3.7%. great week, terrific over all here two new everyall highs on the nyc. pushing it up higher volatility is lower testimony vix is 25. the volume has been lighter on the updays that suggests there is not a lot of buyer enthusiasm as we move up it is more of a seller's strike. the main trend, the cyclical rally? what does a cyclical rally look like it looks like this it look like infrastructure stocks like martin mayor up double digits for the week. haliburton, oil stocks up 7, 8, 10, 11%. bank like m and t banks. the region big originalal banks had a terrific week.
a terrific month overall gap and some of the big box retailers were up 7, 8, 10%. illinois tool works and industrial stocks, up 7, 8, 9% caterpillar, new high. many of the other ones hitting new highs as well. what is lagging? all the famous work from home stuff we talked about a month ago is basically moving sideways a good example would be paypal paypal is all right this week. it was up a little bit you can see in the last month or so, the last three months it is essentially sideways we have seen the cyclical groups really moving up there is your difference if you want to complain about something. look at the close. in the middle of the day the cyclical stocks were doing great. started out great. then they well in the middle part of the day and the technology stocks came in. the white line, intraday, and the orange line is industrials that suggests to me, guys, a little bit of concern about the stimulus story mcconnell was out making
comments saying we are not sure we can do that that would suggest buy more technology and lighten up on the industrials that were beneficiaries of the cyclical trade overall. have a good weekend. >> you too, bob. >> lindsey, thank you election-related volatility has been and gone already now. >> you know, we did see the vix decline. it got up to about 29 on tuesday and it came down sharply i think to 25 or so today. it does seem like there is a reduced stress or nervousness about the election going forward. but if you look at the future contracts, if you look at november and december those contracts are still very elevated going into the election which suggests there is still a decent amount of uncertainty out there. so i am not necessarily willing to brush off the election unt certainty, the election risk at this point in time i think there is still some
concern out there. >> yeah, i mean, mark, biden polls have shown that he is maintaining his edge and there is a good chance of a blue sweep. when did that become okay for the stock market wasn't there a lot of hand wringing over higher corporate taxes and capital gains taxes and wealth taxes when did it start to be okay to rally in that mode >> yeah, sara, you are absolutely right it is kind of interesting. at first, it was, well, wait until after labor day because the market wasn't start reacting to the election until about three months prior i mean the polls now have been running consistently where joe biden has not only sustained hess lead, he has actually widened it if you look at some of the betting polls, politic.com and so on, you actually see in addition to that you have more -- the majority of betting being made on a democratic sweep a blue wave, if you will now, if this was something that was particularly unsettling for the market that seems evident to everybody that that's where investors -- at least investors
making the bets on whom is going to occupy the white house and congress have already digested that there seems to be a certain level of acceptance around that probability if not certainly a possibility. at the same time, though, like lindsey i can't help but hold a little bit of concern that it seems to obvious and easy at this juncture given the fact that more likely or not what you mentioned sara, which is certainly higher corporate and individual taxes, tighter regulation, and certain rather sizable industries namely financials, health care, a smaller one, but nonetheless energy could come under fire in the cross hairs of a different regime and be treated less favorably than under the trump administration i am not sure that's totally baked in at this point. >> guy, we have got to leave it there. thank you for joining us on the market >> lindsey bell, mark la sheeny, jeff sought. >> stocks surging on stimulus
the support we've had over the last few months has been amazing. it's not just a work environment. everyone here is family. if you are ready to open your heart and your home, check us out. we thought for sure that we were done. and this town said: not today. ♪ welcome back stocks posting a strong week of gains with the dow having its best week in months. and the s&p 500 and the nasdaq's best week in more than three months joining us now, charles swab's liz ann sonders. great to hear from you, as
always thank you for joining us do you think the market already priced in a hefty stimulus deal which is now at the risk of being disappointed by. >> i think it is pricing in a stimulus deal. the question is timing i don't have any greater insight in terms of exactly what is factored in on a day to day basis. but if you -- you know, if you tie it to biden's lead not polls and the high likelihood that absent a deal in advance of the election that that would be priority one and probably at a size significantly larger than what's currently negotiated, maybe you don't have as far as saying win/win, but that could be what the market is banking on, if not now, then later >> we were talking earlier liz ann about the sort of rotation or the cyclicals that led the market this week you are not focused on sector rotation but quality >> right the natural thing is to think about what sectors are going to be the winners in the losers in this environment a lot of sit
tied to election outcome what i think is consistent in defining leadership regardless whether you are looking inside the high momentum sectors the more beleaguered factors is the quality factor someone of the specific factors under that quality umbrella is strength of balance sheet. i think that's a better approach to finding winners in this environment than just making a blanket sector call. >> can you give us any more specifics as to what type of stocks you are talking about >> again, you can find them pretty much in any sector. if you look -- again, regardless of which sector, if you look at performance rankings, it is the higher quality, stronger balance sheet stocks that have done better we think you want to be diversified. you want to have a growth factor bias not just to the growth indexes but have a growth factor bias, but also have a value
mindset. but in particular, quality around balance sheet, low debt to equity ratio. and then some other quality factors which are a bit more subjective in terms of strength of management, and the ability to lead in an industry, pricing power, all of those factors. i think that's a better way to approa approach investing >> as we approach earnings season kicking off into high gear next week do you think earning season stock specifics will be the driving factor for the rest this year or will it be macro factors like the election and stimulus >> i think it will continue to be macro factors but individual stock earnings will matter we did see throughout this most recent quarter a company of dozen companies that had withdrawn guidance adding guidance back into the mix
analysts for the third quarter were flying marginally less blind than they were in the second quarter i think probably their default switch that was still set to keeping the bar fairly low so i think we could have a decent aggregate earning season with maybe some pros and cons at the individual stock level but i still think it is mack owe issues around the election, around stimulus that are probably a more dominant force. know you are not specifically focused on sectors here, but liz ann, what about f.a.n.g. how exposed should investors be at this point given the tremendous rally they have already had and on days like today a broad rally, they lead the charge but also given the fact that democrats are looking to crack down ahead of the election where would you be >> if there is one area where there is bipartisan support in washington right now, it is taking a hard line on some of the big dominant tech companies.
i think the potential anti-trust risk remains regardless of what happens in the election. you know, our advice around those -- we have been calling them the big five on a cap weighted basis is that you want to be mindful of consistently pairing them back. don't try to time a pure exit point but particularly if you are an index investor or that is your benchmark, i think you just want to make sure you are parring back and taking profits in those names there is a lot of comps because the over all p/e for the s&p has hit those levels the largest five stocks back then were trarding at a multiple of 60 and the current big five are traiting at a multiple of 32 that's a difference between now and 2000 reflecting the stronger
underlying fundamentals of those names now. that doesn't mean you want to just let your winners run and have them represent a large percentage of your portfolio which is a risk especially give potential for anti-trust. >> liz ann -- have risen does it suggest that inflation risks are underpriced? >> i am not sure inflation risk is underpriced in the near term. i think the pandemic is more disinflationary than inflationary i think there are longer risks for a pick up in inflation not least being deglobalization and diversification of supply chains which i think could put upward pressure on profit mother-in-law -- or downward pressure on profit mother-in-laws and upward pressure on inflation. i have a medium to longer term worry about inflation. i think yields may be moving up. in reflection of maybe a little bit of inflation concerns but the hope that we actually get
traction in the economy. >> liz ann, thank you for joining us >> thank you both. the tide turning for cruise stocks today as executives dial into a conference call with vice president mike pence we will have the latest on that story straight ahead and as we head to break, you can always watch or listen to us live, on the go, on the cnbc app.
vice president pence hosting a conference call with top executives from the cruiseline industry today seema verdicty has the details for us. >> cruiseline executives went into this meeting ready to share their safety protocols with the vice president who is said to have yufrld a decision by the cdc to extend the no sail rule to early next year now that order expires early this month testing for passenger and crew members and the use of shorter itineraries. close to the end of october the cdc will lift or shorten their ban. cruiselines will bring crew back
to the u.s. to ensure if they get the green light from the cdc that they have staff able to set sail what could change the time line is if we start to see a covid outbreak in any of the sailings taking place in europe they are using the same safety protocols they hope to replicate here in the u.s. the other issue would be a covid rise in florida. yesterday president trump seemed confident they would be sailing later this year. no reason to suggest he was overconfident based on today >> hard to say, will of. the next couple of weeks will be a moment of truth for the industry given the other factors that are part of decision making they are going to be watching the covid case count closely in florida even though they have -- the cruiselines have said they will ensure that they test all passengers and crew. if the case count continues to rise that's going to be a big concern. that's where they want to sail
from, the ports in florida this of course comes ahead of an election, and florida is an important state. that is said to be one of the reasons vice president pence really pushed for the cruise lines to be able to get back to sea earlier rather than later. it is a politically important state and critical to a lot of jobs based in florida. >> interesting perspective seema, thank you. coming up, the urge to merge. the potential you kneel from xilinx and amd for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership.
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another massive semiconductor deal is reportedly in the works josh lipton joins us. >> amd is reportedly in talks to buy xilinx in a move to expand the company's product portfolio. the deal could be valued at more than $30 million and could come together as soon as next week. the stock finished in the red today. 12% off its all time high. still keep in mind up more than 80% in 2020. zi links closed at a fresh all-time high in today's trade, its best day since january of 2019 now up 0% from its mid march low. >> josh, thanks for that do stick with us for more on this and what opportunities lay
ahead for the semiconductor sector let's bring in ed schneider. ed, great to have you with us. >> good to be here. >> joining us as i understand from a park in california. it is a great shot >> yeah. >> this will be a smart acquisition? >> yes, very smart amd is on a surge after intel tripped last quarter and they have done very well with new products their stock is up significantly. it is a perfect time to use that currency to acquire xilinx which gives them a bigger foot print in the cloud the cloud is where you want to be it is a smart move on their part. >> it is also just the latest in a string of very big semiconductor deals this year. so inshidia is trying to buy arm for $40 billion. we saw analogue devices and maxim. assuming these go through from a regulatory perspective where does this leave the u.s.
semiconductor industry what does it look like by the end of the year? >> consolidation is almost inevitable at this point even before covid, growth was slowing in all of these areas. even some of the smaller companies. when that starts to happen they accumulate more cash when you get mar cash then you look at m&a. it puts the u.s. in a good position one we lead the world in almost all of these technologies. second, smart consolidations like this, the company being acquired, xilinx is going to have more resources and access to markets that they may not be able to address by themselves. there are always goof ball m&a acquisitions, look at intel for many of those over the last few years. generally speaking this and the ones that have been recently announced make sense and will make the u.s. stronger in the
sector. >> i think you are going to see a surge in the semiconductor sector over the next four quarters if you recall we started a down cycle in semis let '18, from ti, from vago, from just about everybody who wasn't super focused in the cloud end of this year you saw signs it was starting to turn. covid hit, it confused everything, pushed out orders, et cetera. what you are seeing now, we have four or five significant upside preannouncements this quarter already that semidemand is very strong skrk cloud is very strong, and audio. everybody is surprised it was said the other day we are seeing a big surge in retail or phones because of apple and what is happening with huawei you are in the first stage of a semiconductor rebound that will push into next year. >> i think what other investors are trying to figure out, broader investors, ed, is
whether it is a cyclical tell for the economy, the fact that semis have been in such a good leadership position here there is m&a or whether this is industry specific around things like 5g. how do you answer that >> i think it is wider than that if you look at the specifics of the upside report, broad com, call com, and amd, a lot to do with the cloud obvious low as people have to practice social distancing and stay at home and use zoom, et cetera you are going the see more access to cloud. we have seen that. you are also starting the see industrial demand pick up. the providers pull more networking through and wireless 5g is driving demand in the rf and the base names. you have sempl factors driving upside it is not one sector specific. you will see that when ti reports next week. very, very broad product line. that's a hare binger of what is going to happen in the next
quarter. i think that's going to be a good rrt to. >> the analyst community talking about likely takeover targets that are left? >> you know, i mean, listen, the m&a in the semiis nothing new. we have seen it for a while. it does seem to be heating up. that's no surprise given the environment. interest rates, and valuation. one thing i would go back to quickly. i think you can certainly understand the strategic fit of this of mo amd is trying to expand their product portfolio. they are well-known for cpus and gfus, if you acquire xilinx you move into fpgas, efficient easily reprogrammable micro chips in hot high end markets, 5g also in auto and industrial. the stock finished down. i think that's because some investmentors might flag some risks here execution risks. this is a big acquisition for
amd's team it is a big muscle they have to work also regulatory risk you wouldn't necessarily think of that with amd and xilinx. u.s./china tensions are running hot. some think they are going to get hotter it will be interesting to see how that plays here. >> anybody left, ed, to buy? >> yes, as a matter of fact. broadcom, which is one of the biggest acquisition companies out there, biggest m&a companies out there last quarter the ceo said they are going to be back in the market next year buying main tram software companies you are going the see quite a few more of these before the semiconductor sector cools off late 2021. >> thanks for joining us. >> my pleasure. still ahead. banking on a recovery. the bnp pabas riceo will join us "closing bell" returns in a couple of minutes. es you many different horizons"
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we have been seeing it over the last hour and a half see this last turn right here? that's the last spot it looks to us -- the national hurricane center still says it is headed north northeast. it looks like it may have made a little jog the central pressure has risen the lower the pressure, the stronger the storm it rose up to 96 mill bars that's good. sustained winds are down from 110 to 105 miles an hour that's still very strong i will tell you about storm surge. this is coming ashore 6:00 eastern. 5:00 louisiana time. it is going to be a category 2 between lafayette louisiana and lake charles, louisiana. you remember what happened in lake charles in the end of august they just got beaten up. house after house after house with the blue tarps. this is new video from just the other day. actually i think it was yesterday. and this is -- it still looks like a bomb went off there and
they are still trying to recover and now they are about to get hit again. i want to show you this loop again. 6:00 eastern, 5:00 central, coming ashore ask. lots and lots of rain. storm surge is an issue here, too. most of it is not going to be anywhere near new orleans. you don't have to worry about that probably two to four feet at the mouth of the mississippi about one to three feet in lake ponchartrain no big concerns there. but right along the vermillion pass probably 11 feet, 11 feet of storm surge that means 11 feet higher than the water would normally be. there will be a lot of coastal flooding a risk of tornadoes. but no tornado warnings yet. great news and frankly rare. we will spend a whole hour on it tonight at 7:00 on the news with shepard smith. we have correspondents on every spot along the way of this track. and we have the national hurricane center and general russel honore who led us through
hurricane katrina. >> we will look forward to that on the news at 7:00. as always. the other thing i was reading, possibly ten was thousands of people are already in shelters ahead of this hitting. i guess now that's an extra concern with the virus are we worried about virus spreading in those shelters? >> yes we talked to the governor about this the night before last the governor john bel edwards said they are doing everything they can to allow for social distancing and to allow for meals that are grab and go and that sort of thing but you have got to remember will be the people in lake charles who have been in temporary housing or shelters since august 30th. it is the second week of october and they are about to get hit again. it looks like -- look at this eye. see that eye it is headed northeast fit doesn't hit lake charles it is almost going to hit lake charles. they are in for it again your heart breaks for people down there fema and the red cross will be there for them
if you can donate, if you want to, they can use the help. louis loose has had six storms hit them this season two big storms, including that one back in august it has been rough. >> terrible. schieppe, thank you. we will look for more coverage tonight. up next on our show, big banks gearing up to report results next bnp pa bnpparibas ceo will join us next
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big banks set to report earnings next week with jp morgan and citi group set to report on tuesday. ginning us, the bnp paribas ceo. >> thank you for having me >> a couple of blocks ago we were talking about a particular deal in the works in the tech space. but are you seeing a lot more m is a and a lot more in the pipeline in the moment >> do you mean in the tech industry or in the banking industry >> broadly, in terms of clients across all sectors >> well, it is really sector driven and it really depends on how the pandemic evolves obviously in the sector who have
benefitted in this pandemic, we might continue to see activity there. i think to see a more robust trend in m&a it is really going to be depending on how fast recovery takes place in 2021. >> in terms of recovery, as we look at the u.s. economy, how reliant do you think it is on fiscal stimulus coming in the next couple of weeks or months >> well, you know, for sure. i think there is no debate by the way, in the united states -- and it is a similar dialogue in europe that there is going to be a need for more fiscal support we are -- we have still uncertainty. you mentioned the u.s. elections. but we have an ailing economy. we still have no vaccine it is going to have to be widely distributed. and fiscal support will still have to take place the question is how deep, how
broad. it is all going to be depending how long the pandemic lasts and how fast we can distribute and develop the vaccine. >> what are you seeing in the u.s. economy in the loans, in small businesses lenders we are 3% off a record high for the s&p 500. does that match up with what you are seeing >> well, i think we have seen at bnp paribas we have two kinds of clients, the larger one who have access to capital markets. it has been easy a funk for them to access capital markets to do capital raising or liability management as you highlight sara well the smaller enterprises, mid caps have been more challenged because they don't have this access this is where the. >> abouting industry had to play a role extending lending by the way, participating into
some of the government programs at bnp pay rooba in the u.s. we have been participating in the paycheck protection program. we processed 18,000 applications, converting into $4 billion of lending we probably supported and protected half a million jobs doing so then that's the way the smaller enterprise have been supported here. >> clearly, the fed said recently it excepts to keep rates very low for quite some time with your knowledge of how european banks have had to endure incredibly low rates, even negative rates in europe for the last decade or so, are you fearful that margins will be pressured in u.s. banks for the next five or ten years >> it is clear that a low rate on government for banks is not the most favorable for
government we have been very used to navigating -- well not only low rates but negative interest rates for many years and we are pretty well equipped mother mitt gant for banks vis-a-vis the rate environment is being diversity in terms of activities and in terms of geographies. that is something that really helped us develop and grow activities sustainably and profitably >> how are you guys planning for the u.s. election? and increasing likelihood that joe biden wins and we could get a democratic sweep, which would totally change things in washington how would that impact business, the economy, if you are to believe the polls? >> really, as it relates to my skplints as it relates to u.s. elections -- but this is only one of the uncertainties that is today in existing. their main focus has been anticipating or managing
volatility and they have been very active in looking for support and help in terms of hedging, in terms of protection strategies. we have been very active as a bank by the way providing solution, hedging solutions across commodities, but more specifically rates, currencies and liquidities. >> i think you have 14,000 staff here in the u.s. of course many more than that globally what percentage are back in the office do you see your corporate property needs being significantly lower in the medium to long term? >> well, you know, wilfred, in my position as ceo the absolute priority is the protection and safety of employees. during the pandemic we are as high as 95% working from home. we have started a gradual return to the office. but as we speak we are still 80% of our staff still working from
home we have asked, you know, stuff working in some of the critical areas such as sales and trading and payments and clearing to come back where there is more in-house execution but for the time being based on some of resurgence that we can see here in the united states, we are going t >> thank you so much for joining us >> thank you for having us >> up next, your wall street look ahead big week we will give you a rdounwn of what every investor needs to watch for. coming right back. i have an idea for a trade.
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taking the weekly returns for the s&p was above 9% cyclical stocks, likes of banks and energy company that are heavily weighted in the russell 2000 >> materials for a change, up there with energy. amazon's prime day and apple, highly anticipated event we will get earnings from citigroup, chase, amazon and delta. morgan stanley is reporting thursday look for a new outlet on the global economy tuesday we are expecting that to be improved a little bit because the forecast wasn't as dire as
we heard from the imf chief this week but expect plenty of calls to do more from the fiscal authorities. the big question is what will the bank earnings look like. >> a quarter of a quarter eps should jump significantly because we are not expecting as much loan loss provision bill. year over year, still quite a big decline in eps there is a real snapshot of where we are according to a quarter ago, but still worse than where we were a year ago. the pressure on net interest margins, probably in a quarter offset by loan loss provisions but what they think is baked into the level of preserves will still be focused on gray even if the numbers are down
j.p. morgan paid a big fine for spoofing charge. ci citi has paid a fine and announced a change in ceo. a lot of moving parts. and i would add to that, a strong share price performance over the last ten days or so they had underperformed the last ten days or so, but that became stronger after a strong share price performance. >> what will also be interesting -- and we got a preview of this when we talked to morgan stanley this week -- the outlook on the economy and how badly we need stimulus and whether we need it before the election or after. it is not a disaster if it is not before, but get it done.
it will be interesting what they are seeing in the real economy given their exposure to small businesses and real estate which have had some painful spots. and retail sales friday, the consumer is a real question. with the bump up and some of the other stimulus measures, are we going to see that in the spending data. >> lots to come next week. but before that "fast money" starts now >> this is the big show. tonight we have jeff mills, steve grasso and brian kelly a semi-charged kind of deal. shooting higher on mega merger news how to play it plus our call of the day goldman sachs says buy general electric see if our traders agree>>