tv Worldwide Exchange CNBC February 3, 2021 5:00am-6:00am EST
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yellen set to convene regulators to address the recent market volatility from recent traders and those short squeeze stocks. and democrats looking to maybe go it alone on covid relief after rejecting the gop's $600 billion proposal. it is wednesday, february 3, 2021, and you are watching "worldwide exchange" right here on cnbc. ♪ a little dire straits on this hump day for you i'm dominic chu in for brian sullivan here's how your money and the global markets are setting their day up we could be poised for more gains at the opening bell. right now, futures are implying a 45% rise, modest for the dow, an 11% rise for the s&p and nasdaq up by 80%, driven by a number of big tech names in the premarket that are helping the action all of this after stocks rallied
for a second day yesterday, with the dow gaining 475 points, its best day since november. so far that blue chip index is up more than 2% this week. bigger gains, though, for the s&p 500 and the nasdaq, which as you can see are up about roughly 3 to 4% for those indices. a very good start to february after a rough one for the month of january we are also watching the miss of silver amid that social media driven buying rally that we saw over the last couple of days prices plunging more than 8% yesterday, coming down from 8-year highs silver, $26.79 we were above 30 at one point over the last couple of days up 1 1/2% thousand still, though, that spike catching a lot of attention for traders out there. we want to take a look at the bond market, yields on the ten-year benchmark treasury note, slightly higher, a hair below 1.22% or 12 basis points and 1.89, the
last trade for 30-yearlong bonds on the treasury side of things world wide, joumanna bercetche is in our london newsroom with a look at the early trade in europe it's somewhat positive but we're off those session highs, right >> that's it, dom. green is the team over here in europe a lot of green behind me gains in the early hours of trading and also for the first couple of days of february as well, in line with what you are seeing on wall street. the focus is company earnings. we're getting a slew of them reporting this week, and so far the report cards have been positive ftse 100 in the u.k. up about 3/10 of a percentage point, and germany, up about 1/2 percentage point. good results out of the seamans industrial giants over there the focus in europe is in italy. the ftse, the i talian index is up 2%. the president has summoned mario draggy to come in and have a
meeting with him today to discuss the possibility of forming a national unity government this would put mario in a prime minister role, and you can see italian banks behind up anything from 4 to 5 percentage points. italian bte yields down about 8% as well. people are taking the news positively, and some people are calling it, dare i say, the super mario effect. >> i get it. it's so funny to hear mario's name talked about so much after his role at ecb. i'm curious because you're down there on the ground in europe, how much traction do you think this is going to get in terms of a story about mario possibly coming back? >> i think there's some real legs to this story we were speaking it our italian correspondent just an hour ago, and for the most part, we do seem to have political backing from most of the parties in italy that would need to give him support.
the news is positive the meeting is formally taking place at midday in rome, 11:00 london team. we will hear whether or not he decides to take on the role, which is another consideration as far as he is concerned. one thing i would note for the u.s. viewers, the president is set to step down in 2022, so if mario draggy takes on the prime minister role now, there's one question as to whether or not he could then take on the presidential role in 2022, so that could be one of the limiting factors in terms of his own decision making but of course good news for the markets. >> a lot of moving parts there joumanna bercetche live with the latest effect there and the super mario effect thank you very much for that. to your morning's top stories and the big headlines in the business world here. the surprise announcement of jeff bezos decision to step down as the amazon ceo. the company says bezos will make the move in the third quarter transitioning to about executive chairman role of the company's board of directors
bezos says he will stay engaged in important amazon projects but will also focus on other endeavors, including, yes, his earth fund and the blue origin spaceship company. bezos will turn control of amazon over to its top cloud executive, andy jassy. he has led the company's web services team, which continues to drive much of amazon's profits. since its inception. in addition to navigating the operations of the company, jassy will also be tasked with navigating amazon through yes, a wave of antitrust pressures from regulators and lawmakers in washington, d.c. news on the c suite shake up came amid amazon's fourth quarter results, earnings of more than $14 per share, and revenues of $125 billion topping expectations, the company is getting a boost from holiday and pandemic shopping. it amazon web services cloud division reporting a 28% jump in
revenue for the quarter, and believe it or not, that was below some expectations. shares right now, you can see they're off about one quarter of 1% $3,371 per share in the premarket. shares ofalphabet surging following its quarterly results. earnings and revenue surpassing analyst expectations while the results showed a strong return to growth in its core advertising business model following struggles amid the covid outbreak, and revealing the cloud services business lost a billion dollars during the 4th quarter as the business remains in investment mode alphabet shares meanwhile up 7%, getting right towards those record highs back to broader markets now, futures on the rise this morning as reddit mania in the markets appears to be cooling down at least for now. joining us now is luke lloyd, investment strategist at strategic wealth partners. i got to say let's bring on the parade of investors to break down what's happening. was there anything that worried
you as an investment strategist about the stuff that we were seeing or was it more isolated this your mind . >> it's definitely more isolated when it comes to what we have seen with the smaller cap names like gamestop, going up to $500 a share. what i want to hit on first are retail investors pumping up these names. we shouldn't discredit, stocks like tesla, roku, all have been home runs, retail investors have been getting publicity because of crazy runs in small cap, and micro cap, with extreme valuations stocks have been squeezed and gone crazy many times in history. i'm not saying you should buy them, they're going to come back to earth what i am saying is it this isn't anything new more people have access to the markets, more than ever, the technology, mobile trading, commission free trading. we shouldn't discourage participation. these investors, they don't know how to exactly trade right now i didn't know how to trade when
i first started. i had to learn fundamental analysis, technical analysis this is a good thing with more participation in the markets i think you have to tune out the noise. >> more participation in the markets. this is something i have been trying to hammer home with people i speak with on wall street do you feel on balance among the retail trading community that has been trafficking in names like gamestop and amc, do you think more of those traders or investors in your opinion made or lost money during the recent volatility >> the majority of them lost money because they're late to the game, right, so they're coming in way after it's been pumped and that's what we have seen with market metrics in history. a lot of investors from the behavioral finance errors make the errors going in late, and chasing the hype, and by chasing the hype, that's never a good thing. i think these are a lot of good learning opportunities that investors are making i don't think they're going to make the same mistakes in the future, or they're going to learn down the road.
20, 30-year-olds are investing before their parents or grandparents did i think it's great they're getting started early. if they're losing money, who cares. in the long-term, this is going to pay off by learning from their mistakes. >> learning from their mistakes is costing people hundreds, sometimes thousands, even more we have heard stories about investors losing millions of dollars over the course of the downturn we have seen. let's talk about the traditional construct of investing, there seems to be a return of what's working in the markets over years, large cap, mega cap technology, amazon and alphabet, do they give you more confidence in the market right now? >> they do amazon, alphabet, apple, and microsoft, they all make up, you know, 20% of the s&p 500 index, so, you know, with that high of a waiting in technology leading the way for the future, that's where you want to be, and earnings are amazing right now they are crushing the earnings report but you have to be selective with where you're buying the dip right now buying the dip is a broad term some states are shut down,
stimulus is being given out like candy. some stocks crushed it, others are not. alphabet, amazon, google, all of these different companies, they are winners, and i think you have to stick with them. people were itching for the stocks that have taken off record levels of cash on the sidelines the past two, three, four, five months, markets have gone up, and a lot of people are looking to buy the stocks, they continue to go up. if they do dip, deploy the capital. >> we'll see if the small caps, luke lloyd at strategic health partners, thank you very much. now to washington, d.c. where congressional democrats are pushing forward with the bid to pass the $1.9 trillion covid relief plan without republican support. tracie potts joins us from d.c. with the latest. good morning. >> good morning, everyone. democrat says they are ready to go it alone. the president setting a deadline for this, but also talking about immigration and insisting his
orders are not an attempt to make an end run around congress. by the way, he was on capitol hill last night. >> president biden at the u.s. capitol paying respect to the police officer who died in last month's riot as the president does battle with lawmakers here, the white house says he wants to hammer out a covid relief bill by march 14th, just before extended unemployment runs out >> the risk here as he has said many times is not going too big, it is going too small. >> democrats are already making moves to pass biden's $1.9 trillion stimulus without republican support >> we are not going to dilute, to dither, to delay. >> we're off to a totally partisan start i think that's unfortunate. >> the administration's covid response team announced they are increasing vaccine shipments to states and rolling out a million doses to thousands of pharmacies
beginning next week. but americans mae migrants alrey headed toward the southern u.s. border that the biden administration is trying to change things and make things better at the border in terms of requesting asylum but now is not the time to come, dom. >> tracie potts, live in washington, d.c. with the latest there. thank you very much. when we come back on the show, shares of chipotle are under pressure this morning after its 4th quarter results miss expectations what the company's ceo is saying about that quarter
plus, under armour reducing its presence with the nfl. new details on that decision coming up. and oil prices continuing to climb amid a wave of bullish headlines. we break down the road ahead for crude and gas line prices as well a very busy hour ahead as "worldwide exchange" returns after this break i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio. i refinanced my student loans with sofi because of their low interest rates. g us get our money right. i refinanced my student loans with sofi ♪♪
you need to keep a watch on. first of all, internet related stocks, especially the large and mega cap ones, in light of amazon and alphabet's results after the bell yesterday, you can see one of the etfs is the first dow jones internet tracker up 57% over the course of the last one-year period, out pacing ti ticker iwm, up 31% small caps have been gaining steam as of late right now, we are seeing a bigger surge in the latter part of the last couple of weeks in some of these big internet names. maybe there's a return back to the favorability some investors find in names like amazon and alphabet, and microsoft and other big tech names involved in the internet also watch what's happening with some of the other short squeeze stocks, the meme stocks we are seeing like gamestop and amc after the massive rallies we saw, we are seeing a bigger pull back in those names here gamestop and amc up massively,
off of their highs by quite a bit. normalization coming back to the markets. if you're looking for a reason why, professional investors and traders out there didn't think gamestop and amc phenomenon was too crazy and would have systemic risks, checko out what' happening in the credit markets. the high yield etf, ticker, hyg, the reason it's important is it tracks the junk bond market or high yield debt. over the course of the year-to-date period, it hasn't done that much, flat on the year, usually in times of sys systemic stress, we would see a lot more involvement in the credit market specifically with junk bonds or high yield debt. which means, maybe we're not going to see a spill over effect from some of the short squeeze spots on the rest of the market. we are following new developments following ant groom. bloomberg is reporting that the company and chinese regulators have agreed on a structuring
plan that would turn the fin tech giant into a holding company. the report says the plan involves putting all of ant's business into the holding company including its technology offerings. it adds an official announcement could come before the start of the chinese lunar new year which happens next week. newly minted treasury secretary janet yellen looking to turn on the recent volatility in the stocks we just mentioned. details on the moves she's looking to possibly make coming up after the break. today's big number $1.7 trillion. that's how much 5g deployment could contribute to u.s. gdp over the next decade, according to the boston consulting group the investment in infrastructure isroct pjeed to create up to 4.6 million jobs
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welcome back let's get a check on this morning's other headlines. nbc's phillip mena is in new york with the latest good morning, phillip. >> hey, dom, good morning, an emotional and rare honor overnight for the capitol police officer slained during the insurrection that happened four weeks ago today. the remains of officer brian sicknick lie in honor under the capitol rotunda this morning he is the fifth civilian to receive that distinction
president biden paid his respects last night, holding his hand over his heart as he stood near the officer's urn alongside first lady jill biden. he will be laid to rest at arlington national cemetery later today. the northeast is digging out after that massive winter storm. the places hit hardest were buried in nearly 3 feet of snow. areas of new york city saw a foot and a half, which was enough to postpone 1,500 vaccine appointments. and the golden globes is going coast to coast tina fey and amy poehler will be presenting the event at two separate lotions fey will be at rockefeller center it will be the first time in the show's history that they will come in different places a tough year for cinema, but the show will go on. >> the virtual stuff continues.
still ahead on the show, much more on this morning's top story, which is jeff bezos announcing his exit as amazon ceo. our own robert frank looks at what's next for the tech titan, and how that could impact the company's stock. >> and later on today, cnbc's capital exchange event series is back kayla tausche leads a critical conversation about the new economic agenda with biden economic adviser jared bernstein, and also business round table president and ceo joshua bolten. register now to join @cnbcevents.com/capital exchange bievt. "worldwide exchange" is back in a moment (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm. a hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place.
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good morning, wall street. looking at green arrows as the bulls look to make it three wins in a row our big corporate story, jeff bezos is stepping down as amazon's ceo we'll talk about what's next for the retail and cloud computing giant. and alphabet shares jumping this morning after the google parent company posted better than expected results on strong advertising growth wednesday, february 3, 2021, and you are watching "worldwide exchange" on cnbc. ♪ meet the new boss same as the old boss ♪ >> the who, welcome back to the
show, i am dominic chu in for brian sullivan this morning, and here's how your money and investments are looking as we are halfway through the 5:00 a.m. eastern hour stocks pointing to modest gains at the open bell s&p higher by 11, the dow by 35 points and the nasdaq higher by now 85 at this point this is all after stocks rallied for a second day yesterday with the dow gaining more than 475 points its best day since november. so far that index is up more than 2% this week. we've got bigger gains for the s&p and nasdaq, which are up 3 and 4% respectively. we also want to get a check on some of these stocks at the center of the short squeeze volatility as of late. you can see their gamestop up 11% premarket to $100 even the big figure, a share, amc entertainment, costs up almost 50% as well. making headlines this morning, treasury secretary janet yellen is calling a meeting this week for key financial regulators she wants to talk about the
market volatility resulting from retail trading in gamestop and other short squeeze stocks we just showed you. shares of chipotle trading lower after earnings and revenues fell short of analyst revenues brian anichols was on mad money last night >> there was that surge of covid. it demonstrates the resiliency of chipotle, and the power of our digital business that we can lean on when we need to. i'm really optimistic about 2021 and when we get to a place where we can start reopening dining rooms. >> those chipotle shares under pressure this morning, and under armour is reportedly ending its on field licensing contract with the national football league the decision comes amid a restructuring of the sportswear maker. the financial times reports the financial value of an on field licensing agreement is between 10 and $15 million per year. well, now to the latest out
of washington, d.c., and those ongoing stimulus negotiations. ylan mui joins us with the developments there, and new analysis of president biden's 1 $1.9 trillion plan from the nonpartisan pen wharton model. what can you tell us >> dom, democrats' mantra for the next covid relief package is to go big. the new analysis out this morning suggests that may not be the most effective use of money. the three main components of direct relief under biden's plan are $1,400 stimulus checks and the earned income tax credit together they represent a massive increase in federal transfer payments during this pandemic, and the nonpartisan pen wharton model estimates that literally almost everybody outside of the top 25% of the households would enjoy some sort of benefit the lowest income households would see the biggest boost. the analysis predicts that every one of them would get some money and the average benefit would be
$2,505, that's more than a 50% increase in after tax income, but high income households would also get money from uncle sam. the pen wharton model estimates a third of families in the top 95 to 99% of households would still get thousands of dollars in benefits and their projected average is $4,265, though that only represents a .5% increase in after tax income. this bolsters arguments by republicans that the $1.9 trillion covid relief package from democrats is not really that well targeted and the downside of that is that there's a big increase in the national debt. dom, this analysis finds that the debt could under cut the benefits of fiscal stimulus not just for next year, but all the way through 2040 back to you. >> ylan, what would, then, be the democratic response to this data, especially around the pen
wharton budget model >> so the first thing that they have been saying is that, you know, even people who make more money, who are not in that lowest income bracket, might still have lost some sort of income, and they deserve help as well the other argument here is that they're willing to cast a wide net to ensure that nobody falls through the cracks there is a political argument to be made that by giving money, and helping out sort of those middle class families and not just the lowest income families, that is something that is politically popular, and could boost democrats' political fortunes in the future the one thing that they want to avoid is some vision of class warfare where it's only the people at the bottom of the scale who are getting helped out, and frankly, dom, middle class, depending on where you are in the country could mean a much higher income in some places and a lower income in others. >> context is always key thank you for bringing us that context. thank you very much, we appreciate it. now to that story captivating the corporate world, jeff bezos, one of the world's
richest men depending on the day is stepping aside as ceo, being replaced by andy jassy, announcing he will become the tech imgiant's executive chairmn robert frank joins us with more on the decision. you watch the stock market to see tesla and amazon stock to see who the richest man in the world is is it jeff bezos, is it elon musk, so what's driving this jeff bezos decision? >> yeah, this morning, it's elon, but look, these guys are neck in neck, just around $2 billion, and right now, you could call it jeff bezos 2.0 with a new partner, massive new homes in l.a., new york, a new physique, new wardrobe, jeff bezos was reinventing himself before officially stepping down as ceo of amazon you remember in 2018, he met lauren sanchez a former tv news anchor and helicopter pilot who has been by his side on trips to
india, wimbledon, oscar parties, fashion shows and the big meeting with the french president last year. bezos bought the beverly hills estate last year for $165 million friends say the two prefer to spend their time in l.a. rather than seattle he also spent $96 million on a collection of apartments and a building in downtown manhattan, and just finished renovating his mansion in washington, d.c., which he bought for $40 million. now, with a net worth right now of just under $200 billion, basically tied with evening, bezos will say, or does say, that he will now spend time on the bezos earth fund, his day one fund, blue origin, that's a space company, and of course "the washington post" where he's now deeply involved in finding a new executive editor and he said in a statement, i've never had more energy. this isn't about retiring. i'm super passionate about the
impact i think these organizations can have dom, so it really will be a second phase he's only 57 so he's dgot a lot of life ahea of him, and the lot of things he cares about beyond am, and i think that's partly behind this decision. >> robert, you hit so many key points there the first thing when i saw those headlines cross yesterday was in my mind, jeff bezos has already been doing all kinds of changes in his life. it wasn't just the divorce it was a lot of other things happening. i'm curious, in your opinion, you're the wealth editor on cnbc, you follow these billionaires how much of this decision was driven by the fact that there is a true space race in the private sector right now and elon musk in many ways is winning it >> he is winning, and these two are very competitive from what i gather, they really don't like each other much. so i think, look, we know that jeff bezos, as much as he is
philanthropic, as much as we see him enjoying life, he's fiercely competitive. i think that's an important point. if you look at blue origin rs they have made advances but they are not there with spacex in terms of where they have gone in space, how far they have gone in space, and from a marketing perspective, they don't seem to be on the map the way spacex is, so i think that's important. i do think he also cares about the day one fund, which is homelessness and education, and the earth fund, which is his $10 billion commitment to climate change i think all of these things, including "the washington post" matter to him, both from a competitive and from a social impact point of view, so i think that is part of this decision. >> i mean, that brings up a great point. you know, jeff bezos has come under some criticism, not being more philanthropic and whatnot we know a ltot of workers rights organizations have challenged him in amenazon, how does that
dynamic change with this particular move? >> people love amazon, but jeff bezos is perceived, perhaps as not as popular so i think, you know, you harken back to bill gates bill gates stepped down from the day-to-day operations of microsoft, became very philanthropic and has since become, you know, a sort of figure head in the philanthropic world. we can see that with jeff bezos, giving 2 billion today one his ex-wife gave away 4 billion directly last year people said jeff, where are you, your ex-wife has given away more in one year. he's pledged a lot, and she actually gave it away. i think part of this is image building, and improving, and also living a different kind of life he's enjoying life. >> robert frank with that big move there by jeff bezos, a story we will be following closely all day. we'll see you on the course of our day side audience as well.
thank you very much, robert frank. for more on the leadership shuffle at amazon. joins by dan, a familiar face to cnbc viewers let's take us through this narrative here does amazon change immensely now that jeff bezos is not chief executive, and just the executive chairman. >> bezos leaving as ceo is a historic day for tech. if you look at jassy getting a nod, they're doubling down on cloud. this is amazon, especially with what we have seen from microsoft gaining more and more share and we're seeing in the growth numbers, jassy, this shows directionally where they're going. that's the focus for the street, and now with bezos no longer ceo, you start to see a little bloom come off the rose as a broader issue, especially to go up against microsoft and cloud jassy, a smart pick in terms of where he's come from.
>> he's not out of left field. there were many experts expecting that jassy at some point, maybe not as early as now, at some point would take the reins because amazon web services is the massive player in cloud computing, driving the profits at amazon and the growth there as well. for amazon, do we see them five years from now, as less of a retail company i go to their web site every day to look for stuff to buy. >> newscast the head on. this is them focused more and more, dive into the deep end of the pool in cloud. they have obviously built the whole industry but you look at microsoft, google, ibm, others, starting to narrow that competitive share, and i think that's the signal here you know, jassy obviously is going to continue to be the torch bearer when you look at cloud and the arms race happening in cloud, microsoft is narrowing the gap we saw that even in the results last night jassy definitely has hurdles ahead, but he definitely is the
right fit in terms of the street to take this to the next step. >> how much of a risk is regulation and congressional action for amazon? what will andy jassy face that jeff bezos hasn't? >> i think it's a broader risk across the board in tech i think viewed as a contained risk, and i think you're seeing that from apple to amazon and others, but no doubt there's going to be a lot of time spent in the beltway, either in person or virtually, as you look at faang names, you look at microsoft, you look at broader tech, the stronger are getting stronger in this environment that's what ultimately is leading the market higher, but that becomes a double edged sword, more and more of a spotlight on the area code, and it's something all of these tech stal stallworths are going to have to compete with. >> if you had to pick one, you can only invest in one stock, alphabet or amazon oever the net
year to three years, what would it be. >> in terms of cloud sector, that continues to be the focus you look at amazon as well as amends, microsoft. top faang name is apple because of the super cycle this is fueling the tank for the bulls in terms of tech stocks what we have seen over the last week. >> do you like alphabet's results? >> it just shows a broader ad rebound. that's been maybe a bit of a, you know, negative that we have seen over the last year, and now you're seeing that broader rebound and look at overall faang complex, plus microsoft, these are goldilocks tech earnings, i think, drives the market higher. we think tech stock is up another 25% this year. >> dan ives at wed bush, thank you. oil prices with the head of energy research at goldman w.chs, wti crude, $55.12 right no stay tuned, "worldwide exchange" will be right back after this.
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get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again. welcome back to the show oil prices are rising today after hitting their highest levels in about a year yesterday. the market being supported by industry data showing a surprise draw down in u.s. inventories. analysts pointing to an assessment by opec and its major allies together known as opec plus, the global oil deficit this morning showing output cuts are working to bring the market back into so called balance. let's get more insight with
da da damian, is oil justified with the gain we have seen over the last several months? >> we believe so we actually think oil prices are heading to $65 by this summer. there are three reasons while oil will rally further, first, vaccines, you know, slow rollout but a positive impact on demand, second, the policies put in place by government post the covid shock help oil demand in terms of income distribution, green capx, and third, and probably the one that will last the longest really is the supply under investment that we now see around the world, so we've seen fast gains this year the market is rebalancing quickly. and so we expect higher prices will be needed later this year to get the supply to restart >> so what exactly is the main driver i mean, we talk oftentimes about the imbalance in the markets right now. we talk about supply concerns. we talk about demand concerns.
which are the overriding once driving the trade right now? is it the idea that supplies are being managed properly out there, or demand right recover faster than some people thought? >> it's actually both. if you look at the last three months, for example. the demand story hasn't been great. we have seen the return of lock downs, demand growth has stalled and the supply side has dominated. it's the cuts, of course, but it's the signs of underinvestment, we're seeing production disappointments, pretty much everywhere around the world, latin america, asia, africa as we look to the next three, four months, i think the demand cycle prevailed, right, with vaccines, warmer weather, you'll see an acceleration in oil demand, and vaccines do matter a lot for oil, right 75% of international travel is still idle vaccines allow for that to restart, then you get the big impulse. the question at that point is once demand rebounds, can supply follow, and that's the difficulty, right, geologically,
it's hard to turn production on and off. and so the deficit just gets bigger and bigger this year, and by the summer, you've normalized excess inventories, you've got a long way to normalizing capacities, the two ingredients necessary for that reset higher in oil prices. >> so you said that it's not easy to kind of turn on and off the spigots, i mean, i understand kind of the logistics behind it, but these countries have been kind of ratcheting down production for months now, maybe even a year plus at this point, is it that hard for them to bring supply back online. it seems like everyone is itching to do that. >> the desire definitely is there. think about opec's two mandates, help in the short-term rebalancing, but raise production to support fiscal revenues next, and you could see whether it's the ue, russia, this eagerness to ramp up. the question is really about the ask, right, if we think about
our demand recovery, it's roughly 5 million barrels per day between now and this summer. opec will struggle to achieve that, right, that would be more than 30% larger than their largest production increase over four months since the 1980s. because, you know, after less investment, we need to drill more wells and, that does take time over time, they can achieve it but i think the core point is oil is a physical market so if they're late by two months, you just end up with tight physical market. the key driver to higher prices, and that's starting to already show in the oil market, right, so if you look beyond just the price itself, oil gives thermometers on the rebalancing, the shape of the curve, physical price, and knows actually today already point to a fast tightening market. the desire is there. the capacity is there. it's really the velocity that i think will struggle to meet what will be a large demand rebound.
>> damian courvalin with goldman sachs with the energy outlook. we appreciate it. stocks looking to make three wins in a row as futures look to build on momentum. tiffany mcghee lays out the companies she's watching amid the recent gains if you haven't already, subscribe to our podcast, "worldwide exchange" every day in audio format if you miss us live on the air. check us out on apple, spotify or whatever podcast app you choose we'll be right back after this break.
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advisers, i'm the first afro latina to have a firm in the country. well, february is black history month, and we are honoring some of our cnbc contributors that was pivotal adviser ceo and chief investment officer tiffany mcghee with her personal story about taking risks, and tiffany now joins us with more on the market's day ahead thank you very much for being here with us tiffany, i know that you are tweeting about your green or your yellow juice this morning in addition to your coffee, so the breakfast routine. we know you're up early. >> yes . >> what is it that's caught your attention this morning as you're sipping on that yellow juice and coffee what is it about the markets that kind of gets your attention? >> yeah, so it really is yesterday. so one of the things that i'm really most excited about is uber's kind of acquisition of drizzly. you know, the ceo is actually on cnbc yesterday
both ceos were on cnbc yesterday, and you know, uber, one line kind of sticks out in my mind, ceo of uber says that if amazon owns next day delivery, uber wants to own next hour delivery. and that's exactly right you know, i look at the difference between an uber and a lyft, and i have said it before, uber is not a ride share company. it's a tech delivery company and they want to be the company that brings everything to your door, and you know, they bought -- they did this kind of really cool pivot and bought one of, you know, uber eat's biggest competition, post mates in mid to late 2020, and now with this purchase of drizly, they keep doubling down, and i'm really excited about the future of uber. >> many have made the case that uber is not a ride share company, it's a technology company, a service company that provides a platform for dispatch and everything else. what exactly does that say about
the valuation of the actual kind of market value that it can grow into over time the bullish narrative around uber has to center around the fact that their total addressable market keeps growing the more they add on to different businesses, right? >> youabsolutely yeah and we tend to talk, you know, on cnbc about valuations and what makes sense, and really relative to these companies relative to like companies, and to the median s&p or things like that, and what i'm looking at is, you know, uber's competition. it's getting harder and harder to kind of value companies these days we're kind of in this intersection of technology, and we're still kind of in this global pandemic, right where we have economies that are still sluggish and how do you value that, you know, how do you value a company like uber that is really uniquely positioned to do all of these things, and what i think is very interesting with uber
is, again, it's not just ride share, and it's not just, you know, a food delivery, but because they have so many different, you know, spokes, if you will, they're kind of bullet proof, right it doesn't really matter whether we're in a global pandemic or whether we're not in a global pandemic, right, they're able to kind of weather the storm, and again, they just keep kind of doubling down. this traditional idea of valuation, i think is going to be a little bit hard to do here. >> tiffany, it's fair to say you're an uber bull. we can see that right now. there are people that don't agree with you as much i'm curious what other picks you have out there uber doesn't make a portfolio, what companies are you looking at to fill things out? what are you bullish on? >> yeah, so i really look at 2020 as, for a lot of industries, kind of like a clearing of the deck, so you take like the restaurant industry, for example, $150 billion kind of lost in that industry. unfortunately, so many
restaurants really going out of business and so it's really the stage is set for certain companies to really do well and dominate, and the companies that are doing well are the companies that are using tech to get, you know, products to their customers, to get food to their customers, so a company like starbucks i put in that category who is using like kind of this mobile app, i call it like the vip line, if you will, pre-pandemic, and now that they were kind of able to kind of weather this storm, i know they came out with earnings, missed a little bit, but i'm not really concerned about that but, you know, they're really, you know, harnessing the power of technology to continue their business, to do their business more efficiently also, the loyalty programs give so much data about their customer. >> sure. >> to starbucks, so over 20 million people in their loyalty program, and helps them develop sales and marketing strategies
good morning, the february rally is rolling on this morning. stocks pointing to a third straight day of gains as the trade and the reddit hype stocks says here remains volatile i guess that's one word for it after yesterday's grubbing shares at amazon, a shake up, amazon's jeff bezos announcing he's going to step aside as ceo. everything you need to know about his replacement is straight ahead maybe not everything, but some things. treasury secretary janet
yellen is looking into the reddit trading frenzy. we've got that going for us, calling the ountry's top regulators to assemble it's wednesday, february 3rd, i thought we would just replay yesterday's show they didn't think that was funny. "squawk box" begins right now. ♪ regulators mound up it was a clear black night a clear white moon ♪ ♪ warren g was on the streets trying to consume ♪ >> good morning, everybody welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. it is not ground hog's day, we're here, new day, new things going on. >> would have been funny. >> and we are watching the u.s. equity futures. >> kwyeah, it would have been funny. >> would have been funny if we just played the tape, started out with that. people at home would have been going, just like the movie >> kwwe're going to save that fr april fool's day that's coming up not