tv Worldwide Exchange CNBC March 1, 2021 5:00am-6:01am EST
friday's triple digit selloff. the fda giving johnson & johnson the green light for its single dose covid-19 vaccine. shipment will begin today. president biden's $1.9 trillion stimulus bill passing the house. it now heads to the senate for what could be an uncertain future and warren buffett betting big on beshg sure once again and admits to one serious mistake in annual letter to shareholders. robinhood has big plans for more kacash in 2021
it's monday, march 1, 2021, and you are watching "worldwide exchange." ♪ if you like pina colada and getting caught in the rain ♪ if you're not into yoga if you have half a brain ♪ >> good morning, everyone. i'm seema modi in for brian sullivan kicking off the first trading day of the month, a look at stock futures. we're higher across the board. the bond market, which has been driving the action, you'll see yields have been coming down from their recent highs that were hit last week if we take a look at what's happening around the world, you'll see it's mostly a higher session overnight in asia with the expectation of the south korean market, we did end the session higher across asia and in europe, trading just got started. we're actually higher across the board there. the u.s. with its third
coronavirus vaccine in its arsenal. the cdc director giving johnson & johnson's vaccine the green light over the weekend the independent group of experts unanimously voting in recommendation of single dose vaccine being used in adults 18 and older. the final vote was 12 in favor with 1 recusal for a possible conflict of interest the virtual meeting was held hours after the fda authorized the vaccine for emergency use late saturday night. the cdc says the vaccine could be beneficial for health equity because it could be used to reach disproportionately affected groups, such as those living in rural areas. johnson & johnson previously said it would be prepared to ship 4 million doses once it receives the emergency use authorization and 20 million by the end of the month according to the cdc, as of yesterday, morning 75 million doses of the pfizer/biontech and moderna vaccines have been administered in the u.s. don't miss johnson & johnson's
ceo talking about this huge milestone on "squawk box" later on this morning. the continued threat of rising treasury yields we've seen really take place in the technology market. we had a new note from goldman sachs out last night saying that -- telling clients, investors asked whether the level of rates is a threat to equity valuations. our answer is an emphatic no joining me with his take is robert teeter, managing director and head of investment policy at strategy group robert, thanks for joining us today. what do you think, do you agree with goldman sachs, is the market's reaction to the bond market justified >> thank you i do mostly agree the level of greats today is not a problem and we think any kickup in inflation is likely to be transitory that said, it's great news we have a new month, a new vaccine and a new issue to focus on, so markets are starting to move away from covid and move to
other issues clearly, interest rates and inflation are squarely in the head lights for what investors are looking at today. >> i'm looking at names like amazon, apple and alphabet trading about 15% to 20% off their recent highs >> any declines in great companies are discouraging but we think it's part of a healthy rotation when you move into these new areas, it can be bumpy and we're starting to go through that transition now, starting to look what the area beyond covid looks like and that is causing investors to look into more things like small caps. >> where would you put money to work on the first day of march >> we think the areas with tailwinds are interesting. with a strong and improving economy, and many sectors going through their own version of cyclicality, we think industrials, financials, some areas that are disrupted by covid and starting to heal
those are the places we would look and further we would look to anything that has operating leverage and places who have the potential to improve profit margins either through productivity gains they have tackled through covid or otherwise. >> over the weekend i don't know if you read the barron's but there was a big article if yields continue to rise, industrials, that's the sector you want to put money to work because it's one of the sectors that will benefit from a rebound in the amazon and if d.c. does move forward with an infrastructure bill. i wonder if that's an area you would put money to work here. >> that's right. i think that has a lot of tailwinds and industrials have a couple things going on a change policy. mix and a focuson putting people back to work in america, the american manufacturing renaissance. all of these lend themselves to industrials that have the tailwinds behind them. >> speaking of policy, d.c. over the weekend moving forward with a stimulus bill. now we look to see what the senate does. how does that change your consensus on how policies out of
washington could drive this market >> i think in the short term it's a positive to get that done and get it in the background and help the 10 million people out of work. it does create longer term issues that's why interest rates are squarely in focus, whether inflation will be caused by any of this, whether rates will get out of control, whether the fed will lose the narrative. we think that's part of a national transition. we think ultimately investors will look through that and see a relatively strong economy and rates that move higher but remain low. >> the threat of inflation, how should we read that and how do you expect that conversation to evolve in the month of march >> that is certainly one of the issues that's come to the forefront here and something that's starting to crowd out covid news and i think for good reason. we will see a little modest upward pressure on inflation we've seen some in commodity prices recently. there are a lot of structural forces keeping inflation down. some are things that aren't going to change.
covid or not, stimulus or not. one of the things is the supply side of the economy, heavily service based, very flexible, very resilient, able to change in terms of capacity, a relatively slack labor market as well and other forces going on helping to keep a lid on inflationary prices. they existed before covid and haven't changed since covid. we see an increase in inflation. that will likely be transitory and we'll be past that in coming quarters. >> doesn't seem you're that concerned about this rise in consumer prices. when you look at the price of oil now back above $65 a barrel or copper at a nine-year high, there are certain parts of this market, robert, that suggest inflation is going to be moving much higher than expected in the near term. >> that's right. i think that's consistent with the economy overall. the same way we've had certain sectors that weren't impacted by covid at all, some that were absolutely devastated. you see the same types of things across prices for everything soim prices have remained
stable, competitive. others, there is a slight tight supply and demand in balance in some of the commodity areas and there will be upward pressure there. i don't think that will be universal across all prices. >> robert, thank you for joining us have a great morning. to washington now. the house of representatives passing president biden's $1.9 trillion covid relief package, teeing up what is expected to be days of debate and deal-making in the senate. trace tracie potts live from washington with more. >> reporter: this is probably not going to get republican support, at least it doesn't have any so far. this is the bill that includes money for vaccines we now have a third vaccine that's been approved in the united states. the government saying it will start to ship out this week, but that those shipments at first may be inconsistent.
johnson & johnson promising 4 million doses of their new one-shot covid vaccine this week, but the biden administration says don't wait for it >> people should take the one that's most available to them. >> reporter: money for more vaccines and direct payments all part of covid relief now in the hands of a divided senate. >> we're moving ahead with a bill that probably will get no republican votes. >> reporter: republicans argue it's packed with things that have nothing to do with the virus. >> do we need to pay for bridges? does that have anything to do with covid >> reporter: some democrats want to revoke business tax credits instead after a minimum wage increase was cut out. >> we have to spend the next several days or weeks figuring out what the best path forward is. >> reporter: today president biden meets with mexican president president. border security is to top the
agenda after president trump slammed biden's immigration policy at the conservative cpac conference. >> there is no better example than the new and horrible crisis on our southern border we did such a good job it all worked. nobody's ever seen anything that we did and now he wants it all to go to hell. >> it's become a trump party it's not a party of reason it's a party that has turned its back. >> reporter: trump in his first major speech since leaving office, hinting he'll run again in 2024. he also spent some time calling out republicans who voted for impeachment, seema. >> there you go,donald trump a it again thank you for joining us, tracie potts. when we come back, history in the making in the c suite as one of the country's biggest banks. warren buffett's biggest investment era that cost the oracle some $11 billion last year later, robinhood's big plans for 2021 a very busy hour still ahead on
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welcome back big buyback bets and more love from fintech those are some of the themes we're seeing in the stocks that are moving let's start with citigroup, up 2% premarket because today jane frazier takes over as chief executive as the third biggest bank in the u.s., making her the first woman to lead an american
bank the stock is up 9% this year and her move into the ceo position comes at a time when citi, one of the industry's problem childs, has stabilized and built up its defenses, proving sturdy and profitable even during the pandemic. berkshire hathaway and warren buffett, announcing they bought back around $9 billion in the third quarter bringing their total repurchase to a record $24.7 billion. our becky quick will have much more on the buffet letter later on the next hour of the show. the head of goldman sachs consumer finance division and one of their top executives, david stark, are leaving to start a fintech startup backed by walmart it represents a big step in the second big effort by the world's largest retailer to enter financial services after it abandoned its plans to start a bank over a decade ago following pressure from regulators
ismail is a harvard business school graduate who had been with goldman since 2002. he was tapped to lead the bank's consumer division known as marcus six months ago. goldman is up by 1.6% in premarket. on deck, a big night for netflix during the golden globe awards the moments you may have missed coming up next >> announcer: today's big number -- $3.9 trillion. that's the total savings households in the u.s. had at the end of january according to the commerce department omasfeua borthease of nearly 70% fr lt brryefe e pandemic began at cdw, we get these new ways of working
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to customizes your car insurance so you only pay for what you need? really? i didn't-- aah! ok. i'm on vibrate. aaah! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ it was a bruising week for the stock market last week, but on the first day of march we are higher sizeable gains in premarket trade. the dow up 4335 points as for the biggest gainers on the dow, at this hour in premarket, we're looking at j&j with historic news on its vaccine, up 3.5% boeing, apple, salesforce and disney rounding out the top five. and to hollywood we go a virtual golden globes show saw netflix winning the most awards out of any distributor last night. even wins for big players like
disney and warner media underscored the importance of getting content to viewers stuck at home. joining us now for more is michael snyder, senior et tore at "variety. it's been a long night for you, but once again the streaming giants showing up big at the awards show. >> this is the future. you look at netflix complete domination ten awards between film and television that's just the start of it. the streamers really have taken over the awards race just as they have the business in general. >> why do you think that is? is it because they have more money to put to work to invest in great content or do they just have the best directors and producers right now? what is their secret sauce >> it's all of the above they have the funds. they are spending billions of dollars in content they have sheer tonnage and money begets talent. they are buying their way into these races and into our homes with the best content, with the best producers, writers, directors and stars. that money is paying off, at
least when it comes to the awards. >> what were some of the surprising moments to you, i guess? i wasn't surprised to see "crown" and "queen's gambit" do so well. those were some of my favorite shows over the pandemic. what stood out to you, michael >> yeah, there weren't a ton of surprises. i think you're right, though, "the crown" we expected would do well we weren't sure if it was olivia coleman, who plays queen elizabeth, or emma coran who played princess diana, the winner on the film side there were a few more surprises i think a lot of people thought glenn close was going to win as opposed to jodie foster in acting andrew day was a nice surprise, unexpected as well for ber billie holiday telepic other than that, not too many surprises. >> what did you make of the format in a way i kind of liked how the actors were joining virtually. you got a window into their homes. bill murray with that beautiful
sort of l.a./hollywood hills back drop. the stars still trying to dress up in a way, it felt a little more authentic versus the red carpet and them all dolled up up, you know, coming to the awards show. do you think that's a format that will work in the future, joining virtually? >> i think it's hard to work this past year the emmys did a really good job with it. it is still tough to pull off. i think everyone is exhausted of these zoom calls and, you know, i hate to say it, it felt like a zoom meeting throughout most of it the glitches as a result some glitches are fine you know, the show kicked off with daniel's voice not being heard because i think he was on mute which is, you know, you want those kind of moments, at least these unscripted moments on award shows. but there's got to be a better way to do these shows. i don't know what the answer is. i think we're sort of exhausted with these kind of shows. >> the actors are just like us they also struggle with the mute
button >> takes practice. >> thank you for joining us. michael schneider of "vanity fair". let's get a check on the other stories happening at this hour nbc's francis rivera in new york with the latest. francis. >> good morning. we start with former president trump who is breaking his silence, speaking at cpac last night and strongly hinting he will run again in 2024 trump continued to push election fraud conspiracies and also attacked republicans who voted to impeach him the former president broke precedent going after his successor, president biden, for rolling back trump-era policies on climate, iran and immigration. according to the cpac straw poll, 68% of attendees want to see him run again. however, there was near unanimous support for the party toadvance trump's policies. a giant iceberg has broken away from antarctica's brunt ice shelf. it covers nearly 500 square miles or about 20 times the size of manhattan british researchers say this
split was part of a natural process and there is no evidence climate change played a role tiger woods breaking his silence after last week's scary car crash, thanking many players on the pga tour who paid tribute to him on sunday woods famously wears red on the final day of tournament so golfers like rory mcilroy, patrick reed and jason day wore the crimson shirts for the last day of the wgc workers championship tiger said he was touched seeing all the red shirts on the course adding, you're truly helping me get through this tough time. so many people rooting for tiger in a very different way they're used to rooting for him. there are your headlines. >> thank you so much, francis. ahead on this show, the fda giving johnson & johnson the green light to start shipping its single-dose covid-19 shot. we speak with one doctor who helped orchestrate the company's vaccine trials for one major u.s. hospital. and if you haven't already, subscribe to our podcast if you missed "worldwide
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facing that plan. and the cdc officially approving johnson & johnson's vaccine as the federal government plans to get the treatment to millions of americans. it is monday, march 1, 2021. you are watching "worldwide exchange" on cnbc. ♪ welcome back i'm seema modi in for brian sullivan it's the first day of march. here are how stock futures look as we are halfway through the 5:00 a.m. hour the dow poised for a strong open, up 340 points in premarket trade. the thats dak is up by 210 points the nasdaq still off by 7% off its record high. it was a bruising month for the nasdaq this after the ten-year yield hit a one-year high. the bond market reversing course this morning we're seeing yields come off the high of the session. the year on the ten-year, 1.4%
despite the steep selling we saw at the close of february, worth noting that the major indices still closed a month with gains. the dow finishing up more than 3% the s&p 500 higher by 2.5% and while technology, the sector ended lower for february, we did see the broader nasdaq close out the month with a gain of nearly 1% the big gainers on the dow for the month, check this out. the industrial giant caterpillar, goldman sachs and chevron seeing double-digit gains in the month of february on the s&p 500, it was marathon oil, as we see the big claw back in energy. twitter and royal caribbean, the cruise line seeing gains of 43% in february. the nasdaq's biggest losers -- biggest winners, excuse me, marriott, trip.com and applied chemicals. the month was all about the rotation out of big tech and into value check out the action in the
russell growth etf the flat to down for the month but the russell value etf, iwd ending the month up 6%. to your morning's top stories. robinhood reportedly plans to confidentially file for an ipo as soon as this month according to bloomberg they have held talks with their underwriters about movin forward with the offering within weeks. the report adds no final decision has been made and the timing could change. president biden is offering his support for amazon workers pushing to unionize in alabama without calling out amazon specifically, biden yesterday tweeted on you the a video calling the vote, quote, vitally important. workers at a warehouse began voting by mail early last month on whether to join the retail, wholesale and department store union. the first major unionization effort with the company since 2014. britain's finance minister is proposing a new idea to help the country's economy rebound from the pandemic.
speaking on tv yesterday, suggested giving people vaccine passports or certificates to allow them to enter venues or events to help the entertainment and hospitality retailers. boris johnson said last week the government review potentially using that idea. and to capitol hill we go as president biden's $1.9 trillion stimulus package moves to the senate after clearing the house over the weekend teeing up what to expect in the days ahead and what type of deal-making may be happening on the sidelines with ylan joining us. >> good morning. democrats are determined to pass this covid relief package within the next two weeks so they're abandoning their push to raise the minimum wage as part of this bill the latest version would have created a tax penalty for companies that don't pay their workers at least $15 an hour two sources tell me it won't be part of the final package. the measure is controversial and finalizing that language could
have delayed the bill, possibly beyond the deadline the democrats have set of march 14th when key jobless benefits expire still, that didn't stop senate bernie sanders from taking to twitter to take corporate america to task. >> you've got mcdonald's, burger king, dollar general, you've got dollar tree, all of these companies out there that are often very, very profitable. they pay their ceos very big bucks, millions of dollars a year, and somehow they can't pay their workers a living wage. >> now, the white house said it is still looking for ways to increase the minimum wage, but over the weekend, president biden urged the senate to take quick action on covid relief >> we have no time to waste. if we act now, decisively, quickly, boldly, we can finally get ahead of this virus, we can finally get our economy moving again. >> and the process in the senate
is a little trickier than in the house because special rules they use to pass this without republican support it is possible democrats could bring this package to the floor as soon as wednesday back to you. >> the likelihood of that passing before the march 14th deadline >> it seems pretty high right now. the fact they're dropping this provision, which is something that did not have the support of every senate democrat. the reason why the minimum wage was so controversial is because some senators like joe manchin who didn't think it should go above $11 an hour. democrats were fighting for $15 an hour. the recognition this was going to be a high hurdle for them to clear, that they got rid of that, that means it seems like they have the votes they need in order to pass this quickly the process is still going to take a while they have to let this go through an amendment process that could take several days still. it looks like they would be able to meet that march 14th deadline, which is one of the reasons they got rid of the
minimum wage. >> you have to wonder where that leaves progressives as minimum wage is an important issue for them. now to johnson & johnson vaccine, set to begin shipping out as soon as today after the fda and cdc officially signed off on the treatment over the weekend. the j&j vaccine is more flexible given it is delivered in one shot and doesn't require special storage. for more on their approval on the broader vaccine rollout, i'm joined by dr. gore, director of clinical research for infectious diseases at st. jude's children's research hospital he also is a co-lead investigator on that hospital's j&j vaccine trials doctor, good morning to you. >> good morning, seema >> what should people know about this j&j vaccine, how is it different from the pfizer and ma desh that vaccines already on the market >> i think you hit on two of the main points. which is this is the first and only single-dose vaccine second, it comes with no freezer
or refrigeration requirements. both are very important to get one dose and get protection and logistically a big difference compared to what we currently have it's two very effective vaccines but both require two shots. >> third vaccine on the market it's a huge milestone. doctor, what do you say to those who say, you know, it's great to see a third vaccine on the market but this j&j vaccine does have a lower efficacy rate than pfizer and moderna >> that's a good point, seema. there cannot be enough emphasized these different trials have been done over the course of the past six, eight months. there's been an evolving picture of the variants which have mutations which compromise some vaccine efficacy when you look at these numbers, it's not an apples to apples comparison when you look at the three vaccines certainly the johnson & johnson vaccine, the september to
february time frame has seen much more of the effects of the variants, especially in countries like south africa. that's what one should caution i remind myself and others that's what's important is look at protection against the severe and critical illness that's where there is a commonality for all of the vaccines they're all very effective in preventing the severe spectrum of the disease. >> how does distribution of this j&j vaccine, doctor, speed up the timetable as to when the u.s. could be fully vaccinated >> so, i think just looking at what johnson & johnson has announced in terms of vaccine rollout, they're expecti ing 4 million to go out this week and 20 million by the end of the month and 100 million by the end of the year. these are large numbers but when when you look at the united states and our needs, the needs are far more it will take more than one
vaccine manufacturing, but i think on the positive positive side, it's very heartening to know that the vaccine doses are to go out this week. >> as you said, this j&j vaccine doesn't require the ultracold temperatures that some of the other vaccines do. how could that help get this vaccine to rural areas that may not have those cold storage facilities >> certainly the more stringent the storage requirement, the more the freezer requirement, the harder it becomes for systems that are not used to that kind of handling for vaccine. when we look at the rollout in the united states, it's a combination of both meeting supplies and better keeping the supplies the simplicity of using a cold chain that this manufacturing is used to and has already set up, gives it a big leg up in terms
of getting to areas which would have otherwise been difficult if the requirements were more stringent. >> in emerging markets, countries like india and southeast asia that don't have that cold storage facility available, is this a vaccine that will likely be used there >> certainly that's a big consideration, i'm sure, that regions will look at this being a much more simpler distribution system compared to the other peers that are very effective. >> doctor, we appreciate you joining us today to give us the latest on this vaccine again, a huge day as we try to move forward to getting back to some sense of normalcy thank you for joining us. >> thank you. coming up at 8:00 a.m. eastern, johnson & johnson's ceo and chairman alex gorsky exclusively joins cnbc to discuss the approval of his company's covid vaccine. the oracle of omaha laying
out his outlook on the investing landscape. becky quick lays out the top takeaways from warren buffett in his annual letter to berkshire holders. elementary school kids will likely be able to get a covid vaccine early next year. in an interview yesterday, dr. fauci said more data is needed to make sure vaccines already approved can be safely administered to younger children rocket lab is reportedly in talks to go public with a spac vector acquisition, according to "the wall street journal." the deal,which could be finalized today, would value the space transportation startup at around $4 billion. bitcoin remaining under pressure, falling to $43,000 yesterday, but it is higher by 2% right now the crypto is trying to rebound here well off the record high of $58,000 that it hit last month we'll be right back. these folks, they don't have time to go to the post office they have businesses to grow customers to care for lives to get home to
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they grow from our imagination, but they can't be held back. they want to be set free. to make the world more responsible, and even more incredible. ideas start the future, just like that. welcome back warren buffett releasing his annual letter to berkshire hathaway holders over the weekend, signaling more berkshire stock buybacks are coming this year, also saying not to count the u.s. out. beckwithy quick joins us with more becky, what stood out to you >> it's good to see you. there are so many things that come with. this is always a pretty anticipated letter not just what it says about berkshire's businesses but about the economy, wall street, about
corporate america and the practices he sees there and buffet delivered on much of what we expect over the years he offered up some folksy wisdom and talked up america. most people try to forget their mistakes but buffett put his front and center berkshire took on an $1 1 billion writedown for a manufacturer for the aerospace industry it bought back in 2016 for $32.1 billion. i paid too much for the company, buffett wrote. pcc is far from my first error of that sort, but it's a big one. on the other side of the ledger, what he's done right that's to invest in apple. buffett calls berkshire's ownership of apple one of the family jewels of county company along with their property and security group, bnsf railroad and berkshire energy they purchased apple late in 2016 through mid-2018.
since then it's sold a smart part of that stake for $11 billion and received more than $2.3 billion in dividends from apple. the stake it's still holding is worth110 billion that stake has grown thanks to stock buybacks at apple. buffett pointed out berkshire shareholders have seen their profits grow not only because of buybacks at apple, but buybacks at berkshire now, for the criticism of corporate america, you always see a few dings that come in here but buffett did take con conglomerates to task. the thing with most is they only buy businesses in their entirety and that limits the pool of available businesses because most great companies don't really want to that's exacerbated when conglomerates buy back with inflate the stock price.
with comments on the market they were sparse this time around but he said bonds are not the place to be. that echoes jamie dimon when he said he wouldn't touch treasuries with a ten-foot pole. we'll talk about his stock buyback, faith of the american dream and criticism of conglomerates. that's coming up on "squawk box. looking at the bonds and his comments about it were pretty interesting. >> especially given the outsized focus on the bond market, especially in the month of february likely to continue into the month of march as far as where the market goes from here. even though the 90-year-old billionaire covered great ground in his shareholder letter, i think there were some who were left wanting more on the topic of leadership and succession is that something we expect berkshire hathaway to address in the next meeting coming up in may? >> i do. i would expect all of those things to come up. some people thought maybe he would weigh in more on things he's seen politically but the annual letter isn't a place he's
done that in the past. in the past it's been the interviews he's done around the release of the letter. he's usually with us on this monday morning in fact, this is the first time in 14 years he won't be with with us on "squawk box" in the morning. that's because he's spoken a lot less since we've been in this pandemic, spoken out publicly. i don't know entirely why that is, but it wouldn't surprise me if part of the reason is just because he doesn't want to be talking too much publicly when things -- when there's so much kind of chaos in the market and maybe he's doing some moves. maybe he doesn't want to talk about them we know we'll hear from him in may. that meeting will be held in los angeles this year. that's a first it won't be in omaha it will be in los angeles because there aren't going to be shareholders that are present. it will be a virtual meeting but charlie munger will be on stage with warren buffett for that meeting. >> becky quick, thank you for joining us with highlights from the shareholder letter becky quick. >> sure. coming up next on "worldwide exchange," stocks looking to kick off the next week with solid gains. gillman hills' jenny harrington
lays out where she's finding opportunity. you can see the dow up 330 points. if you haven't already, subscribe to our podcast if you missed "worldwide exchange" check us out on ape,pl spotify or other podcast apps. in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ stop struggling to clean tough messes with sprays. try clean freak! it has three times the cleaning power to dissolve kitchen grease on contact. it works great on bathtubs. and even stainless steel. try clean freak from mr. clean. in 2011, my co-founders
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for skin as alive as you are... don't settle for silver 7 moisturizers 3 vitamins 24 hours hydration gold bond champion your skin welcome back time for another look at the stocks to watch in the trading day ahead. we are watching shares of logitech under pressure on a weaker outlook for fiscal 2022 the company pegging that figure between 750 and $850 million, down from the $1.1 billion it expects in fiscal 2022 shares down 1% right now. next up twillo in talks to invest $750 million in the messaging company cinaverse. it's owned by carlyle group and shares are up nearly 2%. take a look at astrazeneca,
selling its stake in moderna for more than $1 billion according to the london times. they say the sale occurred after moderna shares soared following approval of its covid-19 vaccine. the exact time is unclear. astrazeneca up 0.8% in premarket. to the broader markets futures looking to kick off the march in green after a disappointing session for stocks last week. the dow ending on friday -- more than 400-point loss on friday. we're up more than 300 points. the nasdaq seeing its second down week in a row on the heels of rising treasury yields. the ten-year yield right now off the highs of the session just around 1.43% perhaps no sector hit harder last week than growth. the kind of stocks held in rakk. some of the top holdings, tesla, square and roku down double digits but ko a rebound be on
the way? i'm joined by chief executive officer and portfolio manager at gillman hill, and a cnbc dr contributor. jenny, thanks for joining us. >> thanks for having me. >> a little volatility last week, but even with the volatility, it's important to know the s&p 500 is just off 3% from its record high if you zoom in a little more, you'll see there is somewhat of a shift under way. names like facebook, alphabet, amazon down 10% to 15% from their recent high. i guess the question is, do you buy the pullback or do you think there's more weakness ahead? >> well, i think there's more relative weakness ahead. it's really important on this rotation to talk about what weakness actually means and it's relative if you think about it, the technology index is up 0.50% year to date but up 4r9% the last year. nasdaq is up 54% over the last
52 weeks the interesting thing about this rotation is it's unlike any rotation i've seen in the past normal rotations are a boom and a bust this one is a boom and a plateau. i don't think you need to run away from the big stocks that led us last year particularly if you have big capital gains in them. maybe they'll plateau and let their earnings consolidate into those huge prices they developed last year, which would be really healthy and exciting for a nice change instead of having something collapse i think money can flow into what didn't work last year, what's working this year. money can flow in but it doesn't need to be at the absolute expense of what worked last year. >> is there an argument to be made, jenny, if yields continue to rise here, that technology is a sector that won't be able to outperform in this type of environment? >> i think so, but the key being outperform let's say we're looking at --
this is where technology gets a little bifurcated. let's say we look at faang, amazon, apple. a lot are trading at reenld mulm reasonable multiples they can grow into those multiples. let's say you're an individual investor and made huns of multiple percent you may not want to realize those capital gains. you don't have to sell those to do well. the other part of technology, the docusign, pelotons, zooms, i think there's risk, real risk in those, doordash, airbnb. to me those market capitalizations cannot be justified. maybe you do want to just suck it up and realize your capital gains in those because there is loss ahead, an actual loss ahead in that part of technology >> yeah, i think there were a lot of -- a lot of surprise after airbnb earnings actually came in higher than expected following that huge stellar debut on wall street where do you stoond a name like tesla, one of the big losers on
the nasdaq last week do you think that was a stock that ran up too fast or did it have to do with the big drop in bitcoin we saw last week we know tesla now has bitcoin on its balance sheet. >> what ran tesla up last year was so -- i don't know what to call it. like smoke and mirrors or so fictional. tesla ran up because of enthusiasm in an unhealthy way there's no way to justify that market capitalization. i don't even want to say valuation because it's something afemoral that it's trading at. tesla had a big move in august because the shares split that added zero economic value tesla got chased up in no small part last year because of the esg trade. i think that's a little ridiculous you can make an argument, you can pretend tesla is an energy company now. come on. you can say evs are the way to go but there's also huge competition there. and also last year was a big year people bought stories
last year what happened was the dollars and cents and the numbers we all rely on as investors to make decisions, those went out the window. they disappeared for a while and replaced by stories. what's coming in this year is the numbers are coming back into play you can rely on revenues expectations you can rely on earnings expectations no, i don't think tesla's multiple -- i'm sorry, tesla's valuation at $900 a share, or here around $700, i don't think that's sustainable in that case. i think there's reasonable if not significant downside in tesla's share price. >> tesla up 3% in premarket. attempting to rebound. it's the first day of march, what's the top trade where do you see opportunity this month >> i think the opportunity continues to be in 2020's have nots you can look at that as, i don't want to say value but you can look at it as energy, financials, dividend stocks, reopening tocks, things that didn't work last year and are
still trading at huge discounts. for example, there's a company in our growth portfolio called fiserv that does technology for big banks. trades at 21 times earnings. it wasn't a big story stock last year growth this year is going to be 23%. next year it should be 18% there's opportunities in companies like that. and don't forget, like, there are about ten stocks in the s&p 500 with an average multiple of 33 times there are 490 with average multiple of 18 times there are a lot of companies out there with really cheap valuations that really got ignored last year and there's still a lot of potential. >> on the topic of inflation, i mean, is that going to be something this market sort of just continues to fight against in the month of march? >> i think that's going to be a theme not just for march but probably for the rest of the year and going forward i think inflation will be a push impulse. you have the fed saying, inflation? there's no inflation we're not thinking about inflation.
but the market is telling us differently. you see oil trading at 61. last year it was at 47 copper at a ten-year high. you see housing prices up 11% in december and then an ecdotal information from our clients every single sprir of those rvs have passed on price increases to the manufacturer. you see it in the macro data and micro data there's definitely inflation out there and other areas of the economy where there's no inflation. i think it's going to be a push and a pull i don't think it's going to be runaway. i think it's going to be real but not runaway, off the charts had, derailing the market inflation. >> and in some cases you could say that was acknowledged by fed chair jerome powell in last week's address as well thanks for joining us this morning. we'll take a quick look at
dow winners. we are being led by j&j, up 4% here on that vaccine news. boeing, salesforce, apple and chevron, the top five winners on the dow. that does it for us on "worldwide exchange. "squawk box" is next want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost?
good morning dow futures surging as treasury yields retreat from a treasury high we'll show you what's moving in the premarket trade. then there were three. the first doses of j&j's vaccine ship out today after the shot was approved for emergency use over the weekend ceo alex gorsky will join us later in the show. plus, the house passing president biden's $1.9 trillion covid relief plan.
we'll tell you what to expect from the senate. monday, march 1, 2021. "squawk box" begins right now. ♪ ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. we're watching the u.s. equity futures. we're looking at the markets down about 3% from the highs if you're looking at the dow or s&p 500. down about 6% if you've been watching the nasdaq. you see this earning month that we are looking at some pretty significant gains. dow jones industrial average indicated up by 335 points the nasdaq indicated by up 195 points the s&p indicated by up by 43. i don't know if there's a real reason happening here other than the j&j news, that we'll talk