tv The Exchange CNBC March 24, 2021 1:00pm-2:00pm EDT
is a truckload will see continued strength and momentum higher >> okay. steve, what have you got for us. >> porsche the stock off from its highs it's good to take a risk i believe it's down because of what's happening in germany and the company so much more than that great buy here the exchange is now. cheap hope it's an attempt to retialize the business social giants set to testify again in front of congress gamestop nothing burger earning report we begin with today's markets overall.
>> as you can see the dow industrial 3,2732,704 half a pen advances for the s&p 500 three quart es of 1% decline that level stands at 13 is 33 and change if you look at the s&p 500 versus the semis it's been a huge performance gap between the two. take a look at that. 101% advance there for the semiconductors we're seeing alittle bit of that give back today but bullish news on semiconductors we'll see if trend plays out maybe the stock move of the day so far it's an eye catching one to the downside this is one of the best performing stocks in the s&p 500. the best performer over the last year entering yesterday's trade.
it's now down 18% today after big decline yesterday. that brings its total decline to roughly 27% from the highs we saw just two days ago. thaw news sending shares down. i spoke with ceo in his first broadcast interview as the company's new ceo and asked how we will know if he's on track at the end of this year >> we'll give i understand caters along the way of customers committed to the foundry. some will be customer accounts probably give some metrics
around how many start commit ms we have for customers. things that allow investors to say they are doing what they said they would. we want it to be extraordinary we'll say something and over deliver in a consistent way. if customer x haears that y and have kplited design, that will build conference on their part as well. >> i ask if this poses a risk if the gap between supply and demand closes. >> i believe that the world has a ten-year good cycle in front of it, john. when you think about every industry is becoming more
digital. our human existence is becoming more digital the covid was a big accelerate tore that claerly there's different gaps in supply that you work through. we're leaning into that because these capacity decisions need to be made years in advance and part of our current shortages are the decisions that the industry didn't make several years ago. we're saying we will lean into that aggressively. s >> joining me is senior semiconductor. you're literally not buying it that's at about 63 it would seem if there's any time to bet on intel now would be that time why are yo unimpressed
>> i -- cheap is never a reason to buy tech all buy itself you need more than cheap i like pat pat can bring hope he can give credibility. maybe he can do something on the hr side and keep it there and everything these are all good things they can do it's interesting part of the bull case on the stock like two or three months ago is they were going bad light. now it's like we're going to double down on everything we have been having execution issues plus we'll out source and
enter this brand new business and go led to head the general transition economics will get worse they already lowered guidance this year. the hope is they can give some certainty for what earnings will be we don't know what the top earnings are >> let me ask you the inverse of the question that i asked him.
if i step back, interest rates are low. there's more reason than ever for the u.s. government and government in europe to support what intel is trying to do he is on paper, the guy for this job, but as you point out, they have failed at foundry before and the full year guide doesn't look great how will we know if pat is fail at the end of 2021 >> he got there five, six weeks ago. they didn't throw this together in five or six weeks they have to have been working on this before i don't think bob swan could have sold this to the street he's got the credibility that's probably one reason pat had to go. this is not a dumb thing they are doing.
if it fails, they don't have to give the tools back. they have a structurally higher capex. it's not for the foundry business if it'sgoing to be running that high, if they can get some money to help offset, that's not a dumb thing that's a very smart plan in that sense. in general, like i said, the costs are going up the economics are going to get worse. we'll just have to see what they see in terms of monitoring this stuff. we're really not going to see anything in terms of like actual like numbers that you can really tie into it until 2023 or beyond that the road map for the next several years is baked the amd story, they will still be taking share. apple will be moving away.
>> hard to argue with what you're saying. what's interesting about the microsoft story over the past decade is the multiple expansion came before the real shift in numbers. we got do leave it there for now. quite a lot for investors to take in whether to eat these chips. mark zuckerberg testifying before the house energy and commerce committee tomorrow on misinformation on their platforms. what might be done about it. the ceos releasing their testimony today. mark zuckerberg saying we are committed to keeping people safer safe and protecting free expression
joining me now are two members of the committee demanding answers. welcome to both of you what's the most important thing you think we can learn from this process aside from the posturing that we sometimes see here and the testimony that's already been written down. >> one thing we don't want to hear is ceos tell us excuses and say we weren't aware of that and we'll get back to you. we had them in front of the committee before they testified in front of us before we were concerned about censoring at that point. they are protecting by section 230. it's very open it means that you're not monitoring the con tent. this goes back to the public square are you hammered and nailed your messages down and the people there providing the property or the post weren't held liable for what was said.
we extended section 230 to these platforms because we seen it as the modern say public square what we seen with facebook, what we seen with google, twitter, is they are continuing to monitor what is said and choosing to remove posts that they deem not acce acceptable that's not what section 230 does there's a difference between disagreeing with a view or having a vulgar post there as sexual contact or something immediately inciting violence.
the companies are going to say we don't remove posts because of people's political opinions. as a matter of fact, the democrats are arguing that we leave that stuff up to much and we remove stuff when there's harm threatened to individuals things like that it seems everybody is attacking 230 but nobody seems to agree on how to fix it. >> yeah. it's tough to fix it you want to try to keep the platforms as open and free as possible but also these companies need to be leld accountable when they do things that put the public's safety and health at jeopardy i also think that there's a ton
of conservative content on all of these platforms if you go to twitter or facebook you find all of these guys the company needs to make sure we don't have repeats of what happen on january 6th. they have an obligation to make sure they are not allowing content on there >> we sort of heard two ends of this to some extent. congressman, even aside from section 230, look at parlor. they weren't really having a heavy hand byfully stretch of the imagination in monitoring the content and amazon web services said, you know what, that's a problem apple said that's a problem. you're not behaving according to
they wouldn't allow them to post the story. how is that not censoring the c content that's there you have candace owens removed from twitter when she criticized the governor of michigan about the mask mandate that's her opinion she's voicing her opinion. that's called free speech. they removed that content. it wasn't her. >> that's the environment in which it stood congressman, clearly this, we're not coming to agreement here what progress do you think can be made coming out of this hearing? >> i think they need to be able to articulate to the committee
how they will have a platform are people can share information and it can be open but it's not to the detriment of people's health there's things that are being spread around on facebook, for instance urging african-americans to not get the vaccine for covid-19 a lot of this information that's being spread throughout facebook and twitter is false it's saying all these things that will happen it needs to be fair and open i don't care if there's conservative content on there. i think the sites have an
obligation to pull it down whether it's on the left or right. >> facebook said that they aim to take down misinformation on vaccines not sure how that applies to opinions thank you congressmen. >> thank you coming up, the bond market seems to be stabilizing this week yields moving lower. does that mean the text ch sect is getting ready for a rebound cruise lines have new plans to get around cdc guidelines. it's good news for the industry but bad news for u.s. jobs. we have details. ♪ ♪ it's not "pretty good or nothing." it's not "acceptable or nothing." and it's definitely not "close enough or nothing." mercedes-benz suvs were engineered with only one mission in mind.
>> yeah, there's probably always more to it i think in this case there's a couple of things that are happening. the stay at home trade is -- people are rethinking that because of the obvious consequences i think those are separate things that happen to be related. you can have and probably will have scenarios like this that we have today
the long bond plarkt can be manipulated by the federal reserve. it can be bubbles in stocks, which we had >> things are opening up one might think let's look at the sorts of companies that will benefit from that. a lot of those companies had a nice run already how do you determine where value is >> they had a nice run from 60%, 70% off. it's a good example of that. it's an airport operator you can guess what happened with the stock. it went from 130 to 30 the stock is trading at 50 now i can make a case there's a lot of value
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welcome back to the exchange stocks are mixed with the dow seeing its biggest gains and the biggest one day gain in two weeks. the nasdaq in the red nearing session lows let's check the sectors. energy, industrials and materials are your leaders communication services and tech your laggards. here are some of the movers this hour alcoa moving higher. this on raising its target from 20 to $43. general mills lower on an earnings miss. revenue did beat but disappointing organic growth in north america is one of the weak spots. take a look at the at home
stocks p pelton is down 8%. >> that's a new shot there 13 states attorney general are suing the biden administration over its energy policy louisiana's attorney general says t costing jobs. as people mourn the fatal shooting of ten people, a first court date has been set. he's expected to face a judge tomorrow morning see how the boulder community is coming together tonight. americans celebrating easter are expected to spend a record amount on the holiday this year. slow the biggest increases with total easter spending expected to hit 21.6 billion dollars. i already have friends who have
already bought candy not for their kids, for themselves no judgment. >> a couple of days ago you were talking about be pounds people put on >> don't be judgey sgr your friends game stop seems to believe that less is more. cars meet crypto sailing past regulations that's ahead in rapid fire the exchange is back after this. machin if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. green bonds give investors an opportunity not just to get a good return,
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. let's get you up on a few stories that should be on your radar. it's time for rapid fire gamestop shares plunging down more than 19 p% on disappointing earnings lack of details from executives on the call. jenna owens will take over as coo and might fund shares to fund its digital transfor medication understand o you said this call was a nothing burger >> what happened to all of this talk about a digital
transformation nothing. no earnings call they read a statement and hung up on everybody. they were ready to start is asking questions and there was nobody there they just hung up. you can do an offer for this that's not like a traditional secondary here here you don't have any fixed number or a fixed price or fixed time you could have additional shares on the market very quickly the last thing, the volume is terrible today it's one third normal volume here what we have is not a lot of sellers but not a lot of interested buyers which is why the price is down. i think people are having a hard time figuring out what the price is for this company. >> robert. we have been watching this stock for a while. i don't know what to make of it. it seems like all of wall street is probably -- that loves volatility is probably all over this stock
a lot of it comes down to cohen. >> yeah, it does i hope the reddit traders have iron stomachs. there's no sign the revolution is happening or even starting. it's a company with nine straight quarters of sales declines forget about profit declieps i also thought from a wall street perspe spective it was interesting. never say the research is influenced by the banking relationship but it's just interesting that most of the street has this thing. next up, cruise lines rallying and concerns over new lockdowns.
the time line is in line with the president's comments that americans should be able to gather in small groups by independence day one company has a way to get around all this. you've been following this what's going on? >> you can feel the frustration of the cruise lines. royal caribbean is launch two new sailings they will not stop at u.s. ports. the only challenge, i could forsee, your a loyal cruise passenger instead of booking a flight to miami and getting on board you have to book a flight to the bahamas it may cost a little more.
it's a longer flight you have to test negative for covid before getting on board. you have to be vaccinated if you're above the age of 18 we'll have to see what bookings tell us about the demand for these sailings it showcases how the cruise lines have had to get a bit creative on getting in frochbts their passenger and their passenger and tabing advantage of that summer season. >> that's a lot of hoops to jump through. you think enough people are itching to get back on a boat? >> i'm consistently surprised how throughout there crisis, we had sort of a fall start where we thought we would get cruising in the fall how many sign ups there were there's more people that love to cruise and can't wait to get back >> there's some hard core cruise
people they love to cruise. elon musk can really, really embracing crypto tweeting you can now buy a tesla with bitcoin he clarified the payment option is available only in the u.s it's going to be available internationally later this year. tesla shares are down today. they are down more than 20% since musk revealed tesla acquired 1.5 billion in bitcoin last month bitcoin is up since then robert, a lot of billionaires that are talking about bitcoin and crypto i'm not sure whether we should follow the billionaires this time >> i don't know either there's two funny things about this the first is people have been buying expensive cars with crypto for years
he spent $115 for the bitcoin that translate into a $250,000 car. he was proud of it those bitcoins today would be worth $2.5 million he gave up seven cars by giving up the currency. there's also the issue with the tax. say you buy a $70,000 tesla. you're paying $14,000 in capital gains tax, perhaps by trading in the bitcoin. you pay a capital gains tax. cash always makes more sense whether you're buying car or a house. >> should you buy gamestop with bitcoin? >> i don't think so. i agree. bitcoin is not a very viable payment system yet.
related to liar interest rates than it is to bitcoin right now. >> one more. another day, another celebrity getting into nfts. this time it's mark cuban. cuban telling the block that he's building out a digital gallery called lazy.com. it's currently being beta tested it will allow users to display digital art all in one place no word on an official launch. it's got to attention of time magazine to quarterback patrick mahomes. i think this is coming around to physical display this is going to be about real stuff. >> right that's when we know the nft
market has truly arrived that could be really interesting so more people have access and know where to find this digital art. >> robert, do you know who medicovan is yet you know the super rich better than anybody what good is spending millions of dollars on mansomething if yu can't show it off. >> it's such a good point that the billionaires are catching up to you buy a trophy asset to show off.
i do think it will be a trend to find place to display them mark cuban has a lot riding on nft. he's an investor in open sea and as an nba owner he gets proceeds from the daper labs collaboration with the nba he's invested perhaps more than anyone and has investments riding on the future of nft. i think he's building something that's valuable. >> bob, give us your closing take >> the bit point is the collectible market for everything is exploding. the question is, is nft a unique asset like collecting posters or comic books. they're acting like it is. i collected comic books in the
1960s. the first super man sold for a million dollars in 2010. somebody did it routinely sells for two to three million dollars. >> do you have it? >> it's worth what anybody is willing to pay for it. not that one that comic book you could have bought for $5,000 in 1969. >> i hope you got some good ones thank you. still ahead, it's equal pay dli day here in the u.s. which raises awareness of the ongoing gender pay gap of pmen and wome. tasha, did you know geico could save you hundreds on car insurance and a whole lot more? hmm. so what are you waiting for? hip hop group tag team to help you plan dessert?
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as retail, leisure and hos hospi hospitality. the wage gap is expected to widen later in 2021. joining us is a woman who made equal pay one of the many issues she champions. thank you for joining us today >> thank you great to be with you >> i know you have a new book coming out let's dig in here on equal pay you have written about this in the past how should companies think about closing pay gaps >> with all our work, it's the look at the pay gap in the larger context of the fact women still carry a disproportionate about of work at home.
unequally, a larger part of the burden >> not talk about the whole work force, all employees ri right now with this widening over the course of the pandemic as more women leave the work force, what is your recommend dax to companies right now especially as some companies are liaring again. some are entering more of a hybrid work environment. >> again, this is part of the larger reckoning post pandemic which is also huge opportunity to redefine productivity and recognize that well being and productivity are interconnected.
it's no longer just warm and fuzzy, nice to have benefit but intimately connected with business metrics like recruitment and performance. we even had this new sec rule which is quite ground breaking asking companies, man dating that companies report on what they are doing for the human capital. it puts mental heldalth at the center >> very interesting. what are your recommendations to companies right now and to employees especially as people reenter the n-person workplace
>> the book is based on the principal of micro steps we find a lot of companies, executives are overwhelmed if you ask them to do anything to improve their well being and performance, it overwhelms them even more. we have broken it down into what we call micro steps too small to fail there are hundreds of them in the book if we start steps we build new healthier and more productive habits let me give you my favorite which is based on the latest neur neuroscience it takes 60 seconds to go to stressed anybody who is watching now is stressed we're not going to eliminate stress from our lives but we can
eliminate cumulative stress. we can avoid that by having the 60 second resets during the day. between zoom meetings, have you sever stressful news, before you go to bed. 60 seconds before you go to your phone in the morning in our work with morning in our companies we put reset at the center including with call centers. you know, call centers are some of the most stressed out parts of our economy but if you feed this 60-second thrive calls to the operators it really changes both the stress levels and customer success. >> well, i hope as people return to the office that it proves an opportunity for employees and companies to make some reset decisions. arianna, thank you so much for joining us jon? >> thank you. still ahead, with more than 45 million americans fully vaccinated offices, schools and
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microsoft announcing it is planning to phase workers back into offices starting this month. joining the likes of jpmorgan, goldman sachs and walmart but with vaccinations under way, cases going up in a few areas, companies are looking to implement safety measures. there's symptom monitoring for employers and venues like yankee stadium looking for a safe way to reopen. joining me now to discuss is the ceo of clearforce. what's your assessment of where we are right now you know, a quarter of the population has i think at least one shot of a vaccine. how careful do we need to be and how does your company fit in >> the key not just to reopen
but to reopen safely and to stay open we use the modification of a previous platform and already in this platform of using health to determine access control since then we have been partnering with the yankees and angels and other venues like offices, schools and corporate events and testing and vaccine verification which are important components of safety going forward. >> how does this work for a corporate campus looking to reopen maybe you swiped a badge to get into a building. what are the added pieces that a system like cleared for, the software platform, can help to monitor and what needs to be in place to do the job? >> sure. the office is great office but we use the platform to integrate into anything. we don't have a traditional app per se we are the middle ware that integrates into other people's apps and software platforms
alike corporate websites so we use the software to identify who the person is, use the health information that they put and then follow the business rules for each individual client like for in new york city there's different rules to come back than other states so we use the states and business rules of the facilities to really perform what the company or the client of any sort of a venue doo to get back into the office and reopen. >> what is your expectation how long this software and these processes remain a part of our society? some people might say by the time most people are vaccinated we don't need this anymore yrnd we continue playing for it? >> there's issues here and it's a layered question so if you think about it, there's so many issues that are relevant to the question what's the rate of vaccination 14% with both shots already and this will roll out over time and what is the ultimate by august
60%? 90%? we don't know. if you look at the polls 40% of people are reluctant to get vaccinated and we'll see how that is after the summer when people see that it's fairly safe to do. you also mentioned how long will we be livinging with this? >> abdelkader be a while i definitely get your point. we will have to have to leave it there unfortunately but thank you, doctor. >> okay. thank you. that does fit "the exchange." "power lunch" begins after this quick break. my financial professional explained to me all the ways nationwide can help protect financial futures in peytonville. nationwide can help the greens get lifetime income because their son kyle is moving back home and could help set up a financial plan for mrs. garcia. and he explained how nationwide can help mr. paisley retire early and spend more time with his pal, peyton. and their new band. exactly! yeah. don't forget the band.
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good afternoon, everyone welcome to "power lunch. along with melissa lee in a moment, intel making a $20 billion bet on two new chip manufacturing plants in the u.s. but will going all in pay off for the stock? we'll question that and get answers for you. slowing demand in oil as global lockdowns continue and a possible disruption in the suze canal. we have the