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tv   Squawk on the Street  CNBC  June 14, 2021 9:00am-11:00am EDT

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doge coin, an green across the board, and trying to recapture that 40,000 level, i'll send things back to you >> thank you very much, dom. a very quick final check on the markets you will see this morning that the futures for the dow down by close to 35 points right now. it is monday morning andrew, we'll see you back here tomorrow, and folks, we will see you back here then, too. right now time for "squawk on the street." good morning, welcome to "squawk on the street," i'm scott, with jim cramer at the new york stock exchange. carl and david have the morning off. let's look at futures right now as we start this monday morning, dow opened lower by 37 and s&p basically flat, and nasdaq a little bit of a winner this morning up 20 and rates are in check and that's probably the reason why the nasdaq likes that thus far the road map starts with inflation risk to the market goldman says fears are probably
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misplaced, billionaire hedge funder paul tudor jones says bet heavily on every inflation trade if the fed keeps ignoring higher prices cryptocurrency, bitcoin bounce, as elon musk says tesla could accept it again and lordstown shakeup, the ceo and cfo are out this morning, shares are tumbling, ahead of the open. jim, great to be back with you here. >> yes. >> for the first time in seemingly forever. my first trip down here. paul tudor jones though, i couldn't stop taking notes fast enough because i thought everything he said was a road map for how we should be thinking about the markets this week, with the fed meeting coming up midweek. >> i would like to go over everything that has happened to this point, with the research, what's going on with paper, and what people are saying i stopped because of paul tudor jones, because he is such an influential person, i think people, anyone who has worked with him knows, he is a great
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person, and he did lay out, a rather stark view about what's going to happen later this week, so for anyone who is trying to make sense of what can happen, he did indeed have it on a silver platter. >> teed up the debate so well. >> yes. >> as to what is taking place in the marketplace right now, wha the fed should do, and when, and are things overheated or not and what happens if the fed actually does talk about tapering, and acknowledge that they're moving closer, he says there's going to be a taper tantrum all this against the backdrop of the s&p 500 at a closing high. >> look, if you listen to him, and you listen closely, what he's saying is there probably ill be a stay the course, and stay the course, he's all in, and you got the one, bitcoin, you can argue it is gold, or frankly go back to freeport, go back to caterpillar and alcoa, with a number bump, go back to those stocks, which is not what the market was doing last week
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those stocks cooled off. take a look at caterpillar, one i really focus on, just as kind of an analog, just crushed and we went back to faang and apple, go back to calling it faang, but we were buying the drug stocks furiously, including ones that aren't doing well, so obviously, to me, the market is out of singh, with what paul tudor jones is saying which means wednesday is going to be incredibly dramatic either way they either have a taper tantrum. the market goes down or we have a totally different trade that starts going higher from last week i don't even know whether he knew what he was saying as earthshaking as it was. >> he said that the nasdaq, if the fed, let's say the fed does nothing this week and says nothing and sort of stays the course, he says the nasdaq could go up another 20%. >> boom. >> between now and the end of the year. >> and with the buying >> what he is saying is look, business is not going to cool
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down and you could be in those stocks, i like the combination of the barbell, and like our friend stephane, i want to be in the metals and i think those go higher and i want to be certainly in anything involving just rapid industrial, but he's also saying be in the semis because that's what the nasdaq is, and that group has fallen out of favor my head was spinning of because what it said to me was, somebody's going to be so wrong this week, that the turmoil, on a wednesday in june, where, you know, people aren't even paying attention, the turmoil is going to be radical. and he says it in the usual calm manner, but i was taking notes and saying oh, my, wednesday, you know, i didn't think it was going to be that big a deal. everyone kind of felt it was going to be business as usual. he's saying it is not business as usual. >> anything but. >> he said right now 5%, gold, 5% cash, 5% commodities, 5%
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bitcoin, and i'm not sure what to do with the other 80%, i need to wait to see what the fed says, if anything, on wednesday, and then i'm going to position myself accordingly >> well, look, i found myself thinking, but what's tepper going to say because he laid out the agenda, who is interviewing people and again, i say to myself, i want people at home to recognize, these are not the typical billionaires not the good billionaire versus the bad billionaire in the "new york times." a guy like tepper might say, you buy the banks in the situation, if there is a taper tantrum. >> that's part of the re-flation trade, is it not >> i think it is but he may say look, you want to buy for volatility and gold and i think what's going to happen is not what's expected, and you've got to tune in to his programs, to his, to the conference, you've got to tune in to the goldman piece today, which is basically jay's right,
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i'm with jay >> the bond market is suggesting that, actually the overall stock market, too, is suggesting that jay powell is right. >> the bond market is screaming, ignore paul tudor jones. >> yes. >> we've got this. >> ptg, he will have an acl, i don't know, it's going to be something, an achilles tear, he's not going to be on the field, but the goldman piece, i believe that transitory has a different meaning. it means that the supply chain will catch up. for instance, campbell soup last week, it is a good company, when you actually drill down to the quarter, they had supply chain issue, they're not going to have supply chain issues this quarters, why? because the ceo who is a smart guy said we're not going to have it, you can cure supply chain. you can cure semi. you can cure, there is a great article today about middlemen, semis, not being able to find it, but believe me, you can, if the semiconductor companie decided we're not all going to chase high performance
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computing, and cell phone, then you would get it the foundries would have different orders entirely. and global foundries would have different orders and yes, you would see taiwan semi and different orders. i was hoping that he would be, the sum total of a paul tudor jones, what he said, doesn't make me feel good, obviously he wasn't there to make me feel good. >> maybe he was just telling it like it is and sometime does itting and when you rip a band-aid off like he thinks maybe they should do, it doesn't feel that good, at least momentarily but you get over, it and he said even if they do begin this taper, there's going to be a tantrum, but i think his exact words, it doesn't mean it's over. >> look. paul tudor jones by the way is basically an optimism. that's the way he leads his life those of us who have been able to have the joy of working with him, to be able to make money and give money to charity know that his in ate optimism, it is still it still subfuses what he says for us, but i would also
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argue if you were listening to him and believing him tuesday, you might want to reallocate your portfolio. >> goldman has another note out today that there is not going to be any taper talk at the june meeting. ptj is on an island in some respects beyond just being in manhattan, i think, is where he is. >> the guy was, i'm a golden view guy i'm not saying it is sleepy wednesday. and i'm going to focus on a couple of key gains that are coming up in the nba i am just saying that, jay is going to stay the course, he's not going to acknowledge that there's still, that chipotle raised wages 4%. because he, look, he genuinely thinks that maybe people should make 4%, equal to the increase in the burrito, but i think jay powell is a revolutionary fed chair. i think he's saying that people don't make enough in this country, and until they make enough and until more people get a job, he's going to stay the
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course and these rich people who come on and say that there's, that he's causing inflation or stoking it, he's saying maybe it's time that we can get more people to work at higher wages maybe it's time that capital, the wealthy people, don't make as much money. and look, maybe because he was a banker, people think that's far afield, i think he's saying, we had to change the way america works. and until we get to our inflation target, i want people who worked at mcdonald's to make more money now you could say well, an unlikely guy, he shouldn't have any right to do that, i don't know dual mandate no one ever assays that -- ever says that people are underpaid i never heard a billionaire come on and say you know what, i've been watching corporate america and the people who are making 100 million, the ceos, they should write checks to the people who make less at their company. no one says that is that too robinhood-ish of any
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forum? scott, there are too many people who don't make enough. and there's too few people who make billions. and that's this whole issue that the pro publica, that's what america doesn't, believe me, if you're a billionaire, you should be saying, how do i prevent an insurrection, and how close on january 6th did we come to a successful insurrection? so i think the billionaires ought to unite and find out how to give money to actual people and not claim that we can allocate charity better than the government that's the point, that's not the point. and if you're a billionaire, you ought to think about what can happen in this country, because what happened in russia, a couple of billionaires and the rest of the people said this is wrong, and lennon gets to the finland station and he gets to russia, and he says this is wrong and lenin is nobody, and then suddenly lenin is a dictator who is killing people you don't want that. why is that so far afield?
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>> i think he has thoughtfully been thinking about those question force an awfully long period of time and that is there y-there is -- why there is a robinhood to begin with. >> and he is not in the majority paul tudor jones, i mean i did a conference for him last year and i got a personal letter, i'm a sucker, i showed my wife, listen, you can count on me to do anything and i explained to her, i said do you know that you can count on him to do anything for him, because you helped? this man, i'm not saying, i don't want to make this man into king. >> if he was there, would be no more bitcoin. >> right there would be no more bitcoin. >> which we will get to in two seconds. >> and for more wealth for people who don't have wealth and i like that. >> on the bitcoin thing, i do want to ask you about that he said if he were king for a day, we stop the mining of it because of the environmental issues but another person who has been thinking a lot about the environmental issues of bitcoin is elon musk, and now bitcoin, you see what it is doing this morning, it is up a lot, why, because he said tesla may start accepting it again if the environmental issues are
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taking care of and you see bitcoin this morning, there it is, it is up 7%, i think it was ivan up more than that. >> but we have to do something about that and we have to do something about the idea that this is a currency when one person can tweet and just have it go sfrats fe -- stratospheric or up a lot. to revert to paul tudor jones, i talked about the idea of raising margin rate, and i think if you push him and andrew did, and there is only so much time with paul tudor jones, the market rates should go up for crypto. >> let's hear what he said about that very topic. >> when i was fed chair, i would have raised marginal requirements two years ago i would have said okay, we're going to experiment with an unproven, untried negative real rate, economic program, it is going to encourage a lot of
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leverage, i'm going to raise margin requirements, because i want to signal you need to be prudent, we want you, yes, we want asset prices to rise, we want you to take risks, we want to extend duration, but you need to be prudent in how you use your leverage. and what you invest in >> okay, now, you know, i'm sure the reddit crowd is listening to what he said and okay, boomer, whatever. >> oh, yes. >> boomer. >> what do you make of ptj's case there. >> here's what's happening you go back to what happened with the great recession, if greenspan had just said, listen, mortgage rates are, we're going to take these up, i want banks to have far more equity, you have to put down, before you can get a house and we wouldn't have had the great recession, we wouldn't have had it, and the central bank was just dead wrong, i think that yes, margin rates should be really high, because it has to stop
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these people are trading, and do they, look, they already hate -- i'm in the top ten, what am i supposed to do change my life because these people hate me >> it's part of the reason why i think he said that things right now were back, you know what - >> right. >> part of the overall phenomenon about what he is witnessing with the way. so so-called meme stocks have traded and the overall environment that we've been seeing. >> i have been talking about corsair and i didn't expect it to be up 30% i read what reddit, what they said in wall street bets, it was an incoherent gibberish, okay? no, that guy should wear a suit so he can figure things out, that guy should become a boomer so they could figure things out, he was dumb as a bag of hammers. and hammers are so good, oh, my god, the hammer people are going to be so angry at me
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chain saw. >> i like it plywood. >> we will be back we will continue coming up, the rough ride continues for ev maker lordstown. both its ceo and cfo stepping down that stock, there it is, taking a hit, down 16%, pre-market. we will give you more details when "squawk on the street" returns. >> we've never said we had orders we don't have a product yet, by definition we can't have orders. we have very robust interest and that's what they are, they are letters of interest, you can't do any more than that in this stage. so i don't think anybody thought that we had actual orders. right? that's just not the nature of that's just not the nature of this business. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies to hkly overcome any obstacle ... without all of this. oh, that is better.
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shares of electric truck maker lordstown tumbling in the pre-market, both the ceo and cfo have resigned. our phil lebeau joins us now with more of those details good morning, phil >> scott, this shakeup is not a huge surprise given the questions that were mounting regarding lordstown motors and some of the claims called into question bay short seller just three months ago as you take a look at shares of lordstown, remember what you have right now are the ceo and the cfo, they have both resigned, so they're out immediately. the ceo steve burn, he really provided the vision for lordstown motors and he also was behind so comments that were ultimately a part of the independent investigation. he not only resigned as ceo, he's also off the company's board of directors, immediately. i mentioned that independent investigation, lordstown,
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announcing this morning, the results of that independent investigation that it commissioned and gabe, this was looking into -- and gain, this was looking into the allegations from hindenburg research, which essentially said, look, the endurance and the claims about orders are a bunch of bull, well, they say that most of the claims from hindenburg research were false and misleading. however, lordstown's investigation did find that there were issues surrounding some of the statements regarding preorders for the endurance, so now the company moves forward with angela strand, becoming the executive chair woman while they search for a ceo bottom line is this, guys. they don't have a lot of cash and they've already said that they plan to have the endurance go into production by the end of september. that is really called into question now that the company is looking for new leadership, and can it get there or what happens next for lordstown, the big question that investors are asking this morning. >> okay, phil, i thought that
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was great reporting. let me ask you this pointblank i said it on twitter you broke the story. steve had zero credibility what happens if they get a very good senior hand that you and i would respect, and then they go out and raise money? i mean isn't it possible that burns had to go? >> well, i think that most people looked at the fact that he did not have the leadership necessary to lead this company into the execution of production look, joe smack from rbc was out this morning saying he wasn't the right guy. if they get the right person, jim, somebody who can come in who has both the operational expertise, as well as the background within the auto industry, to say look, we're going to have to make some deals here, whether it's raising cash, whether it's striking an agreement with somebody, they've got some assets, jim, they've got that plant, and they've got some tooling within that plant, now the question is how do you get to production? their first mover advantage was really the only advantage that they had, that they could say we're going to roll out an electric pick-up truck before
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anybody else, if they don't start production by the end of september, what advantage do they have? are you telling me that fleet operators are going to say yeah, i'm going to go with this untested vehicle from a company that hasn't built a single vehicle as opposed to the new f-150 lightning. why would i go with the f-150 lightning? they've only sold 48 million f series over the history, why would anybody do that? i mean i'm trying to be facetious here but you know what i'm getting at, somebody has to come in and they have to make moves immediately. this is not something where somebody can come in and let me see what's under the tent, no, you got to move quickly. >> fairy tales, we want farry tales to come true and i thought it could happen with lordstown, but you're just spot on. i mean maybe they just have to reorganize and maybe they don't make it, but phil, wasn't this a great dream, that we thought could be an american story >> it could still be a great
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dream, but they got to move quick. >> i mean fairy tales are nice and all of that, jim, but not so much money on the job for investors who have piled into this name, based on optimism and other stuff. but for another time all right, phil, thank you. up nt,ex cramer's mad dash and countdown to the opening bell do you struggle with occasional nerve aches, weakness or discomfort in your hands or feet? ing nervive nerve relief from the world's number 1 selling nerve care company. as we age, natural changes to our nerves occur which can lead to occasional discomfort. nervive contains b complex vitamins that nourish nerves, build nerve insulation and enhance nerve communication. and, alpha-lipoic acid, which relieves occasional nerve aches, weakness and discomfort. live your life with less nerve discomfort with nervive nerve relief.
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time for cramer's mad dash, as we countdown to the opening bell, today in meme mania -- >> corsair, i want to spend a second on the fundamentals it is a souped up logi-tech. logi-tech has been a great stock. the high performance equipment
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you use in e sports and i think esports are here to stay and absolutely terrific story, i had bobby on here's the problem le actual sellers who come out, like wendy's, the meme stocks require gigantic short position, right? they require lots of hedge funds betting the wrong way and just so you know, the hedge funds taking it up and i don't know why the meme people think they have a monopoly or whatever they play with, but whoever is the people, the know name people who think that they're great, no wall street analyst could move corsair this big and people who own it and waiting for it to go to 37, and it's at 41, those people are not going to turn buyers they're sellers. >> well, the hedge fund folks are pretty good at the momentum game, too. >> the meme people don't understand they are literally stooges and tools for hedge funds. they think they are hurting hedge funds. you're a tool. >> the opening bell is just minutes away we'll be right back.
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it is somewhat disingenuous to say inflation is transitory, for them to say inflation is transitory, because if we look at the past episodes where inflation has been transitory, it was with reaction function to a federal reserve board, with a completely different mandate, right? they had a dual mandate. this fed is focused primarily on maximizing employment. >> this is where he suggested that, they do immediate course correction because there is no way in his mind, inflation and otherwise, wages, is transitory. >> i think with the after-shocks of pandemic, i think what jay powell is saying, can we understand each other, this is an amazing time, a lot of pent-up demand for everything right now, there won't be after everybody is vaccinated and we go to somewhat normal, and so i think that jay powell is saying, why do we have to just sit here
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and say it wasn't a pandemic, that it is just normal times you need to address it with a policy that makes it that says, whoa, let's see if it doesn't calm down. the fed is being prudent paul tudor jones, i want workers to get jobs, and let's see what life is like after the pandemic. being prudent. >> the bell at the big board global payments celebrating its entry into the fortune 500 and up in the nasdaq, qsi celebrating the listing. and that brings me to a cmg call, chipotle, speaking of inflation, they raised prices 4%, to offset that, and they get an upgrade today, ray jay, by cmg, $1800, do you like this call >> cmg, i can't believe the stock is as low as it is versus how it is doing. workers making 4%.
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really scary and billionaires making 28% in each year, not being taxed, that's scary to me, why can't workers make more than 4%, and why does everything go to the shareholders why, do the shareholders and the management have to make as much money short term, paying people 4%, and i can't find people, 4%, i mean what's the matter with, people making more money. where does it say that those people shouldn't make more money, without the fed taking radical action. >> that's why paul tudor jones looks at a situation like this and says don't tell me, jay powell, that inflation is transitory they're not going to roll back these menu increases they're not going to do that they're not going to roll back their wage increases and nobody else is either. >> we don't know that. that's another thing that i say we don't know. i mean i'll give you an example. okay, so i'm going over to american express, talking about small business, if there's a bank, if there's a store that
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opens, a bar, that opens near me, let's say i'm getting 8 buck for a beer that's not free beer and it's a beer that is pacifico which is a great beer. >> i will concur. >> excuse me. >> whici will concur. and the guy next door is getting four bucks what am i going to do? stay at 8? it is only a matter of time that i have to let things catch up. new restaurants, new stores open up that charge much less, and i got news for chipotle, and they have a great burrito and we all love it, and they will cut prices and believe me if someone comes in at a lower price, you will cut price. >> if there is enough consumer demand, to justify the price tike -- hikes, why would you roll back?
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and look what brian moynihan said, spending is up 19% on credit cards now, versus '19, not '20. >> that interview reassured me, we've had times here, in the country, not that long ago, where we had tremendous borrowing and things got bid up, but how about when we have tremendous savings and things got bid up look, if you're jim farley, and mary bar ra, they can make more cars if they can have the semiconductor but the semiconductor companies want to make chip force cell phones and for high performance computing but when we get to have feature rich semis and they will be there, and then car prices are going to come down i mean do you really think that the economy, just nothing happens other than they keep raising prices things occur i mean, look, we do the disruptive technology, right and they will disrupt this stuff. they are and i mean tesla is charging a lot of money, and jim farley,
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who is kind of a remarkable, i mean i don't know, what was he riding a motorcycle this weekend, i don't know, he is like a bit of a crazy man but that's okay. ford has never had a crazy man run that way, and he is going to defeat tesla he has said that he is going to bury tesla on "mad money." so maybe buries him by price look out lower price. on an electric pickup. farley is about what is going to happen paul tudor jones is about what is happening now. >> what do i want to do in things like technology, where you know, rates are in focus this week, especially, they're not moving now, ahead of the fed meeting and the decision and press conference on wednesday, and do i want to do the tom lee, what he says, look, faang is coming back? >> tom lee was great on your show. >> cathie wood says tech is coming back. >> she's buying stuff. >> and this other guy, named jim cramer was on our show earlier this week too and i agree that tech is coming back as a trade
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and i like amazon the best in that environment you agree with tom lee. >> another problem with the billionaire, they're so big, no stock ever means anything. they're just like the s&p. that's nonsense. i mean amazon is a great, i hope that amazon goes down because of the course correct because amazon is doing amazing things but the billionaires, everything is too small for billionaires. even a $2 trillion company is too small for a billionaire. the only billionaire that ever talks about a stock is tepper. >> they're not going to course correct this week. that's not going to happen >> well, i know. >> powell has already said it they're not doing it this week. >> would you rather say paul tudor jones is right >> that would be a shocker. >> jay already told you what he is going to do which is nothing. >> buy amazon. >> buy amazon. >> look at those buy those. >> powell, by virtue of doing nothing is saying buy technology stocks and tudor jones says the
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nasdaq could go up 20% if they continue to buy at their current pace which is no reason they won't, unless they shock us on wednesday. >> certain stocks will be good and certain stocks will be bad, but it doesn't mean anything for them like it just, like he's not talking about amazon, i mean he's talking about the world of stocks our viewers are not as rich as paul tudor jones is. i don't know, that's something that could be verified now, they're also, they're not buying corsair, that's a meme thing, but they might want to take a hard look at some of the faang names are or maybe they buy microsoft. microsoft does very well in that environment. so i mean amd could have a rally. look at nvidia i like to focus on what our viewers can do and our viewers are not just binary billionaires. they probably watch us, but there's probably like 150 of them that are that rich, that are -- >> you know, you have to believe
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that, some of our viewers, a good portion of our viewers, speaking of course corrections, the stocks that we talk about all the time, in the ark and cathie wood universe, that we know are popular, among retail traders and otherwise, let's not suggest that those stocks only go up when retail decides they should go up or not, the course correction and a lot of those names, has happened, too so they've come down a lot, and they've done a lot of the fed's work. >> think about your investment committee, it gives you granularity and you were talking and we were talking about large cap tech which is going to have a great week if the fed does what we all think it is, and then i don't want to call it fat stocks but i mean there is a percentage of what cathie wood buys, that needs to have incredibly low inflation, and low rates, and still may not do well but they're doing well, they're coming back. they're coming back. >> the other area that i think
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we should talk about is, speaking of, again, ptj, commodities trade, because i know people are looking at energy stocks and the way they traded lately and off to the races, and oil is pushing higher above $71 a barrel, towards 72. >> royal dutch, okay, talking about royal dutch, it might get rid of its shale - >> $10 million i think was the number. >> and pioneer, which is the most inquisitive company in this, scott sheffield, does another equity deal and gets that, you have to buy sheffield. now, i have said that these energy stocks were uninvestable, but then, they kind of listened, not to me, oh, better do what cramer says, my wife can say, can i remind you that your head has to be able to fit through the door, but when i look at the board of exxon. >> with engine number one. >> and the board some of the companies like the natural resources defense, the old days, because i have to be careful who
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i can say good things about on tv, but that board is almost a radical anti-fossil board. and good luck at exxon i mean that board is basically saying you better start embracing plug power shoe start embracing alternative energies -- you should start embracing alternative energies because exxon never cared about this stuff this is what has changed and why the stocks become investable if you look at the exxon board, that could very well be a board that devoted to anti-fossil fuel. >> how long do you think it is going to be before you're watching a football game or whatever and you see a commercial that touts exxon, for example, as the new exxon? right? and they're thinking about - >> they ought to do it. >> they're thinking about the ways of the future and beyond fossil fuel, as you're talking about, and opening yourself up to a new class of investor, who wouldn't touch it with a ten foot pole. >> that's what they need to do they need to be on the one and the four and the sunday night game that's who they have to attract. >> but i can visualize this
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actually doing what you're talking about. >> absolutely. we're the new exxon. we're no longer as bad as we used to be we're like cows are worse than we are cows are bad i mean if you look at clean energy fuels, clme, stock is going up, they renew natural gas, like belching cows, but exxon, belching cows, these things, elmer and elsy, they're worse than we are. but i don't mean to be too facetious. they could say we are investing a lot in it, and larry fink started this think he basically said look, we running abouts >> blackrock. >> we run billions, and he's more important than that he's more important than exxon's board. >> i'm so glad that you went there, with blackrock, and larry fink, because morgan stanley,
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today says black rock is best positioned to benefit from esg investing. >> they are. >> they put it in sort of one of their, you know, they upgraded it today, or reaffirmed it but it's blackrock, it's schwab and wells fargo as their top picks in the financial space right now, and black rock, they singled out specifically as best positioned in esg and that plays right into the engine number one and exxon win. right? >> i like that thesis so much. that is a great thesis that truly is a great thesis they are the big beneficiary, because they're the most thoughtful larry fink is the person that we all watch. why? because he is really thoughtful. like tom lee, thoughtful we can have thoughtful and not thoughtful >> well, you have to walk the talk, right? you can't have larry fink write these letters that are talking about, you know, longer-term plays and thinking in the big picture, and esg, and blah-blah-blah, and then blackrock votes the other way. right? at some point one foot has to
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catch up with the other foot. >> and engine number one, okay the guys from tulane, a little different, oil and gas, gets it, but engine number one, won a battle against exxon no larry fink and blackrock won a battle against exxon engine number one is just a catalyst engine number one, i don't want to be too flustered here, but engine number one is not a player they're not a player. >> they're small no one had ever heard about them before that, but it was a watershed moment. >> they beat exxon, which ten years ago, was the largest company in the world they beat john d. rockefeller. >> dow is down and nasdaq is higher probably has to do something with the 10-year. >> scott, great to see you come by and say hello. >> a flattish open up new highs anded brettth last week was pretty -- and the breadth last
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week was pretty darn good. that commodity play, tall tudor jones was talking about, very flattish banks flattish and more consumer staples and health care, modestly on the down side, but overall, i'd say this is either or, positive or negative, less than about 0.2% here the markets this week, the important thing is the fed meeting and new high, the breadth is excellent in the last week or so and a good sign for the market, that's what i watched, that line, and negatives of course is, peak everything, we've been talking about that for six or seven weeks and still a ways on the mark, but maybe, maybe if the fed can come out and talk about perhaps maybe a little further down the road on rate hikes on the dot plot, all sorts of opinion, all over the place, on the fed meeting, there is really not a consensus on what they're going to say, if anything, the big debate is why are bond yields so low at this point? what is it signaling is it signaling slower growth than anticipated or even a deceleration in growth of some kind here. remember, a lot of people very nervous about buying value
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that's been a big winner this year, when you get a deceleration in growth here. so if you look at the value versus growth trend in 2021, i pointed out last week, it's been growth value, which is one of those rare times in the last six or seven year, where values really had a good start over growth, and 18%, 17% versus 9% and owned the s&p, splilt the difference and up 13% what's value value is traditionally associated with cyclical stocks and industrials, material stocks, and energy stocks. and those stocks have done well, but in the last few weeks, the value trade has faltered and there has been some concern about deceleration in growth, so if you look at the classical value names, companies like nucor, freeport mcmoran, kansas city southern, they have faltered in the last several weeks. they had a great year, they had all outperformed for the first time in many years over growth stocks growth traditional lay technology and health care stocks, so the big debate is what happens the fed could influence this debate very easily this week
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and we want to keep an eye on that paul tudor jones was talking about the possibility going very long into the re-flation trade, into the commodity play. unfortunately the market is very much there this play happened in january, february, and march. and this is xle, the energy sector, up 46% that's not a typo. when is the last time that ever happened it's been many, many years since you've seen energy outperform and material, the two great stock commodity plays that are out there. there are commodity etfs, theres a's one of them for 26% that owns commodity futures, as well. and there is believe it or not an inflation etf that started earlier this year and we have the fellow that started that owns companies that are associated with high inflation, or that would do better, with high inflation what's that? a lot of them are land companies, for example, texas pacific land, they do land lease, in texas, on oil, and gas, and that's up 110% this year and brigham minerals, what you would expect, a mineral company,
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archer daniels midland, outperforming the markets dramatically, and the s&p is up 13%. and franco-nevada, a lot of the small gold mining companies also potential plays on inflation so scott, the bottom line is of course paul tudor jones has a great point here, but the market is there and the question now is whether there is another leg up in the commodity trade but from the commodity people, it's been a great year and a year they haven't seen in a very, very long time scott, back to you. >> yes, good stuff, bob. look forward to seeing you in person as well. rick santelli in chicago now. hey, rick. >> good morning, scott looking at a 10-year, since the employment report a week ago friday, you will see that we have definitely given up some yield. prices have accelerated a bit. and do remember, that that disappointment at 559,000 was only a little less stayed, because it was less disappointing than the previous report, for april, at 266,000, so let's start the chart there
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and you can see, we're up at 170. the point is, that if you listen to paul tudor jones and the single pillar theory, all about jobs, jobs, jobs, things fit together pretty well look at the nasdaq versus 10-year yields, since the april jobs report, in early may and you can really see that they have definitely singhed together, especially if you start them out about one-third from the left side and moved to the right, you can see, exactly, the more the yields go down, the more they go up and the crb index, this chart goes back to 2015, and you can clearly see, it's not quite six years, but they are elevated rates and whether that elevation is meant to be transient or not, who's going to lay their entire bet on the fact that well, it seems though, sometimes those dot plots don't exactly work out as predicting the future, and i think paul tudor jones's interview this morning made a lot of sense is he right? he runs a commodity fund
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they're always worried about inflation. you take your kid to a cobbler, most likely needs new soles on his shoes, you can put together the math any way you want. and finally on the foreign exchange market, and the dollar, it certainly looks like failing to reach the highest level since the beginning of the year. it's slowly turning which correlates with a very dovish ecb, christine lagarde and maybe the higher prices will live to fight another month. >> back to you. >> thank you very much, rick santelli. still to come the ceo of novamax, the vaccine proved 90% effective overall in a late stage trial. >> dow was down triple digits off the open down 94 points right now and nasdaq bucking that. up a third of a percent. we'll be right back.
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time for stop trading. >> when they come out with something that's very big, very thoughtful, versus nonthoughtful. they're coming out today and saying they reiterate to buy nike, not expecting a positive report, why, they're worried about china. they also say that china could be a little bit longer term than people realize are they talking about the boycott? it's just a subtle theme throughout this piece, with just as china not good. >> prc is not that friendly. biden goes over, everyone seems united not to like china >> nike shares are down right now about 1%, and they really have been a disappointment this year. >> a total dog that's my east town accent coming out i think when you look at nike, it's china that's worrisome because team wall, and maybe the prc says we really like the
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adidas they don't do this stuff, or maybe someone asks, someone asks john donahoe, how do you feel about religious freedom. >> isn't it a matter of time that someone asks him that if they haven't already >> if he cares about colin kaepernick and company, how can they not care about billions of people being persecuted. someone should ask if he favors religious premium. >> it's the trickiest question in american business by far. how you deal with that issue. >> of course i favor it, i hope the chinese will abide by it. >> what's on mad tonight >> american express. a lot of news we're going to break about how small business is going to benefit from steve squeri, and i have to tell you, i will say that the fin techs that are out there that have had a free ride, look out, this man knows more boy is he competitive. likes sports, too, some of the
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wrong teams, sadly, but he likes sports. >> moynahan was talking about a little bit of that issue, too, the fintechs versus the other guys. >> i say look out. american express has a lot of people with that card in their wallet, including my kids because it is cash for the my len -- millennials. >> and coming up, the ceo of inn novovak, a first on cnbc interview. interview. stay here.eal estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings.
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good monday morning, welcome to another hour of "squawk on the street," i'm scott walker with morgan brennan, we are live from post nine at the new york stock exchange, carl and david have the morning off today take a look at the market picture. dow is under a little bit of pressure to start things up. down 1/3 of 1%, nasdaq going the other direction by nearly the same percentage point amount, up about 43 points, morgan. >> let's dig deeper, we're 30 minutes into the trading session. here are three big movements novavax soaring after the vaccine improved 93% effective in late stage trial data
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do not miss the ceo who's going to join us in just a few moments on the show. those shares higher this morning, and chipotle, a strong by over raymond james, with the recent menu price increases would push second half profits beyond forecasts you can see that's price increases in the stock with shares up nearly 3%. we're going to end with lordstown motors, announcing the resignation of the company's cfo, and ceo, after warning there was doubt that could continue after a growing concern. and announcing results of the probe into the hindenburg research report saying the majority of the report was misleading but there were some accuracy issues around preorders, that was all putting shares of lordstown motor under pressure, down about 20% right now. >> nasty looking morning so far. legendary investor, paul tudor jones on "squawk box" discussing the fed and
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inflation. >> if they treat these numbers, if they treat them with nonchalance, then i think it's just a green light to bet heavily on every inflation trade. >> joining us now, s.d., the steefls chief equity strategist, barry banister s.t., p.t.j. set up for us, he said the fed needed a course correction, and called the most important meeting of jay powell's tenure. >> i don't think we should have such high expectations from the fed. at this point, they really seem to have a set path in mind with a set calendar they have mentioned an inclusive recovery time and again, labor market participation is not recovering this quickly as they would hope if you look under the hood of the unemployment numbers, black
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and hispanics, lower wages, all of those are recovering quite slowly the fed isn't going to rush because of two high cpi prints that were expected, even if they were a little bit high >> so barry, do you think the fed is going to say anything consequential this week? >> paul tudor jones says if they don't, he's going all in on the inflation trade, gold, commodities, crypto. >> one thing that's being overlooked and we're spending an awful lot of time on europe and the ecb and the fed. china has been tightening quite a bit, and if china is tightening leads as it always does to a lower pmi manufacturing index, both in the global and the u.s., then you're going to see a back half, particularly a second to third quarter deceleration in some of the value deflationary trades. the fed is probably going to do very little because permanent unemployment or youth six unemployment in this case is still at a level that the fed would delay the taper. >> so sd, if that's the case,
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and the fed does in, barry's words, very little this week, where do i want to be investing right now? >> i think there's more room in the reflation trade. i know it's slowed a little bit with treasury yields retreating, but i just don't think we have priced in all of the renepopeni in terms of the equity market, i think one of the questions might be how long this lasts but for now, there's more room to run. >> barry, i'll put the same question towards you, especially since you're pretty bearish relative to where you are in the market the forecast is down 10% by october? >> yeah, the pivot in the market clearly is going to be mid year. we're in june. i actually think the dollar goes up because it's counter cyclical, the chinese tightening is going to have a market effect it goes the opposite direction with the dollar. as the dollar goes up, the commodity prices such as the crv
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index or the industry commodity index, they're going to weaken and as that happens into the late summer and autumn, those names related to that will sell off. you know, much like the earnings in the first quarter which were extraordinary, buy the rumor, sell the fact. we're still pretty close to the same price we were around the 7th of may on the s&p 500, so i don't expect much more lift for that trade i think we're in this topping out process, and i'm in the defensives >> esty, i want to get your thoughts on the treasury market. it seems primed according to a number of wall street analysts, primed for a sell off. how do you see it? >> positioning has remained short throughout we have had this rally recently. some of that could be seen as a short squeeze. the reality is positioning is still quite short. from my perspective, i think the question is what can really surprise the treasury market, what can surprise us enough to get the next leg up in yields.
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you know, we're not going to get -- inflation clearly wasn't enough of a catalyst nonform payrolls are going to rise and become stronger for the coming months. i don't know if that's enough of a surprise we have expectations on infrastructure it's true that at some point later in the year, growth is probably going to decelerate in china for sure, maybe in the u.s., maybe not quite into q3 but later on, i don't know what big boost could lead to that next leg up in yields. >> hey, barry, if you're right, is this a green light for the tech trade to start really coming back? we're looking at a ten-year, 148, you don't think powell is going to do much of anything this week that's going to be consequential. is that trade the place to be? >> yeah, that's a great question, scott. the growth trade could very well bubble up. the p.e. ratio is bordering on ridiculous, it could become
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quite sublime, you know, the p.e. on the tech stocks could go higher we calculated that on a cape operating basis, looking back over 100 years monthly, there have only been three years higher than today, and that was the very end of the 90s and 19 20s bull market. i think the fed is in a terrible mistake. they probably know that. that's why powell said froth at the end of april in referring to the market so we could build to a bubble, but we'll keep an eye on that as a item to consider as we get into the ladder third quarter of the year. >> the market is already kind of self-corrected in some of the most bubble areas too, right, that has to be noted by the fed, whether it's the arc stocks, nfts, the most frothy, some say part of the market. >> and you look at the cryptocurrency we think because of the
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deceleration of global money supply, and i use global m 2 translated into dollars, that has decelerated for march in over 22% year growth it's six month rate of change is down to 10%. as you shrink liquidity, bitcoin for five, six years has been moving lock step with global liquidity growth you're taking down the speculative aspects, you have taken the froth out. we had a correction in 1998 before the blow off in 99 to 2,000, it's something to consider. >> irrational kexuberance for four more years. etsy and barry, thank you so much. president biden is attending the nato leading summit in brussels, two days ahead of his highly anticipated meeting with russian president vladimir putin. our eamon javers is live in geneva, probably the best live shot of the day, eamon. >> reporter: morgan, that's
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right. the president is in brussels today. we have seen some of the action the at nato summit with the pictures of the leaders gathered together with the family photo of the nato leaders. the president had a weekend of diplomacy, now dealing with military issues with the nato alliance, and within the hour, we're going to see the president meeting with president erdogan of turkey, and take a look at points of tension in the past couple of years. so many of them having to do with who's buying which military equipment from who, there's the dispute over turkey's purchase of the s 400 missiles, dispute over the decision to recognizes 1915 armenian massacre as a genocide, and then there's the u.s. removal of turkey from the f 35 program we'll see the meeting between the two leaders coming up in just about an hour's time, and we'll watch for body language or readouts we can see in the wake of the get together to see how they resolved those issues, and
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of course all of this, morgan, su as you say is a preamble to vladimir putin in russia the security picture is ramping up we're seeing morevisible signs of military and security forces on the street as what you can imagine is going to be an epic lock down of the city of geneva coming up on wednesday back over to you. >> it's going to be a busy week. eamon javers will bring us the headlines throughout thank you for being with us this morning. as we head to a quick break. here's a look at our road map for the rest of the hour, including the ceo of novavax, first on cnbc on the company's covid-19 vaccine showing 90% efficacy overall. plus, bitcoin popping back above 40,000 after elon musk suggests tesla could accept the cryptocurrency again. >> and we're all about that space. on blue origin's first space flight sells for $28 million plus commission. we've got bish slla g owti ahead. ahead. do not go anywhere
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shares of novavax well off the highs, announcing its covid-19 vaccine had an efficacy rate of 90% overall. joining us is meg tirrell along with the ceo of novavax, meg >> thank you so much and stan erck joins us this morning a huge moment for novavax with the phase 2 results in the u.s. and mexico another vaccine with 90% efficacy tell us about what the results showed and also about the toll
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rehab -- tollerability. >> it's always good to talk with you. it's a big day today we have unblinded our biggest trial yet, which is 30,000 enrollees, and as you say, we've got 90% efficacy overall there's interesting tidbits in there. the variants across the world in this particular trial, there are a lot of variants, we had 82% of our disease was caused by variants, we had 93% efficacy against that, which was great. we have severe, moderate, we categorize, we had zero moderate to severe. 100% protection there, and so that's just tremendous data. we couldn't have asked for better we also had safety profile, and this is consistent throughout
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our u.k. phase three trial in south africa we have a very benign safety profile, and so that's going to be important as you say. >> well, you know, scott mentioned in the intro that the stock has given back some of its gains that we saw earlier this morning, and there seems to be a lot of questions about your timing for filing a regulatory clearance around the world, but also your manufacturing status there have been delays there, some questions about your confidence level in being able to achieve your goals of filing in the third quarter and being able to hit those manufacturing goals. tell us about where that stands and what you expect for when you will be able to start shipping this vaccine >> i think that what happened is the end of the first quarter when we gave our earnings report, we adjusted our forecast, our guidance to reflect it's more likely that we would be filing in the third quarter, rather than projecting in the second quarter, and the delays are just that it's all due to the manufacturing issues.
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and it's complicated we're now at full scale production, and across our plants now, so we have all been able to make large scale production, and what we have to do is before we file, we have to do a series of assays, that show that the match we make in the czech republic is the same as what we make in spain, and india. and it takes a lot of comparability assays you have to qualify the assays, and we're working day and night to do that, and we're in the process of doing the latter part, which is validating the assays, that is all required, and we put a package together to file, and we'll be doing it not just in the u.s., but we'll take that package and go into the uk, into europe, and very importantly in india and korea as well, and the regulators will then have an opportunity to assess that package. they already are because we have been doing it on a rolling basis. the only difference in the u.s.
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is the fda has asked once package is complete and filed, they want an extra 30 days to review it before we request the ua, so i think it's likely that we'll have these filed in the third quarter. i think it's likely that the fda will be flagged by a month, and that our first approval will come somewhere in the area of either india or mhra >> so when we last spoke, it was just a couple of weeks ago, i think you said that novavax had already manufactured something like 30 to 40 million doses. i'm wondering given that you received $1.6 billion in funding operation warp speed for your vacation program from the u.s., do those doses need to be controlled by the united states or could they be deployed elsewhere if you get clearance in another country first. >> we now know that the u.s. is feeling good about the supply of vaccine that they have, and they
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have been offering to donate substantial quantities to covx, which is to distribute vaccines to low and middle income countries. i think it's very possible that our supply in the u.s. could very well be used, could be directed to covax, which is fine with us because we also assigned a 1.1 billion dose commitment to covax, along with our partners of india, and those doses will be at the early doses, and this is good news actually, the early doses will be distributed to low and middle income countries and so we can start supplying in large quantities, those countries. >> stanley, it's morgan. congratulations on the data, and the news around that this morning. i am curious, and i realize you have certain deals and contracts in place, at least in the near and medium term, but with your
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vaccine poised to come to market amid all of the other vaccines that we see out there right now, too, how are you thinking about the pricing environment longer term >> well, longer term, i think we're, well, we're in great shape. i think the vaccine, there's still a large part, the majority of the world needs a standard vaccine, two-dose vaccine, and as you know, our vaccine is very stable, and suitable for distribution anywhere in the globe so that will be our goal to make as much material for that but longer term, and in fact, i think in the u.s. in particular, i think we're going to have a huge market for a booster, our collective levels of antibody wanes after six to 12 months, and it's clear we're all going to need at least one boost and maybe on an annual basis or some period of time after that to be determined when we get data, but that booster market is going to be very large, both in high
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income countries and globally. go ahead. >> forgive me, no, you finish your thought, please. >> we think our vaccine is best suited to be a booster vaccine because we're in a study right now that's being run by oxford university in the uk that's taking our vaccine and moderna's vaccine or pfizers and one of the j&j vaccines, and using those to boost people who had different vaccines six months ago, and so it's called a mix and match study, so out of that study, we're going to have a very nice comparable safety profile between the vaccines, and plus i think those data are coming out really soon, and then followed about a month later by the different immune responses so that will be telling to how the market shapes out for boosters >> this is scott, forgive me for stepping on your toes there, sir, i wanted to follow on
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something you want earlier you said 82% of the disease came from variants and that there was 93% efficacy against variants, does that include the most worrisome variant right now, the delta variant? >> it does it includes, yes, it was mostly the u.k. variant, but it includes the delta variant and the gamma variant and the alpha variant, the bader variant so we had a mix of all of them, 93% efficacy against them, and it might be good to point out, the other group that was sequenced which had more like the original wuhan strain, we had 100% efficacy, so just around the clock, we had great data >> yeah, that's really good to hear. >> stan erck we appreciate you being with us this morning it is good news, scott i'll note, from what stan said,
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most of the variants, appear to be the b.1.1.7 variant, the u.k. variant or alpha as it's now known, one of the b 1667, .1, .2, we don't know a whole lot from this data, is that fair, stan? >> that is fair. >> on the delta variant. okay thank you so much. we really appreciate you being with us. and morgan, i'm sending it back to you. >> and our thanks to meg tirrell as well. still to come, $28 million for 11 minutes in space. we've got a closer look at that blue origin option that happened over the weekend that's coming up next, but first, the cnbc evolve global summit is coming up on june 16th, so this wednesday, we're gathering leaders and innovators from around the world for provocative conversations and to share strategies and tactics necessary for adapting, innovating and transforming this new era of business. you will not want to miss that we'll be right back. . it's a new era for business with singapore.
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>> for travel in china. >> it's a new era of innovation. >> of business for hong kong. >> for the travel industry >> finally in sight. >> get the latest from around the world. >> from around the world. >> from around the world. >> at cnbc's global summit live from london. >> get the latest from around the world at cnbc's global summit live june 16th.
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[ grunting ] i've spent my entire life in your shadow... and now, you spend the rest of yours livin' in mine. ♪ ♪ i ain't going anywhere little brother. we have 28 million in the front, and he looks very excited about it going three times, thanks john, and that is sold, $28 million to number 107 >> $28 million that was the amount of a winning bid, a flight to space, that will
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include jeff bezos and his brother mark saturday's option, has experienced selling space memorabilia, took less than ten minutes with over 20 buyers in attendance, the final price, $29.7 million. with the lion's share being donated to club for the future, which focuses on s.t.e.m. initiatives to inspire kids. we do not yet know who the person is as paperwork is being finalized. the identity is set for the coming weeks as is the name of the fourth passenger on the shepherd flight. nearly 7,600 people registered to bid and blue origin's head of astronaut sales noted they are engaging other auction participants for future missions so sales, perhaps, unofficially starting meantime, what does merely $30 million buy. after three days of trading in van horne, texas, a seat on the
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shepherd capsule will lift off on july 20th a. vertically launched subvert call rocket to some 65 miles babove earth or past the official recognized edge of space, three minutes of unbuckled weightlessness before the capsule lands with parachutes back in the west texas, desert. bragging rights as history is made as this is primed to be the first space flight of a paying passenger, a tourist, via a u.s. commercial company, and of course that buyer is doing so alongside bezos space tourism is becoming real, and as adam jonas, and morgan stanley put it last week, ahead of this auction, not only is bezos going to space, quote massive advertisement but the broader implications are quote demand will substantially exceed supply capacity for flights for several years to come and is a sign of validation of the core business model that thought process is perhaps
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the reason we have seen shares of the most direct competitor in sub orbital space travel, those shares even today are up 5% and scott, the other thing i would just note is we are continuing to see more space companies start to come to the public markets. the news over the weekend, we have reports that next gen acquisition 2, that that aspect is in talks to take virgin galactic's sister company, virgin orbit, public as well we know from speaking to sir richard branson earlier this year that that was on the table, shopping around for the possibility of a spac merger and of course that specific spac is the work of one of the board members on virgin galactic that's going to be one to watch in the coming weeks too. >> so you had 4 1/2 million dollars. i was just looking this up 4 1/2 million dollars paid to have lunch with buffet in 2019, so you get six times that,
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basically, for space and whatever else with bezos and company, and i'm sure you're not just going to like show up the day of the launch and say, hey, jeff, i'm so and so, it's nice to see you, let's get in the capsule and go you'll probably get other time to chat him up or whatever. >> they're in training a few days before that >> six times, 4 1/2 million with buffet and space. >> your name in history. >> the one thing that's not included, insurance, and that's going to become a bigger topic you see more space tourists, they're going to have to get covered by insurance we'll be talking about that too. >> maybe bezos should cover the cost of insurance for everybody on the flight, too, the dude is loaded, can't come up with that. chump change. >> for now it's excluded, if you can pay $28 million, i guess you can cover that. >> big premium let's hit our etf spotlight as we head to a quick break, taking a look at the semis, ticker xoxx, that's the sox, off its
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highs of the morning, up about 15% year to date there it is today, it's one of the group's biggest holdings, qualcomm saying it is prepared to invest in uk chip maker arm if its deal with innvidia is blocked by regulators. qualcomm not a big moverup, fractionally down double digits in the year, we're back in two in the year, we're back in two minutes, don't go anywhere ♪ ♪ ♪ ♪ ♪ ♪
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welcome back, i'm rahel solomon, and here is your cnbc news update at this hour let's begin with air travel in the u.s., coming back strong, apparently 2.1 million passengers went through tsa check points on sunday, slightly topping friday's count the numbers haven't been that high since last march. two americans have pleaded guilty in a tokyo courtroom to
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helping former nissan chief carlos ghosn escape from japan michael taylor, and peter taylor face a maximum of three years in prison israel has a new government for the first time in 12 years prime minister neftali bennett and his coalition cabinet posing there for a group photo this morning. that's after benjamin netanyahu was ousted in a contentious parliament session last anything and for a fifth time, a pekingese has won the top prize at the westminster dog show. 3-year-old wasabi beat out 23 competitors to be best in show morgan, back to you. >> that is a fluffy dog. >> yes >> super cute. >> yes, really cute. rahel solomon, thank you. bitcoin on the move this week, after a new promise from elon musk that tesla could resume bitcoin transactions in the future musk tweeting in response to
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accusations of market minneap, there's confirmation of reasonable, around 50% clean energy usage by minors with positive future trend. here to discuss the space and on the heels of launching state street's new digital asset division, nadine jakar, executive vice president of state street digital thank you for being with us today. >> thank you for having me good morning. >> so state street just launched this division. i mean, we can talk about, and we do every day the volatility of bitcoin and some of the other major cryptocurrencies, so the fact that tweets from one single man can move the price this dramatically as elon musk does, how are you entering the space, and why are you doing so now >> well, we're very excited with this new development i mean, this is a big move in, i don't know, as we're pivoting towards the future, so morgan, for us, it's more than
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cryptocurrency, it is really digitizing our environment, facili facilitating any type of digital investments for our clients and building the rails for the future it's crypto plus, that's how i look at it volatility comes with the territory, and we're extremely well equipped to handle it as our clients are set to enter that space. >> the way to think about it is this is basically state street's bet on defy, decentralized finance. >> precisely, we view this as the opportunity now to take what we do in the space, and traditionally, we have been, you know, a very operationally intensive organization as well as, you know, supporting our client's investment process, and now pivoting to take advantage of all the great technologies that are coming out in this space, helping our clients leverage, you know, smart contracts to your point,
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tokenization, those are areas that we believe will increase efficiency, increase the velocity of money in the system. hopefully create better liquidity pools, and allow our clients to take full advantage of everything this new digital economy has to offer >> so then, is it fair to say that this is really focused on the institutional money and infrastructure that's going to be needed around that kcoming into this asset class? >> absolutely, i mean, we are definitely -- we support institutional investors around the world. we're very honored to be able to support the world's biggest and most sophisticated investors worldwide, so this is really state street doing what it does best, which is leaning in, ensuring that the infrastructure is resilient, it's scaleable, and really allowed clients to take advantage of the new opportunities so that's why we're very excited about the set
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up of state street digital. >> we look forward to talking to you about it further as you stand this up and as we do get this bitcoin refresh tap root as it's being called later this year, nadine, thanks for being with us. >> thank you so much. >> as we head to break, watch ferrari, shares down 3 1/2%. goldman sachs double downgrading the stock to a sell, they know increasing capital spending and lower volume expectations, see it there, as we said, down 3 1/2% right now we'll be back. we'll be back. done.with uss, well in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it—
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economist david roesenberg thinks he knows why treasury deals are, more "squawk on the street" straight ahead
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the lexus es. every curve, every innovation, every feeling. a product of mastery. get 0.9% apr financing on the 2021 es 350. experience amazing at your lexus dealer. should the s.e.c. change its guidance on corporate disclosures, and ask companies to disclose climate related risk public comment ended yesterday major names are weighing in.
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diana olick following from washington with the latest. >> hi, scott, facebook, google and alphabet said we believe climate closures are critical to ensure companies follow through on stated climate commitments and to track collective progress toward addressing global warming. similar statements from blackrock and the business round table. republicans on the senate banking committee told the s.e.c. to reject a proposal saying it would discourage companies from going public. climate risk is a priority in corporate america. firms like the climate service are running in-depth scenarios for some of the largest corporations in the world. they look at physical risks like floods and fires, as well as transition risks for operations and supply chain as the world changes to a lower carbon economy. >> it's been an interesting evolution of the climate change conversation in corporate america over the last 24 months,
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i would say. so it's moved from climate risk understanding is nice to have to a need to have it's now seen as a business critical risk to measure and manage. >> lake says the largest growth in demand is from financial services, while companies are not yet forced to disclose climate risk, some of their largest investors are demanding it. >> you have to look at the risk management tools, and then you have to look at the metrics, and measurements associated and through our company engagement, we want companies to disclose and be transparent with us >> the biggest hurdle now is to create a standard for climate risk, how to qualify and quantify it, morgan. >> diana olick, thank you. ge is out with big news with its aviation business that kind of dove tails into this conversation our phil lebeau has that for us. hi, phil. >> big announcement from ge aviation, along with its french partner, saffron, they have the joint venture of cfm, here they
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were earlier in paris to announce an agreement, they're going to be developing a new, more fuel efficient commercial airplane engine, 20% more fuel initiate is the plan 20% lower emissions, entering service by the mid-2030s and a few minutes ago, the ceo of ge aviation told me, this is just a start, we can get even more fuel efficient. >> this new engine as it matures will burn 20% less of whatever fuel goes in there but if we look now at the metric of emissions of co 2, if we were to put sustainable aviation fuel into this engine, it would reduce the emissions by 80%. >> a lot at stake for ge and safran, that leads the market, pratt and bwhitney, ge, and rols
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royce. it will get ge to where they want to be. >> that's a technology maturation program that kwwe're going to be on from now to the middle of the next decade, the open fan, the hybrid electric, and the new materials, we believe we can get there. >> one last note as you take a look at shares of ge, they have extended their relationship with saffron. this joint venture now extends through 2050 a lot happening in terms of creating more fuel efficient engines and this is a big part of it with ge and saffron saying we can get at least 20% lower emissions. >> yeah, this is big news today, and if i'm correct, phil, this is, i think, the first time slattery has been on our air as well i am curious, as we have this conversation about sustainable fuels and the technology that will be involved to propel those into more main streak use, simultaneously, we have been getting comments from airbus, and boeing and hiydrogen, and
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that's not likely to be available until 2050, when we talk about sustainable fuels, what's on the table, there's in the near term. >> the problem is getting it to market, the developing is not the problem, it's getting to market sort of chicken or egg airlines said we'll use more saff, which is what everybody refers to it, be you have to have it ready to go, and those who produce saff, well, are you definitely going to commit to saff because it's a higher price than jet fuel. that's a developing market, it's going to time time to be extended. >> phil lebeau, thank you. june is pride month, and all month long, we'll be spotlighting cnbc contributors, business leaders, our own cnbc anchors and producers, here is francesca ceo andrew clark >> earlier in my career, i felt like i was acting out the role
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let's take a look at the biggest gainers and laggards on the s&p this adobe near the top 52-week high up 3%. a little over 3% occidental. fighting it out for the top spot laggards as well gainers. laggards down. we'll be right back. stick with us. fine. you can't beat turkey hill memories. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot.
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♪ more than this ♪ the street." cost of raw materials manufacturing and shipping rising as the economy reopens and companies deal with overwhelmed factories, clogged ports. our next guest is seeing rising commodity in transportation cost firsthand and retail demand soars. nick pincheck, snap-on chairman and ceo joins us now great to have you back on the show. >> how's it going, morgan? how are you? >> doing well, thanks. so the great debate around inflation, which we've been having for weeks now, and certainly in focus for investors awaiting the fed meeting that
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kicks off tomorrow, in terms of those higher costs, those input prices, and what that means in terms of your end markets and how, the strength you have to price your finished goods what are you seeing within snap-on? >> snap-on is a special company. both a distributor and manufacturer we're very vertically int integrated general companies, you see inflation, your job, find offsets. what we're doing as the market leader have ability to price you know that's a reasonable thing for us, that we can manage that fairly easily. whether we think this is transitory or not is another question coming out of a pandemic you would expect transitory things like that and we kind of expect it to be that way. the market, though is booming. i'll tell you this is an unusual situation. >> yeah. i mean -- >> our business is up -- go ahead. sorry. >> no. go ahead your business is up? >> our business is up double
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digits both in profit and earnings you know, we came out of the pandemic stronger than when we entered, but i was just with some grass roots people last weekend. our franchisees from all over the country. when i talk to them i was thinking about what other people have said. kind of paraphrasing what james cavil said, in the '92 election. it's psychology, stupid. people talk about stimulus and the catch-up stimulus mostly paying down debt it's really something more than that the psychology of the average consumer we see in garages and factories and our normal everyday customer, which snap-on deals with all the time, is very strong part of it is, this recession is different. you know the last recession was sort of caused by the norms of finance you know we didn't know how it happened people in the trenches didn't know when it was going to come this one, everybody's knows how it's going to finish and hearing
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the "all clear." i think it's going on forever. maybe it is not a coincidence that the roaring '20s followed the pandemic 100 years ago. >> getting back to the transitory debate. one area we've seen spike in prices and in recent inflation readings the vehicle market. you serve the vehicle market at least two of your different business segments. how is that propelling or benefiting your company now? >> it helps a lot. new vehicle sales don't make a difference for us. we're all about repair and the 281 million cars that end up car parting. rising -- rising used car prices which is a big component of that 5% inflation, makes a huge difference you know, the national association of manufacturers looks at this. one of the things -- it's not just the commodity prices themselves but also the labor that's important then it's, you know -- there are about 850,000 manufacturing jobs
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that are open now. jim cramer on your show before, getting salaries up, get them into manufacturing the idea there's 800,000 jobs available now, and these are jobs that keep your family warm and safe and dry, and one of the reasons why people don't go into it, i suppose, the skills don't match. why upscaling the american workforce is very important. the other thing, people view manufacturing jobs as consolation prize of our society. well, this pandemic should have taught us differently. because manufacturers were at their post working to keep our society from disintegrating while we engaged and defeated the covid. they're not the consolation fries but the heroes of this society. the idea there's open jobs, there's a lot of disenfranchised service, i get disillusioned former service employees that could be brought into this one of the reasons why the national association of manufacturers is launching this creators wanted effort to bring
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people into manufacturing. raise the median wages, and create in our domestic supply chain, which helps some of this supply question and make america stronger i think it's a great time for us krn >> can i ask you briefly before you go, ability to price is that code for our courts are up and we're passing it on? >> no, it's not code for our costs -- sour sourcing costs are up steel costs are up, of course. transportation costs are up, yes, but we have ability to cut into that. we spent a lot of time talking about lean and -- it's been in our dna for a long time and then we have ability to pass it on when it's visible in flation, because customers understand they value snap-on products and, therefore, willing to accept that, but we do our best like all manufacturers actually, if you're a ceo, this is your job. try to offset this thing rising prices happen all the time you know you look at fuel costs, much
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higher people went to pumps and thought they encountered senator jesse james. nowadays it's up and creating costs. we find offsets. what we can't, we pass it on >> all right nick pinchuck, thanks for joining us today. well, scott, a quick read on the markets before it closes out the hour here. s&p closed at a record high on friday, and certainly looked like we were poised to hit another record this morning, but we've since seen that come off somewhat i believe at session lows for s&p and dow. >> yep i still, thinking about what ptj, paul tudor jones said this morning, being bat-s crazy needing an immediate course correction and he is pretty much hedged to the max on inflation gold, commodities, bitcoin and more all-in on that if the fed doesn't have this immediate course correction that he thinks they should. >> of course we have that conversation as we
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see energy leading the s&p today as well. also tech, as we continue to have that rotation discussion in recent days, but speaks to oil at multiyear high. that's going to do it for us on "squawk on the street. "techcheck" starts right now ♪ happy monday welcome to "techcheck. i'm jon fortt with deirdre bosa. carl's got the morning off today, taken for a ride. investors question the viability of lordstown after half the suite resigns. microsoft's head's gaming on hemes of e3 and finally, facebook


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