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tv   Closing Bell  CNBC  December 1, 2021 3:00pm-5:00pm EST

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maybe not the kind of action you'd like to see on a bounce-back rally from those lows that we saw yesterday, right? >> it does speak to safety and the fact that there is a lot of uncertainty. >> even with a rally people are still going towards utilities. >> today the best offense is a good defense nice being with you, morgan. and thank you all for watching "power lunch." "closing bell" right now good afternoon welcome to "closing bell," everyone i'm wilfred frost in the new york stock exchange. it's the first day of december, and stocks are picking up where they left off in november with volatility, the major averages giving up big gains as we head into the final hour of trade >> welcome, everyone, i'm sara eisen. let's look at what is driving the action right now officials saying they have identified the first u.s. case of omicron variant in california that news sending stocks lower fed chair jay powell speaking on capitol hill reiterating again that a faster taper is a
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possibility. and salesforce down sharply and weighing heavily on the dow after fourth-quarter guidance missed the mark. 59 minutes left to go in this second >> tech investor dan niles will join us to discuss his biggest concern about the market amid this renewed volatility, and the select few ev names that he does invest in right now. plus, the other shoe drops shares of allbirds down. we'll speak exclusively with the company's co-ceo >> meg tirrell with the latest on the first case of the omicron variant being detected in the u.s. council of economic advisers chair is here to discuss the economic impact. and mike santoli tracking all the market action. let's kick it off with you, meg, and this news this afternoon, which did send stocks lower. >> yeah, sara, so the cdc, the san francisco department of health all confirming the first
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case of on"options action" has been identified there in san francisco. tested positive on november 29th we just learned from a briefing from san francisco that the patient had been fully vaccinated with the moderna vaccine but had not had a booster dose the person had mild symptoms and san francisco's public health department says that person has recovered. they're doing contact tracing. we heard from the cdc that all contacts that were identified as close contacts have tested negative so, of course, the u.s. becomes just the latest country of more than 20 now around the world who have confirmed cases of the omicron variant. public health officials would not be surprised to see more potentially here in the united states as our surveillance has been ramping up. dr. fauci was asked at the white house press briefing just now if anybody in the united states should be changing their behavior based on this finding here's what he said. >> if you look at the things that we have been recommending, they're just the same. we want to keep doing that and make sure we pay close attention to that.
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>> and we're hearing the same message from san francisco, no suggestion of new public health measures being put in place because of this. if you're fully vaccinated get boosted, if you're not vaccinated, get vaccinated, wear masks in crowded situations. the same things that we've been told this entire time we're still being told now guys >> meg tirrell, thanks so much as always. for more on what this means for the economy, let's bring in the chair of the council of economic advisers great to have you join us. what is your latest take on what this new variant could do to the economy? obviously we've seen some travel restrictions put in place. but, as yet, no major changes to domestic restrictions. >> right i think this is a really important question, and we are obviously eagerly monitoring and are anxiously awaiting the additional information that we'll learn about this variant it is just too early to tell, that, as dr. fauci said, we know
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that the most effective thing we can all do right now is to get vaccinated but it's too early to say. we don't know whether it's more transmissible. we don't know whether it's more severe we don't know how all the vaccines will hold truly but we do know that getting vaccinated is the most important thing. what we know is the american rescue plan provided the resources for us to work with the pharmaceutical companies to develop and be adaptable if we need to develop a booster, if we need to adjust how the vaccines are developed, we have the resources to do so as quickly as possible >> are you worried, though, that in the very least it will add to supply chain pressures and inflation pressures given that there have been some international travel restrictions, both from the u.s. but also from other countries? and clearly chair powell mentioned some of those fears yesterday. >> again, it's too early to tell obviously we're anxious about this we won't be through this
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pandemic until we are through this pandemic. it is why we are focused on getting people vaccinated. we're focused on getting the world vaccinated i will also highlight -- you bring up supply chains, it's why the president has been working so hard to make sure their reports are working as efficiently as possible, to ensure that trucks are able to unload containers and to get them into stores so that we can alleviate any congestion that may exist there. but it's just too early to truly know what the impact of this variant will be on our economic situation. >> are things getting better, cecilia, on the supply chain front? president biden said that everyone will have their christmas gifts, they will be on the shelves. he's been talking to retailers all week long making several speeches about it. have you seen a turn has that pressure been alleviated at all? >> what we know is that the dwell time, the amount of time that ships are waiting off ports in the ports of los angeles and off of california have come down significantly. we know that truckers are able
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to unload and to load much more efficiently because of efforts by the administration to help coordination at the ports. we know at the port of savannah they've been able to develop pop-up container ports, off-site areas so they can get the containers out of the ports so they can then be loaded onto trucks and delivered to stores so, we have every confidence, especially working with the retailers who have full faith and confidence that their shelves will be stocked. i am particularly impressed by the ceo of etsy saying that the millions of retailers that work with him, the small businesses feel like their supplies are better than they were this time last year. so, we're in a good position, households have the resources that they need to buy the presents for their loved ones because of the support that they got through the american rescue plan and our efforts to get the economy and the strong recovery we have to date. i have every faith that this holiday season will be a happy one for everybody. >> and indeed the ceo of etsy made those comments on this show
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yesterday, chair rouse that said on the flip side at the same time it seems that consensus now is that inflation is not subsiding, it is not transitory, and chair powell said as much yesterday is he and the fed behind the curve? >> well, look, i'm not going to comment on the fed i have full faith and confidence that they can do their monitory policy that they understand their book of business what i think we really understand is that the inflation is largely a product of what i call pandemic economics and the fact that this pandemic affected economies worldwide. so we've seen inflation is high in canada, the uk and germany. we are not alone so, yes, it's going to take us, we're going to have to work through this pandemic. what i think chair powell was reflecting is that transitory was never meant to mean it would
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be over in two weeks what he was reflecting is that it was tied through the pandemic as our consumption of goods and services rebalances to what it was before the pandemic, we will see inflation ease most forecasters expect it'll be about half of what it is today and next year and that it won't take hold, which is what we really meant by not being transitory >> what i'm wondering in that equation is what you think about wages and what's going on with the employment picture we're going to get another report obviously on friday. but the fact that we aren't seeing people really re-enter the labor market in huge numbers and wages are going up, and whether that is going to be part of the less transitory inflation, the one that stays with us for the future >> the impact of wages on prices is something we're all watching. to tate we don't believe that higher wages are materially what is behind the price increases.
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rather, they reflect that we see the wages increasing most rapidly in low-wage industries where there's a lot of face-to-face time and workers are saying that's a risky job, it wasn't a very well compensated job, and in order to get -- you to get me to risk my health and my life to take the job, i need to receive more compensation so, at the moment i believe that that's what's necessary to bring the labor market into equilibrium. i believe very strongly that as people are vaccinated, as they feel more safe getting to the labor market, they will come back but it's going to take some time we see progress every month. i'm expecting to see, you know, an additional -- we'll get another report on friday but we know we've created almost 6 million jobs since the start of this administration and i believe we will continue to see recovery. it won't be linear, but i believe we will continue to recover. >> what do you think gdp is next year, 2022
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>> i believe gdp will continue to be robust i believe even the fourth year it will be stronger. in terms of where we head for 2022, forecasters have it more in the 6% range. obviously that will depend on how severe this new variant is, whether it's more transmissible, whether the vaccines hold, which may provide some headwinds but i expect we will continue to see robust growth going into 2022 >> cecilia rouse, great to have you here today thank you for joining us >> thank you >> chair of the council of economic advisers. let's get to mike santoli for a look at the market, which has been giving back gains over the last couple hours. are you surprised we reacted to that news that the omicron variant is here in the u.s.? >> the manual the of the pullback was actually before the news hit obviously sort of tested a little bit once we got the confirmation of that case. it seemed as if it was a little
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bit of loss of faith by the buyers after we got through the fed chair powell's testimony and there was nothing particularly new. but also we are in that particular type of swirl of testing upside testing, downside testing that comes after a volatility storm, which is exactly what's been going on we regained half of the total peak to trough loss at today's highs and that's exactly the moment when the rally stalled. so we'll see if we have support where we got it. as i keep pointing out past few days, that's a bad line, but it's roughly around the september 2nd peak is also the 50-day average a lot of folks have been examining that doesn't say we have to get down there, but it's one place to mark where in fact a lot of folks would look for some potential traction in terms of the market index level versus the individual components, few different ways to look at it. i sometimes look at this reverse cap weighted etf the highest component, in other words it's exactly upside down and that actually has been
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leading most of the year so that was more of a stock picker's market. it paid to fade the biggest benchmark. no longer quite the case now you see the equal-weighted s&p also underperforming the market cap that tells you the story apple up again today microsoft up again today it's a bit more of a defensive tone and a lot of the more aggressive growth sectors really falling apart in the last couple of weeks so that's one reason why when the cyclicals go down there's not that many stocks in terms of sentiment, peak to trough look at the weekly investors intelligence bulls minus bears. this is the spread pullback nicely not quite to where it was after that september selloff, but the number of bears actually higher than it's been in 18 months. so i think you have had a reset of attitudes it's helpful, it's not enough to say that this little choppy volatility period is over or ending or we're going to go up higher right away. but i do think it's an ambiguous
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message when you had this response that didn't quite gain traction through the afternoon >> is defensives that are leading. utilities healthcare and staples the best-performing groups after the break the sneaker stock plummeting on the back of its first earnings report since going public we'll get reaction from the company's co-ceo he'll tell us what he thinks the street is getting wrong. dow has now gone negative, and we are down 72 points. selloff picks up steam here in this final hour. ♪ tv: mount everest, the tallest mountain on the face of the earth. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪
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to build a future of unlimited possibilities. take a look at allbirds plunging today following its first earnings report since going public q3 revenue growing by 33% compared to last year. that was better than expected but losses did widen due to the company's physical retail expansion. i talked to the co-founder and co ceo and asked him what he's telling investors about that wider loss i feel reich one of those in-between mistakes are made where the share count was wrong. it turns out that a technicality snagged us where we actually beat the bottom line for what people are expecting we were really happy with the
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performance of the quarter we're really strong growth year over year 33%. on a two-year basis, which is important given what's been going on with covid over 40% so we've been very pleased with that and great progress on gross margin important indicator for us and, frankly, the supply chain position that we put ourselves in sets us up great for q4 too >> some are pointing to the fact that the adjusted ebitda loss was actually better than expected so i take your point about the share count and related to the ipo. what's driving the double-digit growth, and what has been such a competitive market and environment for sneakers >> well, i think a lot of the backdrop has been very positive for us this year so, essentially, people casualizing their wardrobe and just, in general, the trend behind what we're doing unlocking a really thoughtful design that's for the on-the-go lifestyle is going great when people were sheltered in
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place, it was a tough time people bought slippers and running shoes and people didn't care what you look like. now our store traffic is recovering we have about 35 stores globally that's recovering really nicely. and our digital is just performing super well. and the team internally did a fabulous job of creating great new products right for the season and i think we set ourself up for capturing a lot of this very strong demand, particularly in the u.s. this holiday season and i do think more and more, sara, our whole mission as a company is to kind of utilize nature and harness that power to unlock something that feels better, feels more comfortable, performs better, and a lot more people are gravitating towards that mission every day, and that's something we're seeing in the data >> some investors are quibbling with the guidance as well. do you expect 23 to 24% growth this year. they see it as conservative especially given the growth rate you've seen this quarter so, what are you looking at in
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front of you as far as how confident you are that you can keep up this pace? >> yeah. the most important thing we're looking at is over the next five years we're calling for 20 to 30% growth consistently. and some years are going to be a bit more, some years are going to be where we don't expect to fall below it. and it's just a give-and-take variability. we're still a young company, but we feel very strong about how we're performing i would push people to consider the two-year lookback as something very important until we fully lap what was covid which created some very unpredictable dynamics with consumer demand. so once we get through that, that should be about q2 next year then we'll be looking really just back at the one-year. and currently we're seeing fantastic reacceleration >> to what extent, joey, are you facing supply chain issues and problems, some of the unusual materials that you use in your
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product, and does that help explain why we saw the big jump in inventories >> you know, quite the opposite actually what's been interesting is our unique set of materials has buttressed us against what is quite a difficult supply chain environment. we're finding that we don't have a lot of competition in the materials we use because we're actually typically the inventor or co-developing it with our industry partners. our material and supply chain is really nicely intact our partners on the manufacturing side have done phenomenally well navigating through a tricky situation with covid in asia and some of the restrictions related to that so we're actually in a fantastic position we actually think about our inventory as a weapon. so if you look at the sales, that's a backwards-looking number our balance sheet in the inventory is a forward-leaning indicator. and we're poised to strike and we chose to take our advantage supply chain situation to build up inventory so that we could capture what we expected to be a very robust demand in
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holidays into q1 and q2 '#22 and that's where we sit today. >> you had four new stores this quarter, i think 31 in total talk to us about the ambition here for a digital first company to move so aggressively into building out retail. >> we're really focused on that vertical retail model. having every transaction occur between our company and the consumer that's been the model we've built over the last five years now, it started digitally when we had one product but we always envisioned a critical and important fleet of stores to complement that. so, we have 35 today globally, 23 of those are in the u.s. and what we find is that when customers come to our store, and that's the first experience they have they have a wonderful shopping experience they love the product. there's no returns because they try it right on in the store they go home and they buy it again digitally.
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those omni-channel customers, particularly the omni-channel repeat customers, they're spending 50% more than what a digital-only customer or even if they're repeaters will spend that's the power of the model is these two distribution sides digital and brick and mortar complement each other and create a halo that creates an awesome distribution model and when you put that with our distribution model, you get something quite special. >> the future of retail is brick and mortar since going public, including today's big drop it is off the lows, it was down almost 20% it had this tremendous boom around the ipo and has given a lot back >> a short-lived boom. >> short live-ed, remember that's why they were very oversubscribed he chalked up the recent performance to maybe some retail traders getting in, some hedge funds potentially, speculation
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said that they're in it for the long term and he expects it to settle out over the next few quarters they have low brand awareness and a lot of room for growth and they're growing very quickly, but they have only one or two products that have really resonated with an older, wealthier crowd, and they have to prove that they can continue to expand that >> down 42% now since the ipo. we've got 36 minutes left in the session. we sold off quite significantly in the last 15 minutes or so we're down session lows 212 points on the dow, 0.6%. that's dragging down all of the major averages s&p's down half a percent. nasdaq is now down 1.3%. so a big intraday turnaround still to come we will discuss that intraday turnaround and markets more broadly with tech investor dan niles, and the names he still likes despite the recent selling as we head to break, check out some of today's top-search
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tickers on we're back in a couple
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coming up, rich bernstein says one part of the market may be in the biggest financial bubble of all time he's going to join us with that that morning in just a moment. as we head to break, bond yields have been moving higher, but yesterday's levels, 144 the short end higher, the long end lower. that is a flattening of the yield curve. we're seeing session lows and they continue to come down 2.11 on the dow we'll be right back.
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tonight, the supreme court hears a major abortion case. why roe v. wade's future is now in doubt
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welcome back nasdaq down steeply as 1.2% lower with, what, 28 minutes left of the session. even apple, which was performing like a safety trade yesterday, has been selling off in the last hour, briefly went negative moments ago. microsoft a little bit of a safe haven. but there aren't many genuine gainers as things stand. the nasdaq down 1.2% >> let's check on some more individual market movers the top performing stock on the s&p 500 today after announcing positive results from a mid-stage study of its experimental drug treating a genetic kidney disease that stock is rocketing higher up more than 8%. krispy kreme shares getting hit
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hard, citing concerns over rising inflation pressures jim cramer actually talking about krispy kreme and several other stocks to learn more about his stock picks and to sign up, head over to a club or just point your phone right there at the qr code on the screen, and it will take you right there. we've got 27 minutes left of trade. and we are down now 260 on the dow. let's get a cnbc news update with rahel solomon >> here is what's happening at this hour. the 15-year-old suspect in the michigan high school shooting is facing four counts of first-degree murder and life in prison arraignment is scheduled for later today after the local prosecutor announced that he is being charged as an adult with terrorism and first-degree murder there are 19 additional assault and gun counts still no indication of a motive. but the prosecutor says that the attack was planned >> there is a mountain of digital evidence, videotape, social media, all digital
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evidence possible, and we have reviewed it, and it absolutely -- we are confident that we can show it was premeditation. >> jacqueline avant was fatally shot in her home this morning. she was married to music legend clarence avant he was called the godfather of black music. police say that they are looking for a suspect or suspects. and the women's professional tennis tour says that it is suspending all tournaments in china. it's concerned about the welfare of peng shuai. she is the chinese grand-slam doubles champion who dropped from view after accusing a high party official of sexual assault. you're up to date. wolf, i'll send it back to you >> rahel, thanks so much we have 25 minutes left of the session and we are lower across the board for the major averages, down 240 points on the dow. over 1% for the nasdaq after the break, rich bernstein is sounding the bubble alarm, at
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least for some parts of the market he will join us to tell us which parts in particular, next. and coming up after the bell, we'll get earnings from crowdstrike, snowflake, and pvh corp we'll bring you the numbers as soon as they cross ♪ sales are down from last quarter, but we're hoping things will pick up by q3. yeah... uhhh... doug? [children laughing] sorry about that.'s uhh... you alright? [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around.
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we've taken a real turn in this final hour of trade check out the markets right now. the dow is down 250 points near
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session lows the nasdaq is down more than a percent, just off the lows there. s&p 500 down 0.4%. earlier i did have a chance to speak with the ark invest ceo as part of our cnbc pro talks she talked about whether she thinks the markets are in a bubble take a listen. >> we are not in a bubble. we are not in a bubble our strategies would be flying if we were i think we have not begun rewarding innovation for what's about to happen. the two best performing sectors this year, energy up roughly 50%. financial services up roughly 35%. two best performing sectors, we think those two sectors probably are most in harm's way energy is another one. anything associated with the traditional transportation
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sector, and that includes rails we think will be in harm's way >> but not everyone agrees with her conviction there joining us right now is richard bernstein. it's good to have you back something tells me, rich, that you do not agree with cathie wood that if we were in a bubble, her high-growth, highly valued stocks would be outperforming. >> um, well, i do, sara, your guess is correct i do disagree with kathie. i've known kathie for many, many, many years she's built herself a great business and i have all the respect for her in the world however, to say that we're not in a bubble i think is really not paying attention to what forms bubbles, what the history of bubbles and everything else there's a difference between mere speculation and a bubble. and people tend to use the two words interchangeably but there's a big difference speculation is actually a healthy part of the financial
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market to really have a functioning market, you need investors, you need hedgers, you need speculators, you need all those groups to make up a functioning market bubbles are different. bubbles go outside the financial markets, and they pervade society. to say that when we have day traders going wild and we have cryptocurrencies going wild, when hairdressers and taxi drivers are talking about cryptocurrencies, that we're not in a bubble, i have a very tough time understanding that. this is not a financial event anymore. this has gone outside the financial markets. >> so if we are in a bubble, as you say, hasn't it already kind of burst we've seen a lot of these high-growth stocks, 20, 50% off their recent highs we've seen a lot of the air come out of the spac market, for instance what else did you cite, crypto also off its highs what's next? >> everybody kind of thinks that when a bubble bursts, it bursts and it's, like, over, happens
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quickly and it's just over that's not the way bubbles actually deflate bubbles deflate over a number of years. so let me give an example to support that comment if you had bought the tech bubble in 1999-2000, you had bought at four, five peaks before the bubble, so let's say you're buying at the end of 1999, it took you 14 years to break even it wasn't like all of a sudden everything fell apart. it took 14 years for you to go back and break even. something tells me that cathie wood is not investing, saying it's okay i'll break even in 14 years. so it's not like things just happen and fall apart and drama. it's more like water torture and just goes on for an extended period of time >> it's interesting you mentioned that the ark etf is down 6%. some of people think that's an important level. but, broadening out a little
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bit, if you're right and that sort of type of stock and crypto assets are in a bubble and due for a long pullback, will that drag all u.s. equities lower would you just avoid u.s. equities until we get through the worst of it? or there are some parts that you like >> so, i don't want to pick on cathie that's really very unfair. but i think that she alluded to this, that we've been saying that don't think of the market, think of the market as a seasaw right now. you have what i would consider to be bubble assets, she would consider to be growth assets on the other side you have everything else around the world. we're trying to be on the other side of that seesaw. there are so many opportunities that people are ignoring all around the world there was literally a world of opportunity out there, but nobody cares because they're so focused on this narrow universe of bubble assets
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>> so you like all the stocks that she thinks are facing pain, financial services, trade. >> exactly >> that's what makes the market. rich bernstein, thank you for joining us today interesting call and for more market-moving interviews and stock picks and to watch that full interview with cathie wood, she covered so many individual stocks head over to robinhood sees a big drop. much more when we take you inside the "market zone. you can always watch or listen to us live on the go with the cnbc app we have stabilized here a little bit on the market down 177 on the dow. we'll be right back.
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tonight, the supreme court hears a major abortion case. why roe v. wade's future is now in doubt plus, the michigan school
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the "market zone" is sponsored by e-trade trade commission-free today with no account minimums. welcome back we've got a great lineup coming your way in the second hour of the show today we'll get earnings results from crowdstrike, snowflake and pvh and why you shouldn't change your 2022 playbook we'll get reaction to the tech selloff and some ev picks from investor dan niles and jim cramer will join us with the ceo of global foundries, fresh off that company's earnings report since first going public but, first of all, with 12 minutes left in the trading day we're now in the closing bell "market zone." today we've got ally invest chief market's and money strategist lindsey bell with us. nasdaq's a little bit off its low but still down 1%.
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and, importantly, well, well off the highs of the session it was all looking so good this morning. >> yeah, squandered what seemed like a pretty good rebound rally. market oversold a little bit, the russell 2000 was outperforming. you actually have bond yields a little bit higher. that far kind of rolled over combination i do think of just a continued sensitivity to any sign that we're going to have this covid threat coming impinging on economic growth, and of course the yield curve flattening in the treasury market telling you that we're bracing for fed tightening in the context of maybe not that strong growth. all of that stuff has been mixed together with the tactical slippery stuff the cloudstocks, the sports betting stuff, all the hedge fund favorites in fintech, they're all getting blasted out. i thought it was largely done in november, that's happening below the surface. however, the s&p i talked about
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the 50-day average we bounced right off of there. it was just under 4540 a little while ago. it's touch and go. >> what about the vix, which is spiking? this is volatility >> another negative, which was yesterday we got a lower high in the vix even though the s&p made a new low. that's a positive divergence this is now basically obliterated that it says you have to reset. it is showing some concern that's good that you have people a little more worried. >> since march 2021. >> lindsey, is this down to the first omicron case or is it really following up on fed chair powell's comments yesterday? >> you know, i mean, i think because we were positive this morning and then after we heard about the first case here in the u.s., i think this is a reaction to that, which, honestly, i truly expected because the impact of omicron here in the u.s., on the global economy in general, is still
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uncertain. there's a lot of mixed messaging going around whether it be from various countries and governments to doctors and ceos of healthcare companies. there's a lot of confusion about the impact that this could have on economic and global growth. so, because of that, i think investors are on a little bit of an edge, but of course yesterday's powell's comments are adding to that because they took a more hawkish tone investors are trying to parse through all of this. we've got another fed meeting. we've got the jobs report this friday we have the cpi report before that fed meeting we've got some government deadlines of regarding the debt ceiling and funding. so there's a lot i think volatility's going to remain high for the next couple weeks >> robinhood's stock is down about 7% heading into the close. it's been a loser for the last few weeks following more than 30% since going public i did speak with ark invest cathie wood about why she is still buying robinhood despite this poor performance. >> it has the best user
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interface out there for retail investors. we think it has a shot at becoming one of the important digital wallets in the world there are only going to be a few. we see robinhood now moving into crypto strategy, which isn't even in our expectations and its investor base is primed for an easy way to access crypto, as it's already doing. we think it's going to go deeper into that strategy >> as she is with some of other losers that she has doubled down on she holds the conviction there on the disruption story. for robinhood she thinks it's all about the digital wallet she thinks they're going to be a major player >> it's interesting though because there was nothing really there to say what's the edge, what's the true innovative aspect of robinhood now that every other broker is in zero
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commission everybody offers the same stocks and options and coins. it's kind of a cooler app. stock is 70% off its high. today a lot more insider shares unlocked so you actually have a reason for today's decline, perhaps you basically have had people trying to dump it for a while it's underearning. i'm not sure i love their chances of being the leading kind of super app or big digital wallet but certainly it'll be fine as long as payment order flow stays intact it can remain a business it's just a real long way to justifying where the market cap based on earnings. >> spx 4537. >> it's right around that level. 4539, it's hovering in that area support, sent, september >> we'll keep an eye as we approach the close we're down where am 300 on the dow. lennar one of the bigger
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winners. >> goldman sachs upgraded lennar from neutral to buy, citing the role of larger volume-focused communities supporting double-digit revenue growth. and also lennar spinning off of some noncore assets like its single and multi-family rentals, and potentially a portion of its housing-related technology investments, so-called arm linex. goldman downgraded dr horton noting its ability to expand market share but saying the upside in the lock limited that downgrade to neutral from buy. back to you. >> thanks so much for that what's your take, lindsay, on the home builders? what's the outlook at the moment for them >> i think if you look at the home builders, whether you're looking at lennar or dr horton or the etf, i think you've seen
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they've been winners this year, and especially in the last month despite the volatility that you've seen in the s&p 500 and that's because home builder confidence remains very high despite supply chain concerns. i think what we're seeing within the home industry is that we are in a secular trend upward where we're seeing millennials coming of age looking to buy their homes, the pandemic really expedited that and even though prices are higher and interest rates are probably going higher, i think that the home builders still could potentially have room to run from here, just given those cyclical trends. >> airline stocks just about the worst performing s&p lower on that news that omicron variant has been detected in the u.s., phil lebeau with more. phil >> sara, most of the airline stocks down 3 to 7% today. and if you take a look at shares of united now at a 52-week low earlier today we caught up with ceo scott kirby talking with him
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about sustainable aviation fuel and about what he thinks the impact from omicron will be. he says, yeah, there's going to be an impact, but it's too early to tell. >> omicron is almost certainly, it's too early to really tell but it's going to certainly have a near-term impact on bookings bookings are going to be lower than they otherwise would've been the next variant will be four steps forward and one back we're much better at dealing with this as a society >> as you take a look at shares of united over the last three months, keep in mind it's been hit pretty hard as omicron has become front and center because it has more exposure relative to its competitors when it comes to trans-atlantic flights is he sticking by his prediction that the summer of '22 will will be even greater in terms of business for united than 2019? and for now he says, yes, he is sticking by that guidance. guys, back to you. >> it looks pretty busy there at
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the airport behind you thank you, phil. this is a group that's, what, 34% off its highs? how much bad news is already baked in there related to this new variant? >> it's also 40% off of its 2020 high and i think a lot is really priced in here, a lot of bad news higher energy prices, international travel, a slow to return business travel environment. but you're hearing from the ceo of united today that he thinks 2022 summer, you're going to see travel return with a vengeance and if you test the consumer, that's where they want to spend their money is the year ahead is travel and entertainment i think these are stocks that could benefit from that consumer trend. these stocks have been beaten up i don't think they're going to come off these lows. some of them have cash flow issues that do need to be addressed. but they sure are beaten down where they're at right now
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>> mike, well, two and a half minutes left, but there's plenty to dissect >> obviously kind of released to the down side here, no real support there. it's becoming a lot more like a headlong liquidation, a lot of these stocks were on the precipice we cracked through that support at, i mentioned the 50-day average. so now we are below that october 4th we bottomed out at 4300 in the s&p. we're still working that off right now. but this is probably going to get people very nervous. this declining volume and advancing volume 80% to the upside this morning. it's been a complete reversal to that you want to take a look also at the bond market we broke key levels on the yield. so 30 in the 10-year look at the tlt. this is the long-term treasury etf. it's all part of the same thing. it's a little bit of a bid for cautious assets.
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it's a safety trade. i think you can argue we're overreacting to omicron the way the market underreacted to delta and alpha. but there's just no way to know that in advance. it's unclear if this is a market sniffing out more tremors to come or just finally a little bit of a crescendo of worry and fear and hedging going into this low right here that's pretty pronounced on the chart, pretty unusual for december 1st we'll see if it creates another downward spike, which is what you need you need to say that the fever has broken >> sharply higher today and sharply higher over the last week or so stocks moving in the opposite direction. the dow's nowdown 430 points o 1.2% s&p down 1.1%, well below that 50-day moving average close that mike was mentioning, which was at 4540. the nasdaq, the laggard of the three major averages down 1.8%
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and the russell, which it outperformed this morning, down 2.2% the worst performer of the four major averages utilities just holding onto slight gains in the s&p 500. the other ten sectors are all lower. as the bell goes lower by 1.3% on the s&p 500 ♪ >> big crowd for the nyse here investors are now shifting their attention to a trio of big earnings we're expecting results from snowflake. crowdstrike and pvh all coming up plus, dan niles will give us his take on the market volatility, which names he likes in the electric vehicle space in particular
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lindsay bell from ally invest is still with us. that was just an ugly close. i'm looking at some of the new 52-week lows disney, all three of the telecom companies are on there it really spans a number of industries >> that's kind of what you want to see >> when things are really bad. >> well, whatever it takes >> honestly, if you want to look for clues of people giving up on the idea that we're entitled to a year-end rally, maybe you're getting some today it's interesting because the absolute magnitude of the move today was not that dramatic. 1.2% we've been bouncing around here. but the fact that we started up over 1.5% higher that all got unwound so, you're looking for, you know, to buy into a crescendo of
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panic. you're starting to get a little bit in that direction. but we simply don't know if the bond market has it right that we're in for tighter policy along with slower growth or if we're a little bit early in saying that the new variant is not going to impact growth very much >> headline indices weren't down too much >> extra brutal. >> i don't think you're going to get another cnbc pro conversation >> she's going to buy more that's what she's going to say, they're on sell. >> below 100 let's get to gabriella santos' take on the market today interesting reading your notes, which were saying don't change your playbook for next year. stick to your guns but do days like today make you rethink that >> no, wilfred i think we really are sticking
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to our 2022 playbook just because they haven't changed over the past week so we still have a lot of information that we don't know about omicron, but we do still expect next year to gradually move on from the pandemic, give it how much we've adapted to it, as well as our new medical solutions. so gradually we should see a reacceleration in growth around the world, combined with slightly higher inflation, but a global reflation, it should be very good for earnings growth. with expectations actually a bit too low with room to move higher this should be a good year for the equity market, a much better year diversified by company style, sector, and region. it should be a much more challenging year for the bond market and we should continue to see this volatility in the curve as we debate inflation and we debate the fed's reaction from trade. so it's actually our expectation is a complete opposite of the
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market performance we're seeing today and we don't see reason to change that positioning as of yet. >> lindsey, in terms of what to buy on these pullbacks, what are you telling your clients that's attracted in the short term following those pullbacks? >> i think what you've seen over the last couple days is more of what you've seen all year long there's been rotation in and out of the cyclicals and values back into the growth. and we've seen a push and pull between those all year long. it really makes the case for having that diversified portfolio. but, as you think forward to the next year, i'm with gabrielle. i don't think that the playbook changes. i think this is more of a hiccup near term as far as growth is concerned. and we might get a little bit of a slowdown we're still assessing what the economic impact going to be from omicron. and we're accessing what the fed policy is going to be going forward. and i think that the re-opening
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is going to continue to benefit economic growth and corporate growth consumers are out there spending they are still optimistic about the future they are looking to get out and reopen and get back to work. so, i think that with cap x spending and rebuilding inventories, that's all a positive for the economic environment going forward. so we're sticking with some of those value and cyclically oriented centers into the new year, especially on any pullbacks like today >> gabrielle, what is your playbook when you say that you're also cyclical, what are you exposed to which sectors? >> so the first thing would be to be overweight equities versus bonds, expecting positive equity returns and unfortunately negative bond market returns to the opposite of today. in terms of adding technicality, absolutely time to be adding value style to complement the growth exposure. that far way you participate in days when growth is up as well as when value is up.
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it's also about adding a lot more regions beyond just the u.s. so also adding cyclical regions like europe and japan but less expensive regions like china as well. in terms of fixed income in that danger zone, it's really about still underweighting duration and focusing much more credit risk than interest rate risk that's really the playbook for 2022 if we look beyond just 2022, it's really about moving on from just beta, from just index investing to focus a lot more on the alpha because, otherwise, the return expectations we have are only 4.3%. so we need to be able to pull some different levers in terms of active management, and different tactical investments as well. >> mike, do you think this is more the news of the omicron variant or ongoing reaction to fed comments yesterday >> first of all, i think the
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average stocks started to have a little bit of trouble well before this. i think there was a lot of sort of positioning, pain that was being absorbed just because of those crowded stocks getting blasted out as we got into november and i think the context of "options ac omicron showing up late last week and throwing a wrench into this rotation toward cyclicals i think did unsettle things more i don't think the fed has done anything different in terms of its about, the fed has to be more attentive to inflation. of course, you have to kind of say that you have to be in that mode. >> and don't be surprised of the market when he is hawkish. >> and he's tried to err on the other side of things for a long time and say we can tolerate much higher inflation. but even when he was appointed, the knee-jerk reaction of the market was, okay, now he's going to be free to maybe attack in the other direction.
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so it's all together i just don't feel as if it's one cause. i don't think it's a reaction to today's news on the variant. if anything, we're seeing this trickle as opposed to sort of this wave of new infection and new restrictions most importantly, jp morgan says there's almost no appetite for no new real business restrictions those are the bets you want to make, either that's going to be the likely outcome or people are overreacting >> and there's also the message from the bond market, which is pushing back a bit against your view that 2022 is going to be strong and continue to see this yield curve flattening higher two-year yield on the prospect of higher interest rates or faster policy normalization and lower 10-year, it's now down to almost 140. what does that tell you? >> so we have seen quite a big flattening of the curve over the past week or so. and for next year we actually
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expect the opposite. we expect the steepening of the curve. i think the volatility continues at least for the next couple of weeks because the bond market is reacting to this information around omicron and what this means for hospitalizations and for economic restrictions. and it's also reacting to this discussion around fed policy, how quickly will taper end and also what does that mean about liftoff for the cycle ahead. so there's not a lot of information for the next two weeks. but eventually when all is said and done, we do expect global reflation to continue in the year ahead and when it comes to policy, we think that this is a fed that's a lot more reactive to inflation. liftoff will happen later. but when it does happen to the cycle of rate hikes will be more sustained. that argues for a steeper curve, especially over the last half of next year. >> snowflake shares soaring
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after hours and are up about 12.5% after the company reported better-than-expected revenue revenues are 334 million, beating estimates of 306 million. and the company's gap loss of 51 cents is not comparable to estimates. but guidance also better than anticipated. the company guiding to fourth quarter revenue guidance of a range of between 345 versus 350 million just for product revenue. so that's the product revenue guidance range analysts having been expecting total revenue of 339 million in the fourth quarter so that product revenue range above the guidance for the total revenue. so that is higher than anticipated. the company also saying that they saw momentum accelerate in the third quarter with that product revenue growing 110% year on year and continued international expansion during the quarter resulted in hereven. guys, back over to you
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>> thanks so much. up 13% in after hours. it was down 8.5% in the regular session. >> it's been a rough go. this is exactly the kind of high-growth, kind of high-expectation name that got way over value when it became public obviously better than expected it's still based on next year's revenue numbers. it's wild. and i'm not the one to judge whether in fact they do have the best mouse trap in this area of ai cloud services. i trust that they do, but the market's been trying to get its arms around exactly how highly it was valued back shortly after it became public >> we did see broader tech apple has done well this week. it's proven a bit safe haven-like mike santoli calls it a cash alternative. microsoft does better. what percentage of your portfolio should you have for days or weeks like this where the going gets rough
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>> yeah. well, i mean, the tech sector represents almost 30% of the s&p 500. so, if you're saying you want to have the same diversification of the s&p 500, that's a good starting point and then you can determine from there whether you want to add or subtract more likely to subtract from that. but i do think you need to have exposure these are high-quality names that have really good growth stories. and the valuations for these higher quality names haven't gotten that out of control and that's why i think you saw investors flock to the apples and the microsofts of the world this week. at the end of today's session you did see the nasdaq come under greater pressure than the s&p, which we had seen the opposite and investors had been looking to the nasdaq or the tech sector as a defensive play all year long. so that was an interesting move. but i do think it's really just reflective of people coming back to these maybe -- these more safe high quality, better cash flow longer-term growth stories.
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>> crowdstrike was a big drag on the nasdaq today it closed down 7%. >> right now an after-hours trading the stock is trending a little bit higher over 1%. and that's because revenues came in higher than anticipated they did grow revenues by 63% to $380 million that's higher than what the street was anticipating on earnings per share of 17 cents the street was expecting 10 cents a share we are also seeing subscription revenue increasing 67% compared to last time this year when we're talking about q3 net new customers, this number itself is at 1,607 that's actually decreased from the previous quarter where they added about 1,660 new customers.
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and then you are seeing total revenue for the entire fiscal 2022 still declining from last year fiscal 2021 when revenue grew 74% revenues up 63%. it's slowly starting to decline these past three quarters, but overall you're seeing top and bottom-line beat for crowdstrike, the share price right now up 3%. >> market likes it up. up almost 4% now snowflake up about 10.7% we want to get your best trade idea what is it at the moment >> i'm looking at salesforce i personally own it and i'm not giving any advice, but i think it has been so beaten down over the last several sessions, it makes it look really interesting at this price. it had a rough start to the year but starting mid-year it was up 30% going into november. we've seen a 17% pullback. you saw the street get comfortable with the operational efficiencies that they were looking for with the slack and
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other acquisitions and the growth trajectory. the street really got attached to that in earnings last night disappointed from an outlook perspective. as the company, in my opinion, might be a little bit conservative given the strong dollar there the operating margin guidance, though, was still very good. i think this is one of those stocks that got cut off in the rotation out of high-priced software companies i think there could be a little more opportunity potentially in this stock versus some of those other names because of this recent selloff so, it's caught my eye >> lindsey, thanks so much we appreciate the candor and our thanks also to gabriella santos for joining us today. we are just getting started on this second hour of "closing bell." up next, investor dan niles on the market volatility and the names he likes on these pullbacks. plus, dara khoa first on cn interview with the ceo of global
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december kicking off with more volatility. the u.s. confirmed its first case of the omicron covid variant in california. let's bring in founder and portfolio manager dan niles. great to see you thanks so much for joining us. >> my pleasure, wilfred. >> what do you think of the latest little bout of volatility are you concerned that there's more selling to come in the short term >> yeah, i mean, we've been pretty consistent all year that our feeling was the market was up as much as it was because of stimulus when that stimulus had to get removed with the market cap for the entire stock market divided at gdp sitting at nine times, which is an all-time record. the peak of the tech bubble was 1.4. that valuations would come down pretty hard, especially as the fed was forced kicking and
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screaming i think is the phrase i used two weeks ago when asked this question to raise rates next year. so, i firmly believe the s&p's down next year as valuations come in, and growth expectations get tailed back. >> in terms of how you're positioned, we know you also always have some long positions, some short positions and you can hedge that way but what about your cash position overall is that elevated compared to normal at the moment >> absolutely. my favorite investment idea right now is cash. because in this environment if you look at the market, a lot of the value stocks have gotten absolutely killed. the russell 2000 is down 12% from its highs in, i think it was november 8th so, underneath thesurface, people are focused on apple and that's great but underneath the surface there's a lot of damage being done, and people are just continuing to crowd into some of the biggest names. but there's a lot of data points
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coming out even over the holidays that demand for some of the biggest names may not be so good there have been several companies that have come out and said e-commerce sales are pretty flattish, which would be the first time in history. so, there's a lot more evolving, if you will, of the narrative that still has to happen as some of the pandemic beneficiaries continue to slow down and grow but, at the same time, a lot of the value stocks, there's just no bid for them because going into year end, everybody's either window dressing or tax loss selling so they're going down even harder that's why cash right now is literally my favorite position to be in and we have some in the fund for that very reason >> what about tech i know you always like to go there, but with your concerns about valuations, is there anything reasonable in high-growth tech >> yeah. i mean, our view is that if you look at a facebook or a google, they're terrific names where we
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can get growth at a reasonable price. this year has been all about growth at any price. if they're not making any revenues but they're going to be huge a decade now, then bid it up to a billion dollar valuation. i think as you think about 2022 as rates go higher, google trades at, you know, roughly two to three points higher than the s&p multiple of 20 times facebook trades at an s&p multiple of 20 times both of those companies -- revenues in the high teens which it should be two to three x faster than the overall s&p 500. the names you want to be scared about are the ones that have no earnings and are valued off of revenues because you can't value them off of earnings those are the stocks that are going to have huge troubles as rates continue to rachet up because those are the long-duration names. for facebook and google and then short basket of the other names against it to try to hedge that. but right now it's quite
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honestly, it's a difficult market to be in given the volatility that you're seeing. >> so, of that basket of other names, it sounds like you're alluding to some of the likes of lucid and some of these other evs that did cross that hundred-billion-dollar market cap. >> we're short rivian and lucid. they're trading at about 35 times revenues tesla is trading at about 16 times or 40% revenue growth. we have matched against it if you look at some satisfy chinese ev plays, you can buy them at six times revenue for 75% revenue growth we also own some gm, which had some positive news out today on profits. and you can buy both gm and ford at 0.5 times revenues for 16% forecasted growth. to think that rivian and lucid
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are going to wind up with no manufacturing problems are crazy given what tesla had to do to get there. and everything we're hearing about supply chain issues and semiconductor shortages. we feel pretty good about it, and to be very clear, we trade rivian and lucid every day because you've got 10% moves in every direction every day to try to balance the risk. but that's kind of i think a longer-term way that we like to be positioned, whether it's in those names or software names against facebook and google on the long side. that's how we're trying to balance the portfolio. >> i guess the biggest risk to your positioning, dan, is whether growth disappoints and weakens, and with that inflation comes down before even the fed can make its move on interest rates. what happens to some of these cyclical exposures that you have and to some of your picks? >> well, the thing you got to ask yourself, sara, is this.
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we had the omicron variant come out and people thought jerome powell's going to be even more dovish because you have another mutation of the dovish instead he comes out less than a month and says we're going to have to taper sooner and we got to get rid of the word transitory that should tell you with inflation at a 30-year high and with some of the underlying trends that are inflationary, all the people are saying we've got all these deflationary trends we're doing on-shore manufacturing, that's inflationary because people are worried about china and russia and relationships with china you are having less working-age population of people so that's inflationary as well and then you have wages going up you've got 2 million more job openings than unemployed so, all of those things are really bad for stock market multiples. that's what you saw in the 1970s. and i think that'sthe problem you're going to run into
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>> dan niles, thanks for joining us, as always, with your take. >> thanks, sara. up next, bridgewater's co-chief investment officer for sustainability on how investors should be putting money to work with so much uncertainty plus, a big investor is warning inflation will stick with us for the next decade. coming up, find out how he's positioninhig s portfolio to fight those fears.
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december 9th for the first time, investing club members can talk to cramer live. >> that's right. i'll answer questions from club members as i reveal my game plan for 2022 it's exclusive access for my best ideas for the new year. you'll know the moves i'm making before i make them scan this qr code and become a member of the cnbc investing club today >> cnbc investing club, jim cramer's game plan for 2022,
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thursday december 9th, 12:30 eastern. did seasonal openings bring workers off the sidelines? how are employees reckoning with the great resignation? november jobs numbers and reaction friday 8:30 a.m. eastern. watch "squawk box" any time on demand retail reporting pvh earnings just out. courtney reagan with the numbers. >> a mixed picture for the top and bottom line. $2 $2.76 adjusted the street was looking for $2.08. the street was looking for 2.4, but the company points at a 4% drag because of delayed shipments. the company did demand margins nicely 300 basis points over prepandemic levels the quarter was driven by international. the ceo says holiday sales are off to a strong start. the company raising the previous end of its revenue guidance and also raising its full-year earnings guidance above analyst
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expectations right now shares are only slightly lower in the after hours. back over to you >> courtney, thank you just looking at the xrt, which is the retail etf broadly speaking, another more than 3% decline, also caught up in some of these concerns around the omicron variant, that might be doing to our behavior. we've seen consumer confidence take a dip actually a decade low. and yet consumer spending seems to have held up relatively low i think thanksgiving sales were disappointing on the surface, but overall it's a pretty healthy consumer environment there's some questions about what comes next. >> the fuel is there i don't think that you have these kind of coordinated waves of trading yields lower, people lower their expectations for the near-term economic momentum. you have the defensive stuff working better that catches a lot of the retail stuff up into it so, consumer discretionary on equal-weighted basis was up.
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same story with small caps they gave it all back. so clearly we needed a little more of a purge before we find any traction here. >> reminder today that big day of selling nasdaq was down 1.8% dow and s&p both down about 1.25%. one of the areas that got hit hard was fintech paypal was down. we have some breaking news on square kate rooney's got it for us. >> square is changing its name to block this goes into effect december 10th the company saying this new name, quote, acknowledges the company's growth and creates room for more growth down the road ceo jack dorsey saying in a statement that we built this square brand for our seller business, which is where it belongs. he says block is a new name, but our purpose of economic empowerment remains the same this block name really reflecting more of an umbrella company. it really has moved well beyond that original card reader
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business they've got cash app making up more than half of revenue. and it comes as jack dorsey stepped down from his other big job at twitter more focus on square and bitcoin, and crypto of course is a part of it square crypto, which is one of the initiatives within square right now. it's all about advancing bitcoin and moving forward with the cryptocurrency that's now going to become spiral so there is another rebrand within this big announcement hardly the only tech renaming that we've seen lately, of course, facebook is calling itself meta. you had alphabet and google. and meta really focusing on the metaverse here square seems to be giving a nod to block chain and some of the new focus on cryptocurrencies. will still trade under the ticker symbol sq >> kate rooney, thanks so much mike, amazingly, giving this stock a little bit of a boost, not much, but it's moving. >> it sold off hard today.
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>> it didn't move at all >> it's been a benign headline block, stripe, square, plaid, so the payments companies want to be geometric in some fashion, syllable i don't know why you buy the stock. >> it may be a sign that dorsey's back at the helm and making moves >> and intently focused on crypto really. >> no question about it. shares of semiconductor contract manufacture global foundries have been on a tear since going public back in late october. joining us now global foundry ceo along with "mad money's" jim cramer jim, welcome, take it away >> thank you so much, sara and, by the way, great interview with cathie wood earlier today tom, this is a really important issue to talk about. i think that you have the best single grip on the so-called chip shortage in this country and the world. what are you doing to solve it
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>> first, jim, thanks for having me on the show today it's great to see you. i think df's doing its part. our business is not limited at all by demand. it's how fast we can put capacity on. we're committed to spending over $6.5 billion of capital deployment over the 2021 and 2022 that essentially by the end of 2023 get us at a run rate that's 1.6 times more output than when we ended 2020. so we're making the investments, we're doing it in partnerships with our customers who have long-term agreements that are counting on us to go create this capacity it just takes time in some cases we're new buildings. in our dresden facility in germany we're filling out the floor space we already have. every day we're making as much product as our facility can allow us to put out. >> one of the things i think is
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great about your release and your talk is you distinguish between these high-performance chips and what we call the full-feature chips and they're used in the auto business that's where the real shortage is you announced an incredible deal, a long-term deal with ford recently without these long-term deals i think it's just a bad business but, with them, how well is that going to work? >> look, i think the whole concept with ford is the meta point here is is the weirdness of society of how important semiconductors are, how pervasive they are in our lives. we educate our children, we run our businesses, our very lives are touched every day by these semiconductors and what happens it's not what we do every day, it's when we don't make enough of these chips and how important silicon is to the world. probably more so to the auto industry so, with that as a backdrop, the real thing about the ford/gf partnership is as companies rely more and more on semiconductors to bring innovative products to the that,place, they want a
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closer relationship within their supply chain the companies that actually manufacture the chips. so our partnership with ford talks about how do we go and help them in the near term, create more capacity for them. how do we align our technology road map to give them the kind of features they'll want to see and have in those feature-rich chips you described in the future and the last part is how do they go and create a long-term partnership with gf to make sure they have certainty of their supply going forward >> a lot of people say why doesn't tom put up a couple buildings and just say, okay, here we go, then that happens in three to six months. why doesn't that happen? you and i both know. i'm just being a little devil's advocate you know that people say why doesn't he just go to new york, put up 5,000, this is over >> it's all about lead time. this is very sophisticated and complex stuff. this is not a very simple
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factory. the technology, the range of tools that we actually put in place from both the equipment manufacturers and how we run those tools, highly specialize, highly technical that's a reason why there aren't very many companies left in the world who actually manufacture so for us it's all about lead time and the time it takes to create from the minute you say i want to make more capacity to the time you could actually get that capacity. at best, it's nine months. typically it's 12 months so we're moving as fast as we can. we made decisions very quickly that we needed to add capacity but given the complexity of this technology of semiconductors in general and in particular the type of sophisticated chips that gf makes, it just takes time to get that capacity online >> and where's u.s. congress right now in trying to help your industry >> i think the big step that happened in 2021 was the change in the industrial policy that the u.s. government recognized if they didn't have industrial policy that was consistent in the global markets, as in other
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governments around the world, which means they want to be partnerships in investing capacity that they will continue to lose their manufacturing here in the country the chips bill was passed which was about changing industrial policy to support u.s. manufacturing for semiconductors and now the bill that's working its way through congress is the one that actually funds that i was a lot more optimistic that by the end of this year that would have been done but congress is dealing now with the debt ceiling, getting the build back better bill funded. and we're in short days of the year we're down to the last month i think what's going to happen, those things need to get finished by the end of this year they will. and some time in the first quarter, this bill will get funded it's a bipartisan supported issue. everybody recognizes we need some more semiconductor manufacturing in the u.s. and the only way that's going to happen is if we have partnership investments like we see in the rest of the world. >> that's the most optimistic i
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heard you which makes me feel good so, tom, congratulations on what was a great quarter, obscure by today's trading. great to see you see you again in person. okay, wolf, back to you. >> jim, our thanks to tom caulfield as well. can we just check in with your take on that the russell was up more than 2% and outperforming and then closed down more than 2% and underperformed the rest of the market. pretty brutal. >> i've been saying this market is going to have two shoes the first shoe is when we discover that this illness, this strain is going worldwide. okay, we got that because we went to several different countries. the second would be when we found it here, and it doesn't matter how you and i and sara we all know that it was going to happen we all knew. michael knew but it didn't matter because the
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public at home says, oh, my, it's on our shores, let's sell everything interestingly enough, some of the companies like five below and snowflake are actually going up but don't get banged down as people just panic. i think this second shoe is the buyable shoe the first shoe i said don't buy. this second shoe, it is buyable. i think the market got interesting again at the close >> buyable from tomorrow morning? >> yeah, i think so. hey, listen, when something happens that we all know and then it happens, we all know the market's going to go down, and then the actual market goes down, that's important when we don't expect it to go down, that's a different story but all of us knew, hey, second shoe there's going to be panic we got the second shoe, we got panic. now it gets interesting. i saw it on "halftime" today, now it's getting interesting, let's get that shopping list out now. >> jim, thanks so much, as always >> thank you for letting me
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play >> what is on the shopping list we'll find out on "mad" at 6:00 p.m. or get it in your inbox. join jim's investing club, go to or point your phone at the qr code at the screen right now we've got some news on disney. julia boorstin's got it for us >> that's right, wolf. disney announcing that the new chairman of the board will be independently director susan arnold she'll be succeeding bob iger when he leaves the company at the end of this year now, she is she was an operating executive at carlisle, and before that at procter & gamble. this move shows continuity as iger makes his transition out. bob chapek has been ceo for a while now. >> longtime p&g exec she was there for, like, 30 years. ran the beauty business and a number of other global business units. >> we will follow up on that later as well.
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up next, bridgewater's choe chief investment officer for sustainability on whether she thinks there's more volatility, ahead. this is your home. this is your family room slash gym. the guest bedroom slash music studio. the daybed slash dog bed. the living room slash yoga shanti slash regional office slash classroom. and this is the basement slash panic room. maybe what your family needs is a vacation home slash vacation home. find yours on the vrbo app. ♪♪ ♪ ♪ remember when no dream was too big? ♪ ♪ and you could fearlessly face the unknown.
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welcome back it's time for a cnbc news update with shepard smith hi, shep >> hi, wolf. from "the news" on cnbc here's what's happening now in his first interview since the shooting death of the cinematographer halyna hutchins, alec baldwin tells abc news he didn't pull the trigger. >> it wasn't in the script for the trigger to be pulled >> i didn't pull the trigger >> so you never pulled the trigger? >> no. i would never point a gun at anyone and pull the trigger. >> baldwin says he has no idea how a bale bullet got into the gun. the full interview scheduled to air on nbc tomorrow. a move it hasn't made in more than 25 years the collective bargaining agreement set to expire tonight if there was no deal by then owners are expected to freeze all player activity. major issues, the league's economic structure, how players
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are paid, and the competitive balance among teams. and the list of the world's most expensive cities is out according to the economist tel aviv took the top spot this year up from fifth last year. it puts paris down to number 2 singapore, zurich, and hong kong round out the top 5. new york, sixth. los angeles, ninth tonight, the supreme court hears arguments on a case that could overturn roe v. wade pete williams breaks down the landmark challenge on "the news" right after jim cramer 7:00 even cnbc sara, back to you. stocks selling off hard today into the close, losing gains earlier in the session after the u.s. confirmed it has found its first case of the omicron covid variant. s&p 500 now nearly 5% below its all-time high. joining us now is bridgewater's karen karniol-tambour. welcome back, karen. we know you've been sounding the alarm on inflation, persistently higher inflation
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but you guys have liked stocks is anything changing in the portfolio now that we have this new variant and that we have a much more hawkish fed talking about speeding up the pace of taper? >> not materially. the way i see it is you have an extraordinarily strong economy you have the strongest inflationary pressures that you've seen in decades, and they're broad and they're pervasive. you have a fed that really hasn't been tightening very aggressively relative to what the economy needs. and that's pretty bullish for stocks i wouldn't say stocks are as attractive as they were earlier in the cycle, but you still want to have a fed tightening aggressively into that bond markets are pricing it as if they didn't even hear powell say that he finally acknowledges that with this kind of inflationary pressures the fed will have to act eventually. so that makes bonds extremely unattractive, stocks very attractive then when you look at what's happening with omicron you basically say, look, none of us know, none of us know, there's a lot of unknowns here
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but a lot would have to be true to change the current trajectory of how the world, the paradigm the world has of dealing with the virus. so far, every single wave has been scary but has had successively fewer and fewer and fewer effects on the economy because we've learned so much about how you can have more narrow restrictions, obviously you have treatments, we have vaccines so absolutely omicron could. but omicron doesn't need to show up in the u.s., it has to fully replace delta as kind of the common strain, and it has to have much higher morbidity, mortality than what delta has had in the context of our current treatments or vaccine. could it happen? yes. would i be aggressively buying bonds that don't price into that no >> doesn't what you just said imply that the market still has to price in thetightening which, i guess, inevitable at some point in the next year. and it's still yet to be priced into stocks based on what bonds are doing. >> oh, absolutely.
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but you'd really think the right trade there was to be short bonds. basically the way it usually looks is that first the federal reserve tightens and the bonds start showing it you really have to tighten kind of more than the economy can take to materially impact stocks if you just get a little bit of higher interest rates, if the fed is not tightening enough to materially show the economy, shorting stocks might not be the right trades but bonds, it's transitory, it's going away, don't worry about it, and to me when i hear what powell said yesterday, that's a real turning point of recognizing that's not the case. >> karen karniol-tambour, thank you. sorry we have to keep it short today. a lot going on this hour we'll have you back on soon hopefully. >> thanks. up next, mike santoli will have a look at why credit card processing stocks have been hit hard recently despite a surge in consumer sndg.pein we're back in a couple
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we have a news alert on wework kristina partsinevelos has more. >> after-hours trading, because we were convinced it made a mistake in the last financial report, which literally just came out november 15th, two weeks ago. those financial statements should be restated to report all public shares as temporary equity because of that classification error, management said there was, quote, material weakness in
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internal control over financial reporting. that means wework will have to restate the financial statements as of december 341st keep in mind wework just went public on october 21st of this year the shares are down almost 5%. >> they were down a bit more than that. thank you. up next, credit card stocks falling. they've been on a downward slides for a while we take a look, next
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let's send it over to mike >> it continues to be a pretty good trend this is the chase user card trackinger jpmorgan chase provides this. so this is over two years. that is very strong growth so backdrop pretty favorable look at what's happened to the valuations visa and moster card obviously it's not all about spending, but it's important to how they make their money. the valuations have crashed. this is a part of that group you've been talking about of these crowded hedge fund
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favorite names somebody is selling them, so arguably they're at their slimmest premium right here to the overall market as they've been 2309 better part of five years. is this an opportunity to perhaps own these stocks that have been chronically expensive, or is perhaps the market saying they're losing a befit of their advantage? >> paypal and block haven't been doing that well, either. >> absolutely. >> we had another rough day and a really jarring reversal. it was part of the news reaction that omicron had reached the united states leading it to sell it's just bad news, even if we knew to expect it. >> i think if you wanted to see that kind of emotional panicky, just get me out activity, we saw hints of it. it does seem as if, as opposed
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to friday or monday rally, which was really halfhearted, you did get evidence of fear entering the market. >> down 1.2% on the s&p, brutal end of day sell-off. thanks for watching. "fast money" starts right north. tonight's trader lineup, and tonight on fast we are all over the late-day sell-off. stocks plunging into the close what is next for your money? we're breaking it down plus shares of lyft hiding skids as covid fear says return. we'll speak to john zimmer about the real risk of ohm chrome variants and we're dealing into the world of cathie woods. we start off with the major market reversally, sending


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