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tv   Closing Bell  CNBC  December 17, 2021 3:00pm-5:00pm EST

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it's great advice for the end of the year, and we just all got to keep it together and get to the end of the year. >> yeah. the crypto thing is really gnarly, baa it's going to be an interesting thing going forward. at any rate, great to have you with us. fantastic. >> thank you for watching "power lunch" have a great weekend get out there and get those presents shopped and wrapped "closing bell" right now welcome to "closing bell". v is for volatility and that is the word to describe today's market action. and the action we've seen all of this week. this hour the dow and s&p sharply in the red the nasdaq holding on to the green. >> i'mle leslie picker in for sa eisen. the fed and am omicron variant, sparking shut down fears again that's as fed officials are reiterating the hawkish pivot jay powell announced earlier
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this week, and it's the financials under pressure today with goldman sachs the biggest loser in the dow coming up, tony dwyer and how he thinks the market will perform. and concerns about the omicron variant weighing on vaccine sentiment. you know it's been a volatile week. when we need to bring mike santoli in on his day off, that's a sign. mike, we've missed you as always it's great to see you face on that picture and to hear from you. what has been your take from afar this past week? i mean, we've had a pretty volatile -- we got a nice bounce in the middle of it. it seemed like we took the fed's pivot in our stride at least temporarily. >> for sure. i mean, i think there's some value, unintended value in actually unplugging a little bit and looking at what has changed and what hasn't changed over the course of a week or several
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weeks. in terms of overall market levels, believe it or not, not that much changed. the s&p is where it was at the end of november. it's where we got to six weeks ago. the surface, the market has been punishing anybody who is comfortable in their positions, and so i feel as if there's been a tremendous amount of internal damage the market getting kind of sold out. and incrementally investors almost giving up the idea of just staying in for the sake of the year-end rally notion. i think that's all net positive that people have muted expectations and then when it came to the fed, i think that's the right read the market initially said well, this is just the fed essentially coming in to line with what the bond market had been pricing in for the outlook already. not that much more hawkish, but also not so much of a gab in their outlook versus the outlook that it created the ingredients for lots of future nasty surprises in terms of them moving i think it makes sense where we've been, but to me if
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dominant take away is the positioning has become light it's unusual at year-end for people to say i'm going to lock it in. i'm going to assume we're not going to have any kind of a rally into year-end. and sentiment i think is cautious, and for good reasons there's a lot that can go the wrong way. there's a pretty wide range of paths we can go in terms of fed, macro and risk taking in the new year >> people are concerned about the margin of error and the risk on monetary policy side. you think the fear of tightening stems into tightening into a slowdown or tightening too late given what their seeing with regard to inflation? >> well, the fact that both are plausible probably tells you a lot about the back and forth action that we've seen so to me, it's more about tightening into a slowdown that is the real overcharjing worry point at this point. because the fed has said look, we're going to be vigilant about inflation. i think it gives people minor flash backs to 2015 when the fed tried to squeeze in the first
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rate hike in december of that year, and then global markets were actually really upset about -- already bring that point, credit markets were kind of throwing their own tantrum. i think the difference now is overall growth levels demand levels are so much stronger. credit markets are in decent shape. it has to be in the category of things that might make sense to worry about into the new year. >> mike, to a point that a lot of things under the surface have corrected 20 % or more during the course of this year, i guess the big area of the market that hasn't done is the megacap tech which is disproportionately important. now, they're down this week. apple is down 4 % year to date microsoft is down 5% that's another risk that those names see prolonged selling. they've stabilized as the week comes to an end, but it's a question mark. >> i would say that is a risk. it's a risk to the indexes it's not clear to me that it's a risk to kind of the overall
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situation of the market or the average holding out there. because it would represent, prance, just a catchdown move by those big kind of holdouts to the rest of the markets. so yeah, there's no doubt about it that's the kind of the source of funds this week. i think the market is kind of turning from what you consider kind of aggressive growth equality like faang into true defensive quality and underowned stocks like telecom and health care who knows how long that lasts? to me it shows this is a whippy market low conviction on both sides, and people are -- either the market is kind of afflicting the comfortable and comforting the afflicted as the saying goes at least into this expiration date today. maybe things calm down into next week >> mike, thank you so much for taking time away from your vacation to study this and to share your insights with us. we really appreciate it. for more on today's market action, let's bring in nancy
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davis and paul britain thank you both for joining us today. w v is for cvolatility nancy, you think we're in store for more of this why and how long >> the rates market is freaking out. i don't think the equity market has taken notice yet we've had the biggest forward flattening in the yield curve since the financial crisis the market has priced in a tremendous amount of hikes, even more hikes are being pulled forward into 2022. especially with midterms so i think there's a lot more volatility in store and investors should buckle up and get ready for it >> paul, do you think this volatility stems more to the up side or downside i ask because marco of jpmorgan wrote a note today the selloff narrative has to do with fed and omicron. in reality, the selling is coming from hedge funds like yourself derisking and shorting
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from both the equity and macro hedge fund strategies. he says this sets the market up for a short squeeze and a cyclical rally into year-end do you agree with that >> i have a lot of respect for marco. and i can make a strong case either way i can make a case to be able to look at the amount of liquidity that's still in the system and that's ultimately how i think the risk equities credit, et cetera, are viewing it. to be able to look at the amount of record buybacks, corporate baybacks, let's not forget we still have the fed buying assets y. even though they're tapering at a fast rate, they're still purchasing on one hand you can make a strong case that risk remains support all bee it artificially. on the other hand, i agree with nancy, to say i think next year is all about rates and it's really to be able to historically look at what rates did to risk assets historically. and that's always a head wind
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for risk assets. but i think the risk asset market is simply saying the party is over. there's still a lot of liquidity in the system. and we're going to wait until the day of reckoning comes when we do have these hikes that's not any time soon, at least for q 1 or q2. >> but paul, will rates rise significantly at some point next year or even when the bond buying ends >> that's a great question if you look at -- we study options market pretty hard in the rate world, it's telling you that not only will we perhaps see three rate hikes next year, but there could be even more substantial hikes going into next year and i struggle to believe how that is going to be a supportive environment for risk assets. so from my standpoint, it's all about probabilities. it's all about looking at the amount of wealth that the typical investor has made this year which one could argue has
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been a win fall. it's been an outsized year, and i think it's time to just be able to look at ways to think about protecting that wealth that's been created this year. because if you were to rewind 12 months ago, i don't think there would be an awful lot of your commentators or your panelists who said the s&p is going to be up 25% you could make an argument that we've perhaps in the space of this 12 months, we've rolled two or three years worth of returns into one calendar year's market environment based upon the extraordinary fiscal monetary programs we've seen globally >> nancy, do you agree that's a bold statement. looking forward, that won't not necessarily be the case. >> the key is thinking about
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diversification. if you own stocks and bonds historically, you've been correlated and not correlated with each other, but you have to look at the type of bonds that you own. because so many hikes have been priced into the front end as paul said, over five hikes are priced in before the end of 2023 and a lot of investors have, if you own bonds that have corporate spread risk, if you own apple stock and apple bonds, or microsoft stock and microsoft bonds, and those sell off in equities, typically their credit spread will also widen i think investors really need to be diversified in government bonds as a way to help diversify equity holdings. >> i just want to ask one question to both of you. and i'll do nancy first. what should you buy whether it's a small or big part of your portfolio that will offer genuine diversification if we're in a world where both bonds and stocks are at risk of falling
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alongside each other what's the best place to put money, nancy >> well, leslie knows my answer. it's volatility. the big "v" how we started out this conversation. it's the one asset class that's been negatively correlated with risk assets. i think the one thing to keep in mind for investors is there are lots of different volatilities anything that has an options market has a volatility market because volatility goes into pricing options. so at quadratic, we're very favorable on owning interest rate volatility, because it's very, very low historically. >> paul? >> i would agree we are biassed we're in the volatility game, obviously. but for me, it's just simply -- it's not to say that we've all got to go to risk and derisk the impending doom that's upon us. it's simply saying that we're driving faster and faster down the highway, because that's what
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is required to be able to keep up with levels of inflation to be able to keep up with the returns of our constituents expecting of us. all i'm saying and suggesting is we need to put a seat belt on and ensure that we've got a seat belt it's not to say that we're on the road and on the path to impending doom it's just being able to take a look back and to be able to analyze the extraordinary wealth that's been created. not just this past 12 years but since this monetary policy came into affect post cfc, and the amount of wealth created it's what nancy says have you got enough diversification in your portfolio? is it worth investing some of the proceeds the portfolios have made this year into perhaps other areas that may not be as profitable as what you've seen in 2020 or 2021? but to be able to then say i'm going to take some profits off the table to ensure that i lock in some of this wealth that i've created over these past 12
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months >> yes that seat belt analogy is a good one. we appreciate it thank you both nancy and paul for joining us today. >> thank you so much when we come back, shares of rivian taking a nose dive after the first quarterly reports since going public and why analysts are remaining bullish despite it keep it right here you're watching "closing bell"
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whether to remain bullish or not. rbc, all out with positive commentary on the stock today. and phil has more. >> when we listened to the conference call, upbeat comments from analysts. this comes with growing pains. this is a brand new company. publicly traded. they're ramping up production. that's the issue they're running into issues when it comes to the supply chain and bringing up production and you see that with what they said about the fourth quarter. there are going to be a couple hundred vehicles shy of producing 1200 vehicles in the fourth quarter those are going to be pushed out into the next year nobody has said this is terrible to a certain extent, it's expected when you have a company that's basically bringing three vehicles to market at the same time they're increasing inventory in the short-term there is demand for rivian's vehicles they're in demand. at the end of september, they had 48,000 reservations for
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these vehicles where do they stand now? 71,000 so there is some building momentum out there for those two vehicles as you take a look at shares of rivian, keep in mind they also announced yesterday they're going to be building a plant east of atlanta. goes online in 2024. 400,000 vehicles is the capacity this is what we're going to see from these guys over the next couple years bringing more capacity online. it's not a straight linear shot. it's going to be a case where you're going to have reports like this from time to time. >> yeah. kind of a metaphor for the stock there. not a linear shot. perhaps volatility to be expected phil, thank you. with about 42 minutes before the bell, the dow is down 400 points the s&p lower by about.65% shares holding up today. underperforming this year is concerns over the company's corporate governance structure we'll talk to a top analyst calling for a shakeup at the board. as we head to break, check out
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some of the top search tickers rivian in the top spot followed by the ten-year yield, tesla, apple and the nasdaq let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.
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video game stocks holding up today but sinking over the year. activision down year to date joining me senior research analyst. doug, good to see you. they've had some problems overall in terms of management and governance is that why the stock is down or is it their fundamentals >> you can't really disentangle the two. it started in july when the california government brought a lawsuit against them for discrimination and harassment from the company initially the stock didn't react that month a few weeks later, it was apparent it would impact their pipeline, the games they planned to ship into 2022 would be
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delayed further out. and i think that sort of brought appearance of not having a great handle of what was going on inside the company it was a disappointment from annerings perspective. it's kind of been the whole thing as when one big disappointment for investors that's driven the stock down >> what would you like to see in terms of changes on the governance front >> yeah. so as you pointed out in the note today, activision chairman of the board has been on the board for over 30 years. they bought the company together out of bankruptcy. we think a lot of these problems are due to a lack of good governance and good oversight. we would prefer to see an independent director brought in as chairman to do a better job of essentially holding the ceo and management's feet to the fire on this and making sure that there's a more of a sense of urgency around this
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>> doug, do you know of any activist investors who are looking at this one and hoping for some change in terms of corporate governance would run a proxy slate and all that >> it's interesting. i've gotten a question a lot from clients i haven't heard of anybody look agent that i think this is a tricky one, because you know, even if you were to fix the governance problem, even if you were to replace bobby kodik, if you chose to do that, the risk of the blizzard asset which they emerged with 13 years ago has underperformed that entire time. and it needs to be fixed this isn't a company which just makes widgets where you just make it more efficient and you're more profitable these are people that i think have worked in a difficult environment, and they haven't been able to do their best creative work. they've had a lot of turnover in the employer ranks there it's going to take a lot of work to put that back together. there's no easy fix there which, you know, activists like to
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comment and do a few things and some of the earnings are higher. that isn't that situation. i don't know how attractive this would be to an activist investor >> the reason i ask is because an activist would be able to shake up the board thigh retically. the bylaws say they don't have a poison pill or similar takeover provision in place shareholder matters decided by majority rule. the board has said it is standing by bobby kodik. if you're looking for change at the top, i wonder where that comes from >> yeah. i mean, you could. right? the thing is for an activist, it's not enough to -- it's not enough -- sorry, my phone here -- it's not enough to say we're going to change the board, but that has to result in a higher stock price for you to get paid as an activist investor i think having better governance would be better for the company in the long run, but does it
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make a huge difference in the next 12 to 18 months again, fixing blizzard is going to take a while, and there's not going to be sort of like a quick fix here that means an immediate turn around in the stock price >> thank you for joining us. good to see you. >> absolutely. still to come, big problems may be coming for buy now pay later platforms. a consumer watchdog group is launching an invest into the sector we'll talk to a top analyst about what that means for the stocks and which to own. as we head to break, here's a check on bonds, the ten-year yield. around 1 .4 % today. we'll be right back. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture.
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let's get a check of individual market movers novavx, the stock surging after emergency use listing for the company's covid vaccine. that stock now up about 11%. and speak spooeking of health, shares of teledoc growing. the firm says it built a platform unrivalled in scope teladoc shares up about 12% right now. and oracle is getting close to finalizing a deal to buy cerner corp the deal could come as early as next week and could be valued at 30 billion that would be oracle's largest
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acquisition ever shares of the company about 7% cerner, up nearly 14% on that news we're down 0.7 % on the s&p with half an hour left to trade for the week time for an update the defense has rested at the trial over the death of daunte wright. kim potter gave emotional testimony and apologized for fatally shooting wright. closing arguments are set to begin monday a florida man has been sentenced to more than five years in prison for his involvement in the january 6th riot on capitol hill it's the longest sentence yet among the more than 150 defendants who have pled guilty to taking part in the siege. robert palmer of tampa, florida was charged with repeatedly assaulting multiple police officers outside the capitol palmer wept as he apologized to the court for his actions. the nfl has made it
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official three of the weekend's games being delayed off covid. the raiders/browns games moves to monday. the sea-hawks rams faceoff tuesday as will the eagles and washington football team and they're not the only pro sport delaying games the pro hockey league is benching games because of rising infections a total of 13 games are being postponed. it's disrupting everything it makes me exhausted just to talk about it. >> thank you very much we have 20 minutes left in the session. we are low for the s&p by 0.8% dow 0.1% over the course of the last 10 minutes, but we are well off th session lows the nasdaq about -- well, i was saying positive, but it's not gone just into the red straight ahead, we'll discuss the potential pain that
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zblanchts news alert on boeing phil has the details >> leslie, boeing has announced it is going to be suspending its move to have all employees be vaccinated or else potentially face ultimately losing their job. why the decision to suspend this requirement, well, 92 % of the employees right now either are vaccinated or have been awarded an accommodation. now a federal court has recently issued a ruling basically prohibiting the federal contractor vaccination law you have that along with some state laws
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boeing has decided that for now it is suspending the requirement that all employees be vaccinated and again, that news is just crossed in the last couple minutes. back to you. phil, thanks so much for that boeing stocks still up on the day. we are losing steam in the broader markets. the dow is down to 450 points or 1.3% we'll keep an eye on that as we do approach the close with 23 minutes left still well off the session lows. slipping a little bit in the last 15 minutes. a firm is on track for a weekly loss after the consumer protection bureau opened a probe into buy now pay later saying it was concerned about abilities to quickly accumulate debt through installment payment plans. let's bring in the senior equity analyst. chris, thank you for joining us. i'm interested by this we all know the punishment fees within bnpl are lower than some
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short-payday loans or credit cards and alternative options that people might have used. and that's a good thing for the bnpl industry. at the same time, encouraging people to rack up debts even if the punishment when you can't play them are lower is never a good thing is there a factor that's going to be investigated that maybe they've just been incouraging the process of taking on debt a little too much? >> yeah. it's great points. and i think that -- first, thanks for having me i appreciate you having me on. it is a, i think a logical next step the success of buy now pay later in australia and sweden and now the u.s. has been incredible in terms of the adoption of consumers. consumers love it. and you've seen regulatory actions there as well where they let it grow unfettered for a while and started to have the same concerns. are we monitoring this are we going to get into trouble. the key take aways from
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australia and sweden is it has been a relatively positive experience regulators have cracked down to find a problem and the key thing i like to focus people on on this is these products are generally like you said, better for consumers especially the short-term sort of pay for product where it's carrying the load and not the consumer it's a different equation for consumers than the credit card model we've all grown up being used to and being used to the fees the fees on buy now pay later are smaller. >> if the stocks have sold off because of this particular headline there's been other factors in the last week. is that a buying opportunity do you think the cfpb are regulate or punish the companies severely >> no. i don't think punishment is on the horizon. regulation certainly is. and i think the industry actually welcomes regulation levels the playing field making more standard practices in terms of what you're
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disclosing and reporting to the credit bureaus i think there's some ways of skirting the traditional banking laws you want to make sure consumers are aware of the overall load they have. this one issue, i think i'm worried about in the u.s. case versus australia and sweden is we -- there's so many players here one may not see the fact there are three other accounts i think consumers may fall behind quick for they don't see a consolidated view. i think there's necessary changes, but i don't think there's punishment the products for most part are good for consumers and a step up from the traditional products we're used to? >> that's interesting with regard to the number of players in the buy now pay later atmosphere in the u.s. do you expect there to be consolidation due to market forces >> absolutely. i think you've sort of seen that a little bit with square taking out after pay and creating a
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behemoth there yesterday i thought i saw there was potential speculation in the australian market, zip, quad pay in the united states, they changed their name to zip, might combine. it's to scale benefits and having the unified view of the merchant the merchant brings a lot of value. they know their consumers and are driving a sale they get increased conversion at the point of sale. scale makes sense. i think we'll see consolidation. >> one quick different question on this. do you think all of these companies are as good at managing credit risk as they seem to say they are >> that's a great question i think we'll have to find out that's one thing i've been worried about is just that we've been in the most benign credit environment eve ever seen. through the pandemic and the stimulus and the right sizing of consumer balance sheets, what does credit look like here especially with a lot more
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offers to do buy now pay later there's more popularity. i think there will be differentiation. i've been a big fan of after pay. their model and repeat customers and losses have been incredibly well-controlled. affirm also gets a lot of credit considering they do more lending than a true short-term, and their credit has been outstanding as well. and it can only weaken from here i think that's what the market is concerned about >> the macro environment has been favorable for those types of companies it will be interesting to see what 2022 holds for them thank you, chris >> my pleasure coming up, gm gears up to start delivering the new electric hummer. those stories and more when we take you iidthmaetonnse e rk ze.
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welcome back we've got a great lineup coming your way in the second hour of "closing bell" tony dwyre will tell us what he thinks about the nasdaq at these levels and we'll dig into goldman's oil call and an economist who says we could see a global growth slowdown in the first half of next year. and covid fears have been weighing on the market of late a vaccine expert will join us to explain the latest omicron surge and what it means for the markets. first, with 13 minutes left in the trading day, we're in the closing bell market. we have stephanie and dalono as well good afternoon let's kick things off with the broader markets. stocks volatile into the close we're slipping not back to session lows, but in the red for
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all three of the major averages. the tilt today, different from what we've seen for the weekend as a whole the nasdaq is flat today but down 3% for the week what do you make of the action we've seen this week >> it's been a rotation week but also a rotation year we've been talking about this all yearlong from value to growth back to growth into value. and look, i think with the focus this week being the fed and being omicron, i didn't really think there was a lot that surprised us quite frankly but i think the fact that we were up 24 % headed into this week, that actually created more volatility the fed was no surprise. not at all we knew they were going to taper. we knew they were going to taper more that's what they did we knew there were going to be dot plots that were more haungish they were. i've been saying we should embrace taper and tightening we don't need emergency monetary policy not when you see growth of 8 %
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this quarter alone sure, that's not sustainable maybe we get back to 4% next year, but it's still going to be above trend growth that's good. we don't need the fed to put the pedal to the metal on monetary policy and inflation is everywhere. pick your gauge, what you want to look at is it wages? labor cost, employment cost index, rent? commodities, food, health care they had to act. what i thought was interesting is that you had the bank of england. they raised. the boj, they're going to end some of their q-e by march and you had the bank of russia continuing to tighten their 7th increase this year so we're at an inflection, i think. and that's why i think to answer your question, we're all over the place. right? because we just don't know how it's going to settle out on omicron, look, we don't know. we know it's a little less severe hospitalization rates are coming down, but we know it's more transmissible. so i think -- and there's a lot of things we're seeing that we're going to see partial closures let's see. it's going to impact the economy.
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but i think it's going to be short-lived. and i think we still have a lot of pent up demand in the economy. so stay with the barbell because we can't handle all the rotations every day, and outperform >> what's your take? you know, what the curve flattening, we're seeing a selloff especially in the financials today do you believe and do you agree with stephanie that we're at an inflection point here? >> yeah. i definitely think we are. there's a couple reasons why we mentioned the price pressure on tech stocks due to interest rates. i think that's a big thing i think a lot of that has been priced in based on what stephanie was mentioning i know if you're thinking about out further into 2022, there's increased volatility because they look to increase the barbell strategy employed. from my standpoint, every time we see the pullback, we've seen a rebound from the markets, especially on the tech side.
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i think investors that stay disciplined can see gains from that that's a big thing we're trying to tell our clients. and we're looking outside further with the inflation pressures. a lot of companies that are seeing inflation pressures, it's going to be based on how their margins are looking. we're looking for those companies that have those high emergenciens i think that's another area investors have to rate when you look at 2022 >> fedex still rallying after reporting strong results yesterday. frank holland is at a fedex facility with more good news over there, frank. huh? >> hey there fedex shares up 5.5% after a strong earnings beat $0.50 above estimates. analysts say the fedex is rizing the full-year guidance after lowering it last year, citing a labor shortage fedex's ceo also saying the company has strong pricing powers the company also launching a $5 billion share repurchase program and a $1.5 billion accelerated
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share repurchase program that's on the heels of fedex shares being in the red year to date however, they're on pace for their best day since may today >> frank, thank you. stephanie, what do you make of this news on fedex? do you still see an opportunity here >> no. i really don't i think it's a show-me story they are consistently inconsistent, leslie that's why the stock trades at 11 times earnings at a massive discount to ups. they haven't been able to execute consistently now, they beat and raised, but their raise was only back to where they were in january of this year. the quarter was mixed. express was fine but ground and ltl was weak. and margins were also weak but the guide is very back half loaded and they're expecting wages, wage pressures to go away and input costs to improve, and yeah, they have pricing power, but those are big ifs. and i think we have to wait given the fact these guys have had issues on the execution.
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on the execution front i am happy that they are buying back their stock at 11 times that's a positive. but this is a company that also bought tnt in 2016, and they still haven't integrated well. a lot of wood to chop. >> we are sinking into the close. dow is down 550 again. the low of the session was 6.1.3 from the intraday chart. we're approaching those levels which arrived earlier, 10:15 a.m. we bounced since then this last final 20 minutes of trade. not looking pretty down 1 .56% on the dow s&p is down more than 1% nasdaq in the red. they've been in the green for most of the afternoon. the nasdaq is the best only down quarter of a percent 7 1/2 minutes of the session shares of darmen under pressure after news the ceo is leaving. kate has the story >> darden lowered today by about 5% despite strong earnings results this morning this is as the ceo announces he's stepping down in may of
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2022 his successor will be the former cfo. they raised full year dwiends. the olive garden saw same year sales up 30 %. long horn increasing, and both of the seg nlts have gotten a nice boost in to-go business, a struggle for some of their casual competitors the company hiking pay to $12 an hour expecting worker wills earn about $20 on average an hour the stock lowered today. we should mention up nearly 20 % year to date it's a big outlier in this part of the restaurant space. back over to you >> thank you so much for that one, kate. steph, you like this one >> i don't own it, but i do like it i think this is a buying opportunity. i own mcdonald's that's been a good performer for me it's like the ten multiple points higher than darden. but they beat -- they raised across the board right? i mean, in earnings, in ebiebit.
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in comps and sales too much 34 % comp is an amazing overall comp for a comp of this size it speaks to the market share they're gaining. this is $195 billion total addressable market, this industry capacity is coming down 10%. this is ripe for companies that have size and scale. and darden has it. they also said their total revenues are about 9% to 11% ahead of precovid. things are going really well of course, the ceo was a gem he did a lot of great things he instituteed this profitability matters more than sales. and it's worked brilliantly. but they do have a good bench, and they have a good strategy. as i mentioned, they're in a good space with lots of growth i'm looking to buy it, actually. >> what do you make of the restaurant space in general, given some of the scary covid numbers that we're seeing and some of the major metropolitan areas. do you think that will keep people away from eating indoors
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as the weather gets colder >> i think that's to be seen as we get more data on how different variants affect our lives. i think another area with the restaurants are looking to refine two things. darden was obviously looking to raise wages. a big thing. you're looking at the fight for labor in the certain market for the restaurants. obviously you have to look at margins. you saw the darden ceo was focussed on profitability, and that's a big thing the fine dining business is one of the drivers of same-restaurant growth i think those are the two big areas. i look at the restaurants and the fine dining and how they're doing digitally as well as we need to man by making sure if laborability is strong i'd be looking to buy. restaurants have learned since march of 20 20, but not perfectly prepared for another environment like that. gm shares are not getting a boost after news of shorting the deliveries of the all electric
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hummer phil has more on what's driving that stock phil >> well, what's driving is it partially the news yesterday at this time. about the departure of the ceo of the cruise unite. today for general motors, the focus is on the first delivery of the all-electric gmc hummer and the significance here is t two-fold they said they would have deliveries before tend of the year, and also this is the first vehicle off the battery platform, the platformfor all of its electric vehicles they have a slew of them on the way. they have two delivered this week you've got the gmc hummer first delivery along with the bright drop vans. those going to fedex you have the e civil raw doe and electric sierra pickup trucks. those are unveiled next year deliveries starting in late 22, and then you have 30 models globally by 2025 remember, general motors, as you look at the stock over the last year, they're popping $35 billion into ev and av through 2025
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they're putting their money where their mouth is so to speak, and this is the beginning. we'll see what happens over the next couple years as they roll out these models and see how much demand is there >> $35 billion that's a remarkable number what do you make of this ev rampup and why do you think is market is not as excited as perhaps it might have been a few weeks ago? >> yeah. i think there's a couple reasons. obviously when it comes to general motors, they saw the head of crews was leaving. i think that's what pulled the symptom back a little bit, but in general, there's a pentoff demand for investors for ev. smaller companies coming to market that have had credible valuations including a company like general motors that had the infrastructure built out large investments they're putting into the space, it should turn around and feed investors when it comes to buying opportunities i like the stock and better
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plays when you look at tesla and different areas. general motors is one for folks to hold out there. >> as we approach the close, bouncing at 100 points only down 1.3% having been down more than that do you feel like we're set for a rally into year-end. is this a rally, or is it too hard to pick that out? >> i was just looking as you were talking just to see what the banks were doing. because they've been getting hit. you know the xl is up 31% year to date. so a little bit of profit taking the yield curve is flattening. i think the biggest question is me into the end of the year is what does the yield curve look like does it continue to flatten? it's probably telling us we're going to slow growth next year, but we know that the companies are hugely profitable they have great capital. if there's a place and by the way, great shareholder returns in terms of data so the valuations are attractive if there's one place i would look to nibble into the end of
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the year, it would be financials followed by the energy complex as we know, we all kind of are saying that the energy price in general is going to remain elevated for 2022 and into 2023 based on the lack of protection and esg mandates those are the two i would take a look at. technology really does take it on the chin. you've got to look at some of those names to pick away semi conductors would be one enterprise it spending is another area we have just under one minute left of the session while the nasdaq has climbed back into positive territory, all 11 areas in the snap are in the red as we approach the red they, in the green for most of the day. they are now in the red. all 11 sectors are lower the worst performers are energy and financials steph was saying, maybe presenting a buying opportunity for those that want cyclical exposure
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we approach the close. the snap down 1% the dow down 1 .5% the dnasdaq just in the red the week as a whole, the nasdaq down just shy of 3%. the s&p down 2 % the dow down 1 .7% for the week. on the session itself today, we closed down 1 .5% on the dow and ten basis points on the nasdaq welcome to "the closing bell". coming up, tony dwyre is here to weigh in on the one sector that could lead the market to grind higher into the year-end plus market turbulence driven by an up-tick in covid cases ahead of a holiday week. we'll talk to a top vaccine expert about how long he thinks this surge can last. stephanie link is here as is
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delano both still with us rotation, rotation, rotation this week. it seems like we want from value to growth, growth to value what do you make of this market action today, stephanie? >> well, i think people are kind of -- myself included, a little bit confused usually higher interest rates mean you don't want long duration assets. meaning a higher multiple stocks growth, technology stocks, that sort of thing. but higher rates also means that the economy is going to slow that's the whole purpose of raising rates. right? to put a governor on the growth and on inflation i do think the fed is behind the curve even though they are already getting more pro active and we talked in the last segment that you're seeing a lot of the global central bankers now getting on board as well because inflation is real. so there's a lot of things we have to watch. we're going to start to lose kind of a lot of the volume people are going to start taking off vacations. and make some people are going
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to say i made a lot of money this year. we're up 25% in the s&p 500 year to date. why don't you take profits and go away and let's figure it out in the beginning of the year and so that's why i think yo are seeing some rotation, because i think people are kind of figuring out where they want to position their portfolios for 2022 i say don't do a thing i think if you have a diversified portfolio and cyclical exposure, that's smart. that's where you're going to get leverage in and beta in your portfolio. you can't ignore the total addressable market story in technology it's interesting this week the staple stocks and health care stocks more defensive areas are acting better. there's plenty of areas in both segments that still are attractive so there's lots to choose from but i'm not doing anything until the end of the year. i'm positioned where i want to be. >> delano, sorry, leslie, i was going to ask quickly, quick toe has been soft late and today is that a buying opportunity >> i think it is
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so for a lot of our clients, they're taking cash and dollar cost averaging to a few of the coins we like. you'll see an up tick in january and more of an up tick later in 2022, especially when you see for institutions and a softening and more regulation standpoints that make investors more comfortable. so i think it's a buying opportunity. there's a lot that's happening in the space and there's a lot happening in the web three and meta verse that's drawing more attention. from our standpoint, we're allocating assets to crypto currency and believe there's up sides. especially if you look into january and february of 2022 >> well, it was a volatile week for the nasdaq the tech heavy finishing down 3% relatively unchanged for today joining us now via phone is brent phil, senior analyst thank you for being here we look at tech as this monolith, but if you dig beneath the surface, the real
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underperformers are the high growth profitless companies. do you think those have been oversold at this point >> leslie, i think you still have more room on the downside on the short term. we're seeing many multiples. for example, in software, which multiples we've never seen before historically. and so as we see this down fall in terms of multiples c we think there's more room on the downside as related to multiples that are going to contract with growth contracting we've had a covid pull forward and a lot of these internet and software stories we think as we go into next year, the biggest concern for us is just continued mutt pl compression. we don't think we're at the bottom yet obviously we've had a good correction we've had names like cloud flair, sauna, a number of names that have been hit very hard multiples have come up, but they're relatively expensive, and we think you can get a better opportunity to buy in 2022 >> does that, brent, start to apply more meaningfully to the
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megacaps apple down 5% for the week >> i think it is because what's happen second down small and mid cap is underpchling tech, and everyone went to large tech now you're seeing the large performance in large cap look at adobe. phenomenal management team they gave a concerted guide and the stock was hammered yesterday. we think everyone has been hiding in large cap, and that's the next shoe to drop. when you look at the microsoft ceo selling half his position because of washington state tax law. he probably looked at the stock and another 20% growth year and do it again, the answer is probably not even the executives are selling stock. >> when you say that big tech is the next view shoou to drop, how far of a decline are you expecting? >> well, i don't know if it's the next big shoe. my point is small and bid cap have been mid extra versus large.
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now i think large is coming undone, and we're seeing the beginnings of that with microsoft, adobe we think there's some multiple downside in the short-term we like the stories. we're buy rated on microsoft and adobe and a handle of other names but in the short term, i think given everyone that's hiding there, you'll see a rotation potentially out as we kind of clear the deck in the short-term on tech >> steph, what's your favorite megacap tech name? >> i'm under weight faang, but i own alphabet, and my most recent new edition was facebook when it fell 18% i have a hodgepodge of technology wealth. i have those two names and i like facebook quite a bit for 202. 2 -- 20 22 given the $50 billion buyback, but i like the semi conductor companies. tend markets are strong. like lam, end memory it's broad com
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they posted a great number and announced and increase in difr dend and $10 billion buyback that's ai, cloud, apple. and xpi is auto. they're humming along as well. and enterprise it spend names like i mentioned before, i own more of the value names in this year ib sm a transition to cloud. it trades at 12 times earnings management doing a ton of m&a tonight hpe, same drill. they're going more cloud 2 but a year ahead of ibm. eight times earnings and sysco. they're poised well for the recovery in it spending. it gives a 2 .5% dividend yield. i like that management great in terms of execution and their orders were phenomenal last quarter >> delano, are there any areas you see opportunity? >> i'm overweight in the big cap
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tech i think one of the areas we like in the buying recently is microsoft. one of the reasons as far as the big tech cohort, we like it because it's the highest margins. there's difference things in the business model, but they have the higher dividend yield than apple. if you look at the pullback over 5% in the past month, there's opportunities for investors to pick at some of the big tech names. if you look at the six-month performance compared to apple and look at the up side, areas they're looking to grow, we talk about a lot, the cloud area. we're looking at it spend growing. if they're growing there, that presents an up side in the stock. a lot of the smaller bets as well there are vr related bets connected to their gaming platform already it's strong there as well. >> we'll have to leave the conversation there thank you for joining us to weigh in there and steph, can we get your best idea zone in on your top pick as we stand? >> sure. for 2022, i like caterpillar
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i think manufacturing remains strong in 2022 they have lean inventories they have record backlogs. commodities are remaining elevated and i expect them to in 2022 and we do have higher inflation. that gives them pricing power. industrial production earlier this week showed a 5% annualized growth rate. that's really a big number and nonresidential construction in their wheel house is expected to grow 5% in 2022 they're going to grow faster than that. they grew some of their segments 20, 30%. and grew margins by 200 basis points they have booked a bill of 1 .2 times and they bought back 1.6 billion. the past quarter they have more to go and i expect it to be announced new in 2022. finally, they've focussed on services and sustainability initiatives. and i think that's going to smooth out their business to be less cyclical. that's a good thing. a higher multiple. and that's higher margin business i like caterpillar for 2022
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this >> how reliant is that as a call on global growth being strong next year? >> it is i don't know if we necessarily need to be super strong. i think they're just doing all the right things, and especially in the u.s this company gets kind of characterized as the china play. they have 5 %, 10 % of their business in china. they do a lot of business here and they're gaining considerable market share as i mentioned, they have initiatives underway in terms of building out this market share service is going to be a big one. and i don't think anyone is really talking about it. the management is talking about it but i think it's underappreciated and it's up 11% year to date and trades at 19 times which i think are somewhat trough earnings >> steph, delano, thank you both for joining us great to see you >> thank you >> thanks. we are just getting started on the second hour of "closing bell". up next, tony dwyer will outline
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four areas of uncertainty that could create volatility in the new year we're back in two minutes. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. retirement income is complicated. vanguard. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income.
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or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. stocks sinking in the low. the dow lower for the second straight day joining us tony dwyre. declines for all the major averages the nasdaq was the laggard, down 3% for the week. is that an opportunity particularly as it relates to the nads zach, or do you think there's more to come into year-end >> well, hello happy holidays to everybody. to me, when they come around and they finally hit the megacap tech stocks considered defensive throughout this whole period, when they finally come around and start punching at those, those are the only last bas chans that have held everything up
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it's closer to the end of the correction than the beginning. maybe for the indices, it will be choppy, but you saw the oversold bonds by the way the russell outperformed like it's been underperforming when i go back and look at when you look at the nasdaq advanced decline line, so the internals of the markets for the people that aren't familiar with that, they're back to where they were last october so you've given back all the gains in the nasdaq, advanced decline line going all the way back to last october and the russell 2000 is oversold as you get on the one we follow. this is tactical stuff, even though we're mostly fundamental. you've seen the kind of crunching under the surface that would indicate a correction due for a bounce >> i get that argument and i know the last couple times you've been on, you've made the case for why we could get a bit of a bounce. that said, next year do you think we're going to get resoundingly sound gains, and if not, as we get into new year, is
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it possible investors change their sentiment and decide well, it's probably more sensible to sit on the sidelines rather than take big, long positions >> well, as you know, our view is that each recession you've gone into into the last four comes for unique reason, but the solution is always the same. throw as much money as you can that means the market response is typically the same. you get a massive move off the recession base that's fuelled by excess liquidity, and then you start to get economic growth and wonder what's going to happen with the fed that's what marked 2005. that was an up 3% year, and even 201 1 which was a european debt crisis year, but it also was a flag year. i think we're going to be similar to that where we have monetary uncertainty we have fiscal policy uncertainty. we have inflation uncertainty. we have the midterm elections and a lot of geo political issues you're going to get oversold
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bounces. our game plan into next year is a little different it's going to kind of be what it was this year. our game plan into next year is rather than try to predict the next big move, i think we want to be in a position to react to the next big move. when you look at how the markets acted week to week or day today, it's opposite day. you know last like last you had a strong week, and now a weak -- it's just too hard with this monetary uncertainty to predict the next big move i'd rather be in a position to react. >> what does that mean to react to it? is it possible to still make money if you're following kind of the trends that are take police station in the market >> well, remember, consensus is usually right except for that one tenth of a percent time. you wait for times like this in the russell 2000 or the nasdaq, i have not been a big fan to the high growth high momentum names the entire year, but now they're getting to a level of oversold that make them more interesting again, that's where you want to
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be able to take advantage of market weakness with a good fundamental backdrop to see a sustainable drop in equities, significant and sustainable, you need a negative earnings outlook that comes from a negative credit and money viability outlook. either with the fed tapering faster than expected and the market pressing in some rate hikes next year, i don't see a position where you're going to have a negative economic backdrop coupled with a negative earnings backdrop. >> why is the yield curve behaving as it is when we have seen expectations for rate hikes increase and what does that imply for whether or not you should buy financials >> so the thing that's most interesting to me is i think the fed, what the bond market is telling me is raising rates next year might be a policy mistake and so when people are look agent the two ten-yield curve or five-year to 30-year yield curve, they're not looking at the yield curve that is most applicable to money availability the fed is currently at a 0%
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rate policy. when the two-year yield or the five-year yield rise, what does that do? it steepens the yield curve. the whole purpose of using the yield curve is to look at what banks or lenders get their money versus what they invest or lend it at. if it's still at zero and the two-year and five-year are rising, that is further incentivizing banks for next year to invest more or lend more so the right -- the yield curve that i would use because that's what it's designed for, is money availability tells, is the three-month to five-year because the average duration is under five years that's been steepening that's why i think the first half is going to be a little bit dicey. highly volatile. creating opportunities but the second half you might actually get a recovery, because you're going to have a better outlook for economic activity. >> tony, looking into kind of the end of the year, one thing we talked about in the first hour of closing bell was this new note out by jpmorgan looking
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at the technicals and how the narrative has really been focussed on the fed and omicron, but in reality, the derisking is coming from hedge funds, equity and macro hedge funds and short-selling. they believe that sets the market up for a short squeeze in cyclical rally into year-end is that part of your thesis? >> you've had a massive selling of stocks, really. and what you've also had, it's become excessive in certain areas because it feeds on itself now, i'll let marco figure out where it's coming from what i look for is where are we in terms of the indicators that suggest it's overdone? when you've taken the nasdaq, the internals of the nasdaq back down to the level of last october, i think it's a little bit excessive. at least warranting a bounce when i got the russell 2000, so hit that -- it's as oversold on the weakly thing i use,
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technical stuff, than the last time we were anywhere near here was the march low. so of 2020 so we're in a situation where it is kind of ripe for the year-end seasonal rally you start to see the bounce in the names that have been ie nighlated. which is why the russell is up almost a percent with the s&p down a percent >> it's remarkable we have about two more weeks left in this year, but it sounds like we are in for quite the ride. thank you, tony for being here today. >> have a great day and happy holidays >> you too up next, oil prices slipping today amid rising covid fears, but one major wall street firm is bullish on the energy market abid the uncertainty more on that call ahead. later we'll be joined by dr. peter hotez. siss sult his take on what buneeshod be doing in the face of risiing omicron cases. we'll be right back. what's going on? where's regina?
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welcome back the energy sector sliding today. pippa stevens here with a deeper dive >> that's right. energy is the worst performing
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s&p group sliding 2 %. it's also the worst performer on the week by far. dipping 5% now, there is some divergence within the sector. phillips 66 is the lone component that finished in the green and for the weekend, it was down 1%, making it the top performer amid a lot of red. fellow refiners, marathon petroleum and melero posting modest losses. devin energy and apa all fell about 9% for the week. this leg lower follows losses for oil and gas. both of which have come under pressure the gloeldman sacks saying oil could top $100 their see two scenarios. supply responds but inflation and rising oil field services cost push oil prices higher. or supply doesn't respond and since the firm thinks demand will hit a record in 2022 and 2023, this outcome would also boost prices
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to be clear, their base case is $85. they are not ruling out that triple digit handle. back to you. thank you so much for that much appreciated up next, bracing for economic pain. while many experts are banking on a rebound in growth our next guest is betting on a slowdown heading into 2022 the details after the break. plus a bright spot in the market today amc shares shooting home at the broad selloff, closing up 19%. eaas been particularly wk of late. we'll be right back. not again. oh no. for the gifts you won't forget. the mercedes-benz winter event. get a credit toward your first month's payment on select models.
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time for our news update >> from the news on cnbc, here's what's happening ghislaine maxwell will not testify in her own defense she told the judge just last hour, your honor, the government has not proved its case beyond a reasonable doubt, so there's no reason for me to testify >> the former companion to jeffrey epstein facing several sex trafficking charges. the defense expected to rest
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today. the long-time trump ally roger stone called to testify today by the house committee investigating the january 6th attack on the capitol. but roger stone says he invoked his fifth amendment right to every question he was asked. stone says he was not in d.c. the day and he did not go to the capitol. he denied any involvement in the violence and the european union's drug regulator has rejected a new treatment for alzheimer's. it's the same drug approved by the fda back in july amid widespread concerns about the effectiveness. the eu regulator says the drug does not appear to be effective in early stage alzheimer's and brain scans suggest it could also cause swelling or bleeding. the drug maker plans to ask the eu to re-examine the decision. tonight, the latest on the decision to toss out a -- we'll
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talk about one of the attorney's general fighting to hold them accountable on the decision. leslie, back to you. >> fascinating story i'll tune in at 7:00 stocks having a volatile day amid worries over the fed's tightening monetary policy and the ongoing pandemic despite these concerns, new york fed president expressed a bullish outlook for the economy during his appearance on "squawk box" this morning >> i'm pretty optimistic that we're seeing really strong improvements in the labor markets. i'd go into next year feeling baseline outlook is a very good one. in that regard, and, therefore, actually raising interest rates would be a sign of a positive development in terms of where we are in the economic cycle. but it's going to be driven by the data >> let's bring in the economic cycle research institute thank you very much for being here >> thanks. >> you have more of a contrarian
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take of where we are in the economic cycle right now you don't agree with what was being said >> respectfully no, i don't. in my ears did perk up when he said positive signs in terms of where we are in the economic cycle, because, of course, we're at the economic cycle research institute, and we have a completely different view. in fact, growth cyclicly has been slowing since last spring, and it is not over that slowdown is not over. and so the fed, you know, they've kind of woken up after thanksgiving they whatever happened and they woke up to the fact that inflation isn't transitory they're so far behind the curve. they have to play catchup, but they need a positive spin. so i understand what president williams is trying to do there,
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but the fact remains that the fed risks making a serious policy mistake tapering and tightening into the teeth of a sustained cyclical slowdown. the slowdown is not over >> i want to back up for a second here. what data points are you looking at that indicate that the economy is slowing right now, and why do you think these are not the same data points that fed officials are looking at >> right so when you're look agent the economic cycle, you're looking at output and employment and income and sales and those define the economy outside our window we have a lot of volatility around the covid recession and recovery and so you have these record-breakingkind of growth numbers to the downside and to the up side. now we're slowing down and so we've been coming off of these peaks. i think people were very surprised about how weak q-3 was. the headlines tried to pin it all on delta but it's really a cyclical, it's
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part of a cyclical decline that began last spring, and now that is going to continue we'll have a bit of a bounce in gdp numbers, for example in g-4 versus q-3, but you really, the economy, the economic cycle is output, employment, income and sales when you look at those hard data, they are slowing you can put them into different kinds of coincident indexes which we do to date where we are in the cycle we're very clearly in a growth rate cycle downturn. so take jobs, for example. sure, if you lose several million, many millions of people out of the job market, the unemployment rate is going to do down that's not a mystery when you look at jobs growth, what is going on with nonpharm payroll jobs growth, you see it's been declining for seven months straight. and when you take a look at
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income, transfer payments out of it, growth and real personal income has been going down for six months straight. those are coincident indicators of how the economy is doing. we're in a slowdown. you can take that to the bank. that's definitely happening. >> so i get your point that if you're right about the economic outlook, then tightening is not necessarily going to be the best course of action but if we don't get tightening, will we then get stagflation >> well, i thinkon the -- so stagflation, i just want to separate structural and cyclical structural, i'm not sure cyclical stagflation, by all means, we have that. we're well into this very strong cyclical upturn in inflation that's been going on for well over a year. i mean, it seems like the fed just found out, but it's a cyclical, not a transitory up swing in inflation while you're
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having a cyclical downturn in growth i'd say from a cyclical snapshot of stagflation, but it's unclear that that continues. it kind of depends where the inflation cycle goes it may be that the pace of the increase in inflation is topping out. although, the levels of crisis, i don't think are going to necessarily fall very dramatically any time soon but a lot depends on what goes on in 2022 right? we've got an economic slowdown if we can stipulate that, and the fed's tightening into it the way we read it, our expectation is one of two things happens, big picture either powell or the fed who have become famous for sudden pivots, pivot, again to become more dovish next year. or he keeps on going the fed keeps on going and sticks to whatever the current
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plan is. and something breaks you know and that means more serious recession risk down the line and if you take a look at things like the bond market, i'd say the flattening, the continued flattening of the yield curve is very much in line that's come into line with what i've been describing >> in terms of this sort of relatively bearish outlook you have, is that u.s. specific or global and to what extent is the view on the u.s. based on just the extraordinary stimulus we've seen kind of coming off in a way that might not be as strong a factor in different markets? >> right so just on bearish, i'm describing the economic cycle. you know, where the market ends up if there's a pifrt, i'm not sure another pivot. a pivot from a pivot but on the global back deron for all of this, it's a great question because our slowdown of overall growth is happening in the
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context of a global slowdown it's fairly pervasive. we're looking at about 20-something other economies they're all cycling down including the big areas like china or even europe and most concerning to us is that the global industrial cycle, which is a true global cycle, right because we're all part of a manufacturing chain in some way or another, are forward-looking indicators are good forward-looking indicators on that particular cycle. they aren't showing a bottom, and i kind of thought they might of by now, and they're not and so i think we have to contend with the other side of this global industrial cycle downturn we had a bull whip effect. a nice, sharp. it's called a bull whip effect because it becomes accentuated
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to the up side it's manifested in a lot of supply chain stories the same thing can happen on the other side you're seeing commodity price inflation, not the levels but the inflation of the commodity prices which is a key short leading indicator of global industrial growth coming off the boil pretty fast that's not over. so we still have some more to ride out here which is why i get a little concerned when you know, even the spin is that hey, everything is great. we're -- we've got a sustained kind of happy recovery next year i wouldn't say so fast i don't think that's happening >> yeah. there's a lot of uncertainty out there, but if there is one constant, it appears there's a confluence of risks that are certainly continuing through the end of the year. thank you very much. really appreciate it >> thank you very much thank you. up next, combatting the covid threat with cases rising many in corporate america have
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shifted their reopening strategies once again. we'll discuss what businesses should be doing in this time of uncertainty with a vaccine specialist first, the latest spiderman movie seeing some early success at the box office. and it's sending amc shares soaring today. losi bheg into that move wn "cngell" comes back. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions,
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check out shares of asana.
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the ceo bought $81 million worth of the company stock this week the purchase was part of a prearranged trading plan and brings the purchases to more than $170 million. that's according to the sec. asana was previously one of the biggest high nears it's seen a plunge in recent months for more on the story, thed to cnbc.com >> amc bucking the broader market selloff julia boston here with more. what's going on with this movie? good expectations for the weekend? >> good expectations and a strong start sony's spider man no way home has grossed $50 million out of the domestic box office just yesterday. that is the third highest preview gross of all time. internationally, the film has grossed $114 million in two days we are told the film can groes as much as $200 million in north
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america alone opening weekends now, this strong opening is less of a surprise, because the film set presale records and has drawn rave reviews for a beloved marvel character the question is how much omicron fears will impact the box office over the course of the weekend >> julia, thanks i like the super hero movies, but spiderman is probably my least favorite i'll see it, but it doesn't top my list. >> it's the marvel universe. it's all part of the marvel universe that's what makes it fun >> indeed. unnext, the big vaccine debate omicron cases hitting record highs in some parts of the country and business leaders weighing what their vaccine requirements should look like. we'll discuss with dr. peter hotez after the break. and later, carnival set to report results on monday
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what is going on here? >> well, how are you doing happy holidays to you. what's going on is that the coronavirus and covid is continuing to impact sports. the nfl is not out of the dark they're not out in fact clear. even though the super bowl is a couple months or about two months away, it's still impacting players. today they rescheduled games or postponed them the raps and the sea hawks and the washington football team and the eagles will be moving to tuesday. on monday, you have a double header espn will have their monday night football game and the browns and the raiders now will be playing that's all because of the outbreaks that happened throughout sports this entire week the nfl alone had about over 100 positive cases among their staff. and not even to go into the nba and nhl who is having hair own problems the nfl looked at this and said this is just not worth it. remember, the teams they postponed are still kind of in the playoff hunt
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you don't want those teams to be impacted because they have to -- don't have enough players to practice or compete. they had to do this for the essence of their product i felt like this is backlash because people are going to complain because they have to be pushed back, and also fans they're accustomed to going to watch football games sunday and monday now it's tuesday at the same time, it had to be done because of the outbreaks this week. >> what's the bar for a game to get cancelled? is there a set formula from the nfl or is it more kind of the discretion of them and the two teams involved >> well, if i think it's just listen, you look around the nfl. again, and they just were approaching the cleveland browns and the las vegas raiders, they were scheduled to play tomorrow. and so by giving them the extra few days, you allow players to have an opportunity to come back and play when you get to third string quarterbacks, you're putting
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teams at risk of losing games at no fault of their own. nobody can control when covid decides that it's going to have an outbreak. this was one of those things that you just couldn't plan for. the good thing is the nfl has a little bit of experience this happened before last season when they had to reschedule games. they understand the process. they understand moving games to tuesday, wednesday, that has -- it works you're not going to get the same tv impressions as you would on a sunday, but you get the game end. when you get down to third string quarterbacks and guys not being able to compete, they had to make this move not only for the safety of their players and the fans and personnel staff, but for the essence of their product. they had to do this. >> thank you so much we appreciate it for more, you can read a detailed report on cnbc.com. let's stick on the topic, the broader topic of the pandemic and we've seen a daily record of cases in new york. 20,000 reported. 21,000 dl reported
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the search comings as the percentage of fully vaccinated new yorkers stands at 70%. let's bring in dr. peter hotez at texas children's hospitals. great to see you dr. hotez thank you for joining us we want to watch u firstly on its transmissibility, what's your latest takedown? >> unfortunately, it looks like as advertised coming out of south africa and the uk meaning that it is more transmissible than delta and of course, delta was more transmissible than alpha and more transmissible than the lineage you're looking at something that's super jazzed up in terms of its ability to affect large populations and that's going to be disruptive in the united states
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that's what happened with the alpha and delta variant. doesn't look that lucky. pretty much here now and accelerating and you're talking about the nfl and the nba season, it's going to be very tough to continue the nfl and the nba season now for the next few weeks. i think the best case scenario is we see this is a major surge from now until, say, the middle of january and it starts to go down and we can pick things up afterwards that's problem number one. problem number two we still have delta here it's not like delta has entirely gone away. omicron is not necessarily a mild illness as many people are touting. it may turn out to be pretty much like the other lineages and so you've got this very screaming high level of transmission now starting up across the country, maybe as 20% of the variants in new york and
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new jersey and only going to get worse as we move into the holiday season the last pieces, how we sustain it all in terms of the health system because we see so many breakthrough systematic illness and trying to keep our health care workforce together and showing up for work, i think, not that they're going to get very, very sick but sick enough to be home i think that's going to present an added problem no question, we're going to have a really tough challenge for the next four or five weeks. >> you said you feel like omicron will be severe as some recent variants like delta do you have evidence that tells you that or don't have evidence to suggest it's less severe? >> it's the latter i'm not seeing really impressive evidence that it's less severe at this point, and exactly what
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the difference is in south africa whether the south africa population is younger or differences in genetic backgrounds, not to say it won't happen, i just don't think we can count on it. we shouldn't be dismissive of the omicron variant and just assume it's going to be a cold it may be for some people but remember, we have so many unvaccinated americans, especially in certain parts of the country like here in texas and the south and in parts of the mountain west. i think we have to plan for all hands on deck and in for a pretty serious wave. in part, because delta still here and in part because omicron will cause a lot of havoc as well. >> dr. hotez, for the purposes of our audience, i think what a lot of people are concerned about is kind of what this all means for the changing of human behavior because human behavior and comfort, of course, dictates a large portion of our economy's ability to function. do you think that based on what
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you've seen with omicron so far, what we know about delta being here, of course, everyone talks about the trifecta with the flu as well, do you think that we will see a significant pullback in activity for what people are comfortable going out and doing this winter? >> yeah, i think it may not be coming from the federal government, but i think it will be an auto pullback from families concerned about transmission in the household, especially if they have loved ones who are vulnerable because of age or because of underlying illness. so yeah, i think people are naturally going to start to dial back and both in terms of the holidays and in terms of looking at smaller gatherings and restaurants being outdoors and you'll see regional variation as well i think the big unknown is what happens to our hospitals and health systems and what happens
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if we indeed have a big segment of our health care workforce knocked out of commission because they're sick at home with covid-19 and how we manage that and the reason i bring that up is historically, over the last two years, our highest death rates occur when hospitals get overwhelmed, when icus get overwhelmed and now we potentially base that with large numbers of our health care workforce are at home because of covid-19 i think navigating that is very important. i just had a piece come out in the los a"los angeles times" whe may have to look at certain innovative solutions to keep our health care workforce in place one of them, and i don't know if it will gain any traction or not, is the fact that based on data that just came out today from imperial college london, the rate of the protection of
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the third immunization, the booster from symptomatic protection, three months after you get your booster and better for serious illness and hospitalizations but for symptomatic illness, it's not looking so great a lot of our health care professionals, including myself, were the first to adopt getting that booster and so nowyou're two or three months out and now you're vulnerable, getting symptomatic illness. do we consider a fourth immunization, for instance, as a stopgap measure to keep your health care workforce for the next few weeks >> that's right, and i read so many stories about the overall fatigue two years into this crisis and our health care workers. thank you very much for joining us, dr. peter hotez. up next, your wall street look ahead we've got rncaal resival results
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key closing metrics when we come back uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.
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carnival set to report on monday >> two we'll be watching to what extent will omicron
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impact bookings. and is carnival on track to break even in early parts of 2022 carnival and royal had been in a race to get more ships back to sea after moving a number of them to dry dock during the cruise ban that could slow down if bookings are weak according to analyst. shares of carnival up today but down 30% in the past quarter back to you. >> thanks so much, seema joining us on monday we're out of time. closing bell, thanks for watching "fast money" starts now. live in the nasdaq markets overlooking new york city's time square this is "fast money. i'm melissa lee. see some trouble oracle dropping today. big heading for the exits and later, we're talking spiders and apes it's just another da

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