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tv   Worldwide Exchange  CNBC  December 23, 2021 5:00am-6:00am EST

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5:00 a.m. at cnbc global headquarters and here is your top five at 5:00 going for three in a row futures are muted at this hour with the dow looking to extend its two day winning streak into the long holiday weekend shares of novavax are rising this morning following positive vaccine data in washington,the supreme court announcing it will hear a challenge to president biden's covid jab mandate. and almost done.
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elon musk sells more tesla shares after tweeting he had unloaded enough. and intel is apologizing in china, becoming the latest company to find itself in hot water over there it is thursday, the last trading day of this week, thursday, december 23rd, 2021. and you are watching "worldwide exchange" here on cnbc good morning, i am dominic chu in for brian sullivan today. let's get right to the market action because we are seeing at least a little bit of movement but we're trying for a winning streak here. the s&p is implied higher by roughly 6 points, dow by 61 and nasdaq by a modest 4 points but still green on the screen for now. the dow is on a two-day winning streak up more than a percent this week and 4% this month, the index overall is about 2% off its record high at this point. the s&p 500 is a percent off its record high.
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yesterday all 11 sectors were positive, led by consumer discretionary, which gained about 2%, tesla shares a big factor in that move. let's look at growth versus value over the course of the month. the growth is white line and orange line is the value etf that tracks the russell 1000, parts of those markets you can see up 1% for the growth, 4% for value, the orange line outperforming over the course of the last month period. if you look at treasury yields, some slight ticks higher across the yield curve. u.s. treasury note yields for the 10 year, just a hair below 1.47%. the two year right at .68% oil prices also a big focus as well as bullishness comes back to the marketplace, but in today's trade you can see u.s. benchmark, wti just about flat
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on the session, $72.70 the last trade there. and ice brent, just about flat as well, $75.27 there. let's go worldwide julianna tatelbaum is live in london with our latest there good morning >> reporter: dom, good morning european equity markets are off to a strong start building on yesterday's gains when the main benchmark, the stoxx 600 gained about .9%. yesterday we saw performance in the french market, gaining about 1% so we're seeing evenly spread gains from a regional perspective. from a sector perspective, we are seeing strong outperformance from travel and leisure stocks airlines in particular rising this morning seems as though investors are taking comfort out of the early data in the uk and south africa in the omicron variant, hoping it means the variant causes a
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more mild disease and early days, but investors seem to be taking respite in that data overnight and news out of astrazeneca suggest a third dose of the vaccine is effective at neutralizing the omicron variant. sentiment feels strong in europe this morning the luxury stocks are lagging a little bit this morning, perhaps what's going on in china with the new covid outbreak weighing on sentiment in the luxury sector >> thank you for that, julianna tatelbaum. merry christmas to you and yours as well. >> thank you. we'll continue to fol follow the cases in covid on the rise as family and friends plan to gather for the christmas holiday. alice barr joins us from d.c. the with the latest there. good morning. >> reporter: good morning. research shows the new antiviral pill from pfizer appears to offer strong protection against
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the omicron variant, which has now been found in 50 states. >> trying to put this up. >> reporter: this morning families are coming together for christmas with thoughts of omicron hanging over many celebrations the white house says small gatherings can go ahead. >> we're encouraging people to be boosted, tested and practice those strategies before they get together. >> reporter: but large parties with unknown vaccination status are a no. >> we urge you to stay away from situations that could put you at risk. >> reporter: as hospitals face a crushing wave of patients topping 200,000 two days in a row. nearly 1,400 people dying. with the unvaccinated paying the toll. >> it feels like no one is listening. i'm begging you to please get vaccinated. >> reporter: but there is hope as the fda clears the way for the nation's first covid
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antiviral treatment pill it should be available in days those supplies will be limited for now. >> in the early clinical trial data, it's 90% effective at presenting hospitalization and death in unvaccinated populations. >> reporter: the pills must be taken within five days of the start of symptoms, making early testing more critical just as tests are harder to access >> there should be more available and this should already be anticipated. >> reporter: the white house is racing to increase supply, trying to keep pace with the rapid omicron surge. new studies out of the uk and south africa suggest that omicron infections may be less likely to lead to hospitalization, those experts say we have to see how it plays out with our specific population and noting that the sheer number of cases will increase hospital stays. dominic. >> i'm wondering as we talk about the washington response to this, is there any indication
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coming from the white house or health officials at the cdc, elsewhere, about whether or not there will be updated guidance going into the new year, given the fact the holiday season will be concluding over the first week of january? >> reporter: right so president biden really laid out his new guidance a couple of days ago he has been very loathe to issue any kind of widespread stay-at-home orders and any kind of restrictions on travel. he said that because now omicron is found in all 50 states there's probably not a reason to restrict any kind of domestic travel at this point in indications of anything more serious, more restrictive than what we've heard to come. >> alice barr with the latest in washington d.c thank you very much. have a nice holiday weekend. now with the top stories bertha coombs joins us with those. >> reporter: covid issue hereby as well. shares of novavax rising this
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morning, the jump coming after the company said early data found its covid boosters showed responses against the omicron variant. the company is also working on a specific omicron vaccine, you can watch an interview with the company's ceo on "squawk box" this morning to learn more that's at 8:10 eastern time. meantime a study shows recgileas treatment showed its pill reduces severe infections. it's currently used to treat patients who are already hospitalized but the company is looking for fda approval to use it on people with less severe cases recovering at home stastrazeneca says a study
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shows its vaccine is effective against the omicron variant following a third dose so we have a lot of movement here but it appears we have to have that extra dose to really fight omicron. >> of course the markets are handicapping all of this in real time as well back to the markets now as the santa claus rally looks to be in place possibly with the omicron fears fading as we enter the final trading day of the holiday shortened trading week what to expect for the final trading days of this year with delano, a cnbc contributor thank you for joining us this morning. let's talk about whether or not the bullishness that you've seen over the last few days here means that there's an all clear sign for investors with regard to the fears over not just omicron, but of the fed as well? >> thank you for having me, dom. i think investors can continue the bullish rally. what we've seen in 2021, every
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time we had a reaction pull back with news, there's been a rebound in the markets, especially bullish activity in the coming days and weeks. so i think that's the theme of 2021 so investors right now can hold and keep their positions, i do think we've seen new data coming forth about the omicron variant that has been promising. as far as people, as you mentioned earlier on the program, as far as people having the third booster shot we're seeing the first fda granted pfizer pill soon to be released. so there's a lot of positive data in our fight versus the virus. so investors have been bullish consumers saying we believe, we're willing to spend, flush with cash, so the markets have acted accordingly in those cases. so we've been holding, especially the big mega cap tech positions. >> so big mega cap hasn't rebounded as sharply as other
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parts of the market. we alluded to it, the idea that value-oriented stocks seem to be outperforming some of the big cap tech and communities and media-type stocks. what would you be doing with your shopping list do you buy the big cap tech stocks or do you go to industrials and materials that could be there in this possibly inflationary environment in the coming six to 12 months? >> that's a great question in the coming six to 12 months we're continuing that strategy to want to be diversified. we want to stay overweight in big cap tech we like big streamers, looking at netflix, that's been pulled back a little bit but i think it's a rally to come there but some of the areas that are headwinds for the market, a hawkish fed as we mentioned. so that obviously bodes well for rising rates in 2022, which would be a better play for financials and some of the areas you talk about the bank stocks,
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the defensive staples looking at the second headwind looking at inflation still rearing its head we have a two-prong diversified approach i think investors can hold and look to add to their highest conviction mega cap, we look microsoft, apple, those businesses are going to flourish in the next six to 12 months but consumer staples bode well for investorsi don't think we see a multiple double digit rally in 2022, a possibility for more headwinds and some of the kind of bullishness to be taken out of the market in the coming 6 to 8 months. >> a lot of move yesterday in the consumer discretionary was due to a ruse in tesla shares. elon musk may have been done selling but apparently he sold a little bit more. do you feel the drop in tesla shares from the record high are
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enough to get into tesla at this point? >> we've been holding tesla for a while, i did add to some positions. it's a long play, a volatile stock, a stock contentious on both sides for people with opinions on it we like it not just for the deliveries that continue to hit the delivery numbers but it's more than a manufacturer of electric vehicles, there's a bigger play here, even with elon musk, the ceo, selling a bunch of shares we leave it long-term. the market cap you can't argue with the valuation being so high but we've been holding for a while. we like to add when there are dips so we have been adding to that position, dom. >> thank you very much have a nice holiday weekend. >> thank you, dom. you too. when we come back on the show, investment in clean companies hitting a record high even as the publicly traded stocks in the industry have not performed that well. what this could mean for your investments especially in clean
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energy that's next. but headed to break check out the pre-market's biggest winners and losers tesla is one of them, along with carnival. we have a long hour ahead still when "worldwide exchange" returns after this commercial break. ♪♪ ♪♪
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me too! woah, look! mom is on tv! she's amazing! (cheers) xfinity brought us together, after all! power your whole home this holiday with wifi speeds faster than a gig. click, call, or visit a store today. sing 2 good morning and welcome back to "worldwide exchange. if you are just waking up or
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headed into work right now, let's get you up to speed with the markets right now. futures indicating a higher open, albeit modestly, the dow higher by 68 points, s&p 7 points and nasdaq 9 points the crypto currency side of thing also key for investors as well bitcoin around 48,270, ether prices down about 2%, 3,919, the last trade there energy stocks have been red across the board but the space is attracting record amount of capital. pippa stevens is here with that. >> reporter: clean energy under performance this year has been well documented. the clean energy fund and solar fund are both down about 25% for 2021 but investors continue to pile into the space at a record rate, including in the private market.
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u.s. venture capital funding for clean tech hit $23 billion this year across 653 deals according to pitch book. the surge in funding is also pushing up deal values the average size nearly quadrupled in the first half of 2021 and 14% of vc funding goes into climate tech, which is a broad term that basically means businesses that focus omit gaig -- on emitting emissions. 60% is going to mobility and transport. this isn't surprising as everyone looks for the next tesla. cutting travel related emissions is important but it comes at the expense of capital for more critical decarbonization areas, including power generation clearly a lot of interest overall. >> there that has to be right now because of all thing to be
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in the future with the transition and aversion away from carbon. attention on climate especially in the wake of the cop26 conference what are the other drivers leading investors into this particular arena right now >> cop26 put a spotlight on climate change we're seeing it around us more and more, whether it's extreme weather or grid outages. there is a movement behind figuring out what the technologies have to be. there's a lot of dollars going to the space from companies and governments. investors are betting the technologies today will be important in the future. and there's a lot of corporations that just maybe don't have an enormous research and development budget so instead look to acquire smaller companies so the activity in the private market there's clearly a bet some of these will be acquisition targets down the line. >> those bets are key right now, right? that's maybe somewhat -- what else is behind the performance
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mismatches that we're seeing across this particular space there's clearly a lot of interest in the private market but these stocks are flailing around and losing trades for a lot of this year, especially in the public market. what exactly is the disconnect there? >> the public and private markets are different beasts as you know, and a lot of the technologies are years and years away and more suited to the private markets where investors have a longer time frame when companies go public, immediately investors want to see quarter over quarter revenue growth and earnings power and that's not necessarily the case with these technologies so dan goldman at clean energy ventures told me this is more suited for investors with the longer time frame and the spac boom we've seen this year has really accelerated some companies entering the public market that maybe otherwise would have waited and that's creating some tension as well in terms of performance before and after entering the public domain. >> that's interesting, lack of
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profits and revenues haven't stopped investors from piling into certain clean energy names as well. thank you. we appreciate it. this morning's top stories outside of the world of business, including covid ending one college team's bowl plans. stay tuned you're watching "worldwide exchange." >> announcer: today's big number, $6 trillion. that's how much goldman sachs believes will be needed annually in green capital expenditures to me netet zero, clean water and infrastructure goals
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welcome back let's check on this morning's headlines, francis rivera is in new york with the latest good morning. >> good morning. let's start with the house committee investigating the january 6th insurrection, they're requesting an interview with jim jordan. they believe that the ohio representative communicated once with then president trump on the day of the capital attack and is now asking for details about those and other conversations. representative jordan did not respond to nbc news' request for comment but in an appearance on fox news last night he said he would review the letter. on tuesday, republican scott perry of pennsylvania declined to cooperate with the committee. the pandemic is taking a toll on the college football
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season, texas a&m said it's pulling out of the bowl, due to coronavirus and injuries the ncaa is working to find a replacement team to play next friday. the college football semifinals also kick off next friday teams can advance to the final and win the championship if opponents forfeit due to covid issues both teams in the semifinal game unable to compete, the winner of the other game would be crowned champion the game for january 10th can't be rescheduled later than january 14th they said so that's the situation there. ♪ that's brittany spears giving fans a hint at the high
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notes. she has not released a new album since 2016, so living her best life when it comes to that c conservatorship being determine nated. >> i remember listening to britney spears when i was in college. that made me feel old right now. thank you very much, have a nice holiday weekend. >> you too. shares of jd.com dropping in hong kong trading on news tencent is cutting its stake there. that story and other big movers coming up next if you haven't done so already please follow our podcast. check us out on apple, spotify or podcast app of choice "worldwide exchange" will be right back
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good morning is santa claus coming to wall street this year we will soon find out. elon musk might not be done just yet what the tesla boss is selling and what he's picking up plus, intel is apologizing in china becoming the latest company to find itself in hot water over there. it is thursday, december 23nd, 2021 and you are watching "worldwide exchange" right here on cnbc. welcome back to the show i am dominic chu in for brian
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sullivan today let's get to the markets because stock futures are indicating we could have a multi-day winning streak on our hands. the dow is implied higher by roughly 75 point, s&p by 8 points and the nasdaq higher by 15 not a lock but still green so we could have a multi-day winning streak on our hands. treasury yields also ticking higher implying bond prices are lower right now, the ten mark just a hair above 1.47%. the two-year treasury note yield is hovering a hair about .68%. for this morning's top stories, bertha coombs is back with those headlines. >> shares of jd.com plunging in hong kong today. this comes after tencent announced it would be declaring a one-time dividend and giving most of its stake in jd.com to
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shareholders shares ended the trading session lower, tencent closed up about 4% elon musk tweeting he's almost done selling tesla shares after saying a day earlier he sold enough to meet his goal of 10%. musk has exercised more of the stock options set to expire and sold another 934,000 shares worth nearly $929 million. the tesla boss has now sold about 14.8 million shares since november 7th when he first published that poll asking twitter if he should sell 10% of his stake for a tax bill. the s.e.c. is turning down apple's request for a proposal calling on the tech giant to show how it's working to keep
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forced labor out of the supply chain. the s.e.c. denied apple's request to block the proposal saying it does not appear that the essential objectives of the proposal have been implemented so far this means apple will have to put forward a vote on that proposal at its annual meeting next year. the s.e.c. a lot tougher on tech these days, dom at least the tone is tougher. >> a lot more active as well thank you for the headlines we appreciate it. to the latest in the covid-19 pandemic. new studies out of south africa, scotland and england showing omicron infections result in mild illnesses it might have biological features that make it less dangerous than the delta variant. that said low rates of hospitalizations could be due to the relatively high rates of vaccination in certain parts there. on the treatment side of things
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the fda is granting merge use authorization to pfizer's oral covid pill the company saying it is ready to start immediate delivery to the united states and the white house also adding that the government could have 265,000 courses available by january all of this comes as case counts in new york and new jersey continue to surge with new york city seeing 11,000 new cases in just one day new jersey cases spiked 42% in one day on wednesday to the highest number of the entire pandemic hospitalizations, though, still seen at levels not seen since april of 2021, but much lower than the peak of a year ago. newark's mayor saying on twitter he tested positive for covid but has no symptoms. joining us is the president and
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ceo of newark hospital thank you for being here, doctor the last time we spoke we were talking about the efficacy or necessity perhaps of a booster shot no matter what shot you took initially and then maybe the initial parts of the discussion on omicron. have you, as a medical doctor, changed or altered your view or opinion in way in the subsequent days and weeks given what you know about omicron and the studies we just mentioned? >> thank you so much for having me this morning. i am more optimistic based on the data you mentioned out of south africa, scotland and other areas of the world the severity of omicron appears to be less we've had flat hospitalizations here for about four days now, preceding that, though, we had an increase of twice the number of hospitalizations for a period of two weeks which had me concerned. but none of that is proportional to what we've seen in new
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jersey, there are lines outside our testing clinic here, and throughout the city and region so the lower severity picture does appear to be happening, however, our staffing workforce issues are getting worse the fact that a lot of health care workers have to be out is a risk for every other non-covid issues we're facing in the hospital we maxed out for noncovid issues our icus are full with non-covid patients because of deferred care we have to move on from this and part of the difficulty of doing that is so many of the staff have to be out with the illness during the surge. >> doctor, have you seen in your hospital -- i guess the best way to put it, i know folks who have now had some of their surgeries that are nonlife threatening delayed or deferred because of a
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lack of capacity do you feel as though hospitals are at that stage where they are now turning away or rescheduling or postponing certain types of procedures because there is an increased stress, if you will, on the system because of covid >> first thing i'll mention, there are degrees of severity and urgencies on surgeries we have seen issues with folks have been delayed procedures that may not be emergent but are necessary for the health and safety of patients in the medium term so yes, we are starting to see the need to shutdown ambulatory and clinic practices we've seen fewer surgical cases in general from the holiday season but if we have to pull back on that care again we may see a greater surge of non-covid related issues because of delayed care so this issue with our staffing becomes really important as
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cases rise exponentially so are our employees out of work rising exponentially just over the last couple of weeks. all of this needs to be considered in this light of our current regime here of keeping workers out of work with a positive test especially if omicron is less severe >> so if omicron, if omicron, is less severe, which much of the early data, yes, it's admittedly early, which much of the early data suggests is there any kind of change that could happen where this is now a good thing for us because if it's less lethal, less deadly, less virulent but it just transmits more frequently, it becomes more like the common cold or the flu? something that we can be vaccinated for every year, is that in our future is that what we are dealing with with covid going forward >> i certainly hope so there are early signs that may be the case. although i'd want to see a week
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or two more on data on severity here especially when it comes to older, vulnerable people but if we're in a situation this is a truly mild illness and the risks to vulnerable people are low, then revisiting the number of days we keep folks out of work, in isolation, in quarantine, making sure we're keeping with the evidence and ensuring there's a negative test and having all the safety protocols in place to be certain, but all that said we have a pretty strict regime now on isolation and quarantine. and the number of days so, i think as we get more information and i know that the federal government and states across the country are reassessing this, i think it'll be important to figure out how we restart and calibrate here, again if omicron does prove to be a much less severe illness. >> always great to get your insights, thank you very much. we appreciate it have a nice holiday weekend.
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>> thank you. are consumers shopping this holiday season or are supply chain issues, online options and covid fears keeping them away? first, as we head out to break, some of this morning's biggest pre-market morvers right now in the nasdaq, tesla is one of them, nvidia, trip.com stay tuned you are watching "worldwide exchange" right here on cnbc. age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond.
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welcome back to "worldwide exchange." if you are just waking up or getting ready for work, let's get you up to speed with what's happening in the markets right now, futures indicating a higher open by roughly 90 points for the dow, 10 points for the s&p 500 and nearly 20 points for the nasdaq modest but still it could be green and mean a multi-day winning streak as we head into the christmas holiday weekend. this is the last trading day of this week. crude prices for west texas intermediate just about flat on the session, $72.75, ice brent up about .1% a dime, $75.39 the last trade there. just a couple of days until christmas, president biden saying the holiday supply chain crisis has been averted. it comes at a critical time for small businesses across the country, 17% of which expect to
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make half of their revenues in the final three months of the year joining us is john stanford from the small business round table this is maybe good news. can you tell us whether or not in your mind with your consistency that the supply chain issues have been averted and businesses will be back to quasi normal this holiday season. >> good morning, happy holidays. thanks for having me i don't think we can consider anything normal right now. we were pleased to hear about some of the steps taken to alleviate supply chain issues. but i think a lot of credit to those taking advantage of the holiday season, you alluded to great numbers about how important the sales are right now. i think small businesses came to the table better prepared. we lived through 2020 and knew to get out ahead in 2021 but there's still a supply chain crunch to be sure. i think the crisis has been mitigated in a lot of places but
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we have folks clammering to get things in, we have prices that are high for certain goods and small businesses are just pivoting so i think hopefully we see a great deal of success out of small businesses over the next couple of days when numbers come out. yo but i think that has to do with innovation more than anything else right now. >> do you feel right now with the folks you talk to, the businesses part of your group, do you feel they're optimistic about business getting back to normal given what we're seeing with not just supply chain issues but things like labor availability >> i think to be an entrepreneur you have to have optimistic. so the ones we talk to are optimistic and they're finding new ways to succeed. finding ways to adjust their businesses we talked a lot of them going online our recent report shows that more businesses are going online than ever.
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i think they're optimistic from that perspective i have to say brick and mortar folks are concerned about a new variant. you really find these concerns looking a little different as how individual states are reacting to the new omicron variant. so i think that's the most pessimistic group is concern that foot travel will be down yet again at a critical time due to the surge but others who found themselves online remain bullish on not just finishing 2021 strong but for a 2022 bounce back for small businesses. >> what is the playbook, john, if there is one? obviously every small business is unique in some way. but is there a general playbook about what this pandemic has done to lead them to pivot their businesses maybe adjust their mix between online and instore if anything or is there more of a tilt towards ecommerce that's going to be secular in nature going forward? >> i think everybody has shown a
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pivot to digital, that's looked different for sure for each sector and depends on what type of business you are. that's the key part of the playbook, get your business online or find a way to perform across all channels. for some businesses, that's more realistic than others. i think the other playbook has been something you brought up earlier. how can you streamline your labor force, because workers are in such demand right now, another part of the playbook has to be how can i do more with less we're seeing entrepreneurs really finding a way to do that, but really getting digital has been -- you know, is something we're going to take out of this crisis, this multi-year crisis, just how important it was being able to access your customers when they can't walk through your doors. >> of course thank you for those thoughts john stanford from the small business round table >> merry christmas. >> merry christmas to you and
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yours. now bertha coombs is back with the top trending stories. bertha i think we may have lost bertha over there that does it for that particular move here. on deck for the show, the true definition of a santa claus rally and why you cannot afford to misunderstand it. i get a lot of remarks that no, that is not a santa claus rally. we'll explain what that is after the break. if you miss "worldwide exchange," check us out on apple or spotify or other podcast apps we'll be right back after this break.
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welcome back to "worldwide exchange." we are just days away from entering the so-called santa claus rally period, which spans the last five trading days of december and the first two of
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january, that's the technical definition the importance of market psychology cannot be under stated here. that seven session stretch is one of the strongest of the year the markets gain around 79% of the time with an average return of about 1.3%. but if the markets post a loss in that period, it's happened five times since the year 2000, then january has ended in the red as well. let's bring in jeff kilburg, a cnbc contributor the amount of times over my media career and business television that i've been talked about with regard to correcting the santa claus rally has been e nume nume e numerable. it is five trading days at the end of december, two at the beginning of january how important is this, jeff, for you as a trader and investor, do
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you watch it or is it just noise? >> no, dom, we do watch it happy holidays, pal. we talked about the santa claus rally and certainly there's been a lot of fog for santa to get up and out on his sleigh, but we're seeing the positivity. if you look at the chart of the s&p 500, dom, $4,700 has been thin air and the santa claus rally which i see testing all-time highs and making all-time highs before the end of the year has been driven by the overcoming of fears we're dealing with the third bout of covid, this variant right now, omicron, certainly the knee-jerk reaction was concern about additional lockdowns we seemingly are overcoming that and focussing on the consumer look at the consumer confidence yesterday. as you know, the consumer drives 70% of our u.s. economic growth. that's up about 10% in the last 30, 40 years so i focus on the last five days
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in the first two days of the santa claus rally. the sentiment to a tremendous year but also to set the tone for 2022 >> what exactly is the tone, do you think? jeff, for 2022, given what you've seen, not just this year in its entirety but specifically in the last, say, one to three months >> i would say my daughter's long list for santa. i have a long list for why i'm constructive and optimistic moving forward putting outlook 2022 next week but let me give you a preview. the main reason, the undercurrent we talk about tapering, interest rates which i'm in the camp we're going to see one rate hike next year. but the real undercurrent is the fact that the fed's balance sheet is $9 trillion, that's a capital t, dom, and that safety net provides the market opportunity to move higher but we look at things we don't talk enough about, look at q3,
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epic buybacks we saw 16% year over year growth in the buybacks of course, apple took about $2 billion of that we look at $4.5 trillion still in cash. i think the biggest risk to the market in 2022, once again, dom, will be not invested you have to be invested but you have to be considerate of what sectors you want exposure to and the match between growth and value, that persists in 2022 >> what's interesting right now, there are a number of geopolitical risks we haven't talked at all about over the course of the last several months here but maybe there's a reason because risks are transitory in nature and we haven't cared about them for years at this point. is it fair to say it's all about the fed and covid in 2022 as well >> i think it's more about the fed potentially making a mistake. it's interesting, we've seen
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people talk about the hawkish turn of the fed. i don't think chairman powell has been hawkish you have to separate tapering from interest rates and unwinding their balance sheet. he's been dovish from day one we talked about on march 23rd when we were at the market low in 2020, he talked about being there in unlimited capacity. that's what they've done when you see the dovish commitment that puts them in the position to have optionality fed chairman powell is poised and positioned well to have the ability not to raise rates but sit and react and let the balance sheet push the market softly higher. >> the word i haven't heard from you in the last few minutes and i thought i would have by now is inflation. because that's been a key point for many investors over the course of the last several months and for good reason because we are running at some of the hottest paces on record right now. is inflation still going to be an issue for not just the u.s.
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consumer, which as you point out runs more than two thirds of the u.s. economy but for investors as well? >> i think it is an issue, dom, but i think it dies down in q2 we talk about inflation all the time what are the main drivers, it's used and new cars. i think here in chicago, i was on a car lot, a chevrolet dealership yesterday and they have a lot of used cars for sale i think the shortage of semiconductors, the new cars, i think we go from a shortage to potentially a glut that brings inflation back down and plays into the hand of the federal reserve not needing to raise rates. we're seeing inflation, tangible here in the heartland of america, but that's not shying consumers away we are seeing consumers spend about $1,000 this holiday season on gifts and supplies. i'm not going to use the word transitory, but i see inflation
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cooling in q2. >> before we let you go, jeff. the dips have been bought, they continue to be bought. i don't know when it ends but if they do, hypothetically continue, investors buying dips, what exactly should they be buying if things pull back in price? >> i think you have to talk about this wrestling match between growth and value we talk about tangible blue chip names we call them essential names, look at the laggards, if you look at verizon, boeing, even visa, these are names that have not performed well, all been in the red in 2021. so you have to consider it's a 2.0 of peter lynch buy what you know buy what you use of course apple, amazon, facebook, all these names are in there but the way you have exposure to the blue chip names more weighted versus market share, that's going to bode well in 2022. >> thank you, jeff
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merry christmas to you and yours. we'll see you in the new year. >> merry christmas, pal. that does it for us on "worldwide exchange. "squawk box" picks up the coverage next. i wish all of you and yours a happy and healthy holiday season and happy and healthy 2022 ♪ i see them bloom ♪ ♪ for me and you ♪ ♪ and i think to myself ♪ ♪ what a wonderful world ♪ a rich life is about more than just money. that's why at vanguard, you're more than just an investor, you're an owner so you can build a future for those you love. vanguard. become an owner.
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good morning, futures pointing to a higher open after that session turned into a pretty bullish one yesterday the bulls will now try to make it three in a row. before the long christmas holiday weekend. this is the last trading session. the fight against covid, while case counts have been rising we're getting upbeat news from multiple bio tech companies this morning and overall studies about the variant and its severity advertise
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tis the season for toasting, first it was french fries now reports of a champagne shortage. we'll bring you the full story as "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. it is the last trading day of the week this is it, folks. yesterday was a strong day for the bulls as joe mentioned the futures this morning, there are significant green arrows once again in terms of points, dow indicated up triple digits, s&p up by 11, nasdaq up 25 yesterday the strong moves made it so week-to-date at least both the dow and s&p are in positive territory, each up by better than

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