tv Worldwide Exchange CNBC January 27, 2022 5:00am-6:00am EST
clover does that. this is really good. secure payments, the tools you need, people who can help, we do that. talk to a clover business consultant today it is 5:00 a.m. at cnbc global headquarters. here is your top five at 5:00. global markets under pressure after jay powell signalled the likely central bank first rate hike of the pandemic era investors getting ahead of the fed. pushing bond yields lower. and musk makes history once again. tesla reporting the best fourth quarter results as vehicles
surge. investors not iimpressed a stocks triple dip despite the surge in demand. the names to watch ahead talk about catching a stock on sale. what hedge fund billionaire bill ackman says about the market value cut 25% in the recent days it is thursday, january 27th, 2022 you are watching "worldwide exchange" here on cnbc good morning i'm dominic chu in for brian sullivan today kicking off thursday morning with u.s. stock futures well off session lows here. if you look at what is happening. s&p is implied higher by six points dow joins by 15 and nasdaq by
56 check out this chart of the nasdaq 100 futures over the past 12 hours we had been indicated lower by almost around 2% at one point and look at this we rallied back in the last couple hours to see positive territory. we're now implied higher by 56 points now this morning's action after a mixed day of trading yesterday. that saw the dow fall 130 points after the fed suggests it has room to raise interest rates before it poses a threat to the u.s. economy on the treasury side of the heels of the comments from fed jay powell you see ten-year treasury a hair above 1.2% two-year higher at 1.19% higher in the shorter end of the rate the two-year note trading highest since february of 2020
we cannot leave the crypto market alone we have seen a lot of volatility there. it is to the down side for the crypto space bitcoin price is down to 36,540. ethereum down at 2,439 the stock of the day tesla. shares right now as you can see moving to the down side by .50 of 1%. you see the trade in the after hours session and going into the closing bell and through the pr pre-market trade as well thing fourth quarter results came in above expectations revenues above year over year. elon musk and company warning the supply chain issues will per persist. we have more on that stock through the morning.
tesla shares down .30% of 1% red arrows across the board in asia overnight. europe getting the trading day going. let's go to cnbc's rosanna lockwood in the london newsroom with the latest there. >> dominic, that intense roller coaster ride you showed you with the nasdaq is a similar journey in europe opening in the red you see a mixed picture. some steam gaining in the index. the ftse index up .40% presidential elections going on in italy the same the cac and france struggled to get ahead. and in germany, down .30%. that is despite deutsche bank is propping up the sector leak look at the sector
i want to point out banks here up 1.9% given the fed announcement it will be a boost to lending rates in retail and investment banking. one also to look at and travel and lessald leisure. we have individual stories in airlines tech is weighing heavily in europe dom. >> thank you, rosanna. back to the top story here at home and the surprise to no one. fed signaling it could raise rates for the first time since 2019 falling short of the specific t t timeframe during that discussion it did not say when they would reduce the balance sheet jay powell says the fed could move on an aggressive path
>> i don't think it is possible to say exactly how this will go and we're going to need to be, as i mentioned, nimble about this the economy's quite different this time. i said this a couple times the labor market is much stronger growth is above trend. even this year all of those things going into thinking into monetary policy. >> let's get more insight now with the fed and markets with komal sri-kumar. sri, it is great to see you. let's talk about the comments from fed chairman jay powell the markets are reacting more vo volatile these days. more than anything with regard to russia and ukraine.
is the fed in a position in your opinion where we can navigate the rising rate environment without throwing the u.s. economy into recession >> good morning, dom great to be with you the answer to your question is no the fed is not going to be able to do it in a successful fashion. typically, a soft landing, which is always the expectation with the fed seldom achieved in actual practice. look what happened and based on what you said a few minutes ago, dom. they talked in terms of forward guidance in the past you hear chairman powell saying the inflation is transitory and repeated no increase in interest rates and everything was hunky-dory he gave you a lot of guidance when you didn't need it. just now, with the markets volatile and you need help and a
clear guidance from the fed on how it will proceed and the questions asked yesterday. what pace at which will you reduce the balance sheet will you increase by 25 basis points or 50 basis points? there were no answers. he was not going to tell you anything in terms of the 2 to 10 presented as you referred to, dom, it is flattening in a hurry. this is all against what the fed wants. the flattening can quickly move to a negative spread which means the two-year will offer you a higher year than the ten-year. if that happens, it is a precursor of recession i'm looking forward to seeing where it goes, but i think chairman powell doesn't leave you much of an option of looking at a deterioration in the market >> sri, you mentioned so many of
these headwinds that you are seeing right now we know the markets have been reacting, specifically in equity is there a scenario right now where you can explain how it is that the markets are as volatile intraday as they are what is happening with regard to what you are seeing in positioning or sentiment why can we go from 1,000 point down day to one day and closing up and seeing futures from 2% lower to being modestly positive in the span of three or four hours? >> there is a tense amount of speculation, dom, which is contributing to it secondly, a lot of option action and people taking short-term positions and trading positions which are reacting to the developments on top of that, when you throw in the uncertainty of the fed's
next moves and for instance, we have moved from not looking at any interest rate increase from 2022, to looking for up to five increases in 2022 alone. when you have that much of a range, it is not surprising the day-to-day volatility increases because of the intense amount of diversity in what investors expect it may happen in the markets that will not go down dom. the fed move yesterday and press conference accentuates it. >> sri-kumar thank you. we look forward to hearing from you in the coming weeks with the fed unveiling strategies here. to a developing story this morning. hong kong is cutting its quarantine rules for incoming travelers. february 5th, those will need to isolate for ten days as opposed to the current 21 days
hong kong's leader carrie lam is asking people to not gather for the upcoming holiday le . let's get to the other top stories with silvana henao >> and late yesterday, bill ackman purchased $1 million shares of the company in recent days the move is worth $1 billion that is off the steep shares of net flicks ackman says he is a big p fan and thinks investors are ignoring the potential netflix shares are down 26% alone in the past week moderna is starting the clinical trial of the booster shot that targets the omicron
variant. the first participant in the trial has received a dose of the omicron specific booster and expects to enroll 600 adults moderna shares are under pressure in recent weeks before the market opens apparle is planning a servie to accept payments on iphones without external hardware from square or paypal the company has been working on the new feature since 2020 when it paid $100 million for a canadian start-up that developed the technology needed for a phone to accept tap payments dom, they are makes it easier to spend money. >> that is a good sign thank you, silvana. when we he come back, pinnig the supply chain issues squarely
almost every company mentioning the impact on their earnings calls. according to rbc, the struggles may not let up any time soon joining us now is michael tran at rbc capital markets he is analyzing the pace the ports are trending michael, thank you for joining us digital intelligence what kind of data are you looking at is it the port blockages what is shaping the view on supply chain >> thank you, dom. our view with digital strategy within rbc where the idea is we look at research powered by data science and alternative data our approach toward looking at major macro issues is anything but normal
when you talk about the ports, we use special analytics to monitor 22 of the ports. what we do is to understand what is happening at the port is we use a geofence or draw a boundary at the port with that boundary, we leverage or monitor ship transponders we look to see when they enter the boundary and when they are ultimately discharging at the port and when they leave the do boundary we have been able to monitor the pace of which ships are moving in and out of the boundary we call this the time of turn around what is important is with the port of l.a. at long beach, the port we are focused on is it is taking seven days to turn that ship around. pre-covid, that is 3.5 days. it is twice as long for each ship to really circle through the port the last thing i'll add, dom, is
we are able to leverage foot traffic and understand how many people are at the port port of l.a. long beach has a significant amount of foot traffic. this not a worker issue, but a consumer demand backlog. >> if the biden administration has made a lot of comments of trying to solve the issues and traffic is getting back to normal what do you see trend wise is it moving in the right direction? if so, how long does it take to get through the issues >> such a great question i would be cautious in calling for a real trend or timeline right now. the reason why, dom, back in the fall when supply chains were all the craze, we all really thought that things with lineally improve. why not? to your point, we saw biden call
ports to open 24/7 we also thought as covid starts to taper, more longshore workers would come back to work and you would move more freight. post the christmas surge and buying, if you are buying less stuff, there is fewer ships to show up at the port. if you have the trifecta, you would think things improve or loosen up. what we are seeing is some of the things are red herrings. that is due to the inflow of demand for consumer goods. this is agnostic of covid. the ports were never built to handle this level of ship or demand for goods if consumption were to remain elevated, demand for goods continues this strong, hypothetically, these ports will never clear. >> interesting point, michael tran infrastructure is a big part of
the solution going forward michael tran, thank you. >> thank you. still on deck for the show the morning's big set of money movers triple chip dip. and elon musk with the $25,000 electric vehicle, but he is excited about one thing find out what it is when "worldwide exchange" returns after this searching for savings on your prescriptions? just ask your cvs pharmacist. we search for savings for you. from coupons to lower costs options. plus, earn up to $50 extra bucks rewards each year just for filling at cvs pharmacy. ♪♪ at cdw we get your teams work in different places,
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welcome back time for the big money movers. four stock stories of the morning and the chip triple threat samsung. lower in asian trading reporting that profits rose 53% in the fourth quarter. that was in line with the company's forecast lower than analysts expected due to the shipments of memory ships. samsung expects recovery this year those shares down 2.75% in korean trading number two is intel. also lower in the pre-market despite posting record fourth quarter revenue. the guidance fell short of
estimates. it is confident about the demand and the management of supply chain issues pat gelsinger expects the problems to linger into next year off 2.75%. gelsinger will be on cnbc at 11:00 a.m. and shareses of seagate are up after predicting a wider margin ahead. predicting the highest revenue quarter on strong demand from cloud data customers. and finally, check out what is happening with teradyne shares down 15% sinking after first quarter guidance fell short of projections. that after fourth quarter results from testing and automation markets
it manufacturing testing equipment for samsung and intel and texas instruments and ibm among others. let's get a check of the other top headlines with frances rivera in new york with the latest good morning, frances. >> good morning. president biden is wading into the battle of the supreme court. the source confirming to nbc news that justice stephen breyer is scheduled to appear at the white house with the president the 83-year-old justice is expected to formally announce his retirement from the bench. as for who could take his seat ketanji brown jackson. she was confirmed last year for the u.s. court of appeals for the d.c. circuit also in the mix is judge leondra kruger who has served on california supreme court since 2015 she argued several cases before the supreme court. if confirmed, the 45-year-old would be the youngest justice on
the bench by five years. and the growing chrisis in ukraine. secretary of state offered russia the path forward, but rejected the ban for russia to join nato. the western intelligence official says russia has 120,000 troops on the border and the record setting run of amy schneider met its match 40 straight victories came to an end after losing out on fine at jeopardy she finishes with $1.4 million in winnings. as for schneider, she will be back for the tournament of champions this fall. she is representing if the
and tesla and the fourth quarter results as elon musk lays out the challenges in the year ahead. and apple gets set to report the quarterly results later today. what one industry analyst says is the number one headwind facing the stock ahead of the big take it is thursday, january 27th, 2022 you are watching "worldwide exchange" here on cnbc welcome back i'm dominic chu in for brian sullivan here is how stocks are looking through the 5:00 a.m. hour i'm going to call them stable. this doesn't tell you the whole story. s&p implied higher by 2 points dow lower by 15. the nasdaq higher by 29. it looks okay. check out the action over the past few hours we are well off the session lows at this point here
at one point the dow jones industrial average was 400 points i checked and it has been a steady rise over the course of the last two or three hours to about flat for the dow jones industrial average futures nasdaq futures are down 2% in a rally back to positive territory. the volatility continues watching yields now as the fed signals the first interest rate hike since 2018. it may come in march two-year notes are a hair above 1.18%. we have seen a sharp higher in the two-year the ten-year is 1.814% with the last trade the 30-year long bond is the 2.14%. oil continues to tick higher you see the trade for oil has been to the upside by about quarter of 1%. $87.50 is the last trade up 16% on the year to date
basis. on the crypto side of things, we are seeing a move lower across the board in crypto as we speak. bitcoin is down 1.5% 36,500 ethereum prices are 2,436. let's stick with the markets and bring in jon najarian. you will see him on the halftime report jon, let's talk about what you think is driving so much of the market volatility. i mentioned the nasdaq down 2% at one point three hours ago and now back to even this volatility has been a theme for the last several days. >> yeah. for all of 2022, dom, thank you very much. it is one of those things you wish sometimes for higher volatility things are boring.
the volatility the amount the markets are expected to move that's what we are talking about. it has been going up and up and up it used to take us where wie ge down to the spot vix and pop back to 20 now we see wild swings from 20 to 37 and right back down toward 20 it never gets there. right now, dom, we've got a lot of the vxx that's the short-term etn. exchange traded note that this one tracks the short-term volatility futures some people have been very accurately trading this one back and forth, dom it has moved from 19 last thursday, i think, up through 27, back down. now they are betting it makes another move to the upside.
>> if the vix and volatility is the theme and reigns supreme priva right now, is there anything to tell you through the next weeks or months or year, is there anything we have been told that the fed is doing anything with the rates and balance sheet through the course of the year >> in the vix itself and they have futures that expire in the vix, in that, dom, we have seen crazy upside speculation out to april. whether it is upside speculation that the market stays volatile or that is protection put on, your guess is as good as mine. in this etn that i described, that vxx, we're seeing that one. they are trading very, very short-term yeah, that's a short-term
futures trade, but this one, they had nailed the one a week ago. they bought the january 20 calls. they paid about 90 cents for those with the vxx was 19. it traded up toward 27 this week they took off the entire position, but now late in the day yesterday, they started layering in again another one that expires next week, dom. not for the rest of the year, i couldn't tell you. they are saying thevolatility might not be over yet. >> jon, if we have the elevated levels of volatility, what can traders and investors do with that kind of relative expensiveness in volatility in the options market is there a stretch with the stocks we talked tesla last night and apple is coming up today what can you do to help protect your profits >> a lot of people right now that are buying s&p 500 puts
because that's one of the protective measures. volatility when it is high is telling you that the people are thinking the market is continuing lower on the other hand, dom, we, pete and i, my brother and i, like to feast on the fear. when the volatility gets high, that's when i like to get back into committing capital back in the stock. i sell the options because i don't think it can maintain the high levels of volatility. since you spoke about it, dom, tesla last night was burning to the upside in the after hours. i know you know that we were through 975. they were buying upside calls. this morning, like you said, it is back down to eh the earnings, i thought, were spectacular. if apple can do that, i think we will see the volatility ebb and
the premium will start shrinking back down. a lot happening on apple tesla earnings were pretty good, dom. >> interesting on the options market jon najarian thank you. now time for the big money movers silvana henao is here with more. >> reporter: dom, we are looking at service now shares of the cloud company jumping on the first quarter earnings and better than expected results naming the chief product officer to the chief operating officer and shares the semiconductor company lam falling after the estimates fell short the company attributing that miss to the miss in december and then shares of lendingclub sliding despite strong earnings and revenue in the most recent
quarter. they issued weaker than expected guidance that first quarter would be lower than q4. silvana, thank you coming up, digging into tesla and the one thing that elon musk is excited about in the year ahead. and here are some of your other top stories of the lowe's is opening petco stores inside the warehouse. and hostess is joinings the s&p small cap 600. and it is young or rogan, not both spotify has chosen rogan they have taken down neil young's music on the platform after he called out joe rogan for spreading disinformation
i didn't know you had dahlias. they're my favorite. they just came in. thank you. i should do a marketing campaign. clover does that. you're like a mind reader. do you like it? here are the receipts from the other store. cool. thanks. nice. secure payments, the tools you need, people who can help, we do that. talk to a clover business consultant today. let's check out what is happening with futures right now. s&p implied higher by 3 points dow jones industrial average about flat the nasdaq up 30 points. that doesn't tell you the whole story. it has been way, way, way worse
at one point in the pre-market session. we recovered a lot of the losses early on sectors this week. check out what is happening there. you can see first of all the year to date basis, the worst is consumer discretionary and tech services no surprise there. again, the down side leadership has been there for sure. coming up on deck for the show why katie stockton is not hopeful for an equity market rebound anytime soon she has the technical bear case coming up. cnbc is accepting nom nominations for the disruptor 50 list go to cnbc.com/disruptors. we'll be right back.
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exchange." one of the things investors are focusing on is the pull back in the nasdaq they have been saying that for a few days and it is trending lower. you see here we are down roughly 15% from the record highs we saw. the nasdaq going through a lot of volatility in the last couple days to the down side here. you see that is what has inv investors concerned. let's look at the tech trade that are especially interesting right now because software and this particular etf that tracks it igv is now down 4% on the one-year basis negative in that span. a lot of that has come in the last couple of months here a sharp down side for technology specifically with software adobe and microsoft a big part of that story.
then tesla we saw the earning report last night. for ltesla, a notion it is trending low as of late. is there support where we could see buying interest in tesla and approaching the levels right now? that is a big question that many tesla fans have here let's get more insight of support levels in the market with other insights. katie stockton is the founding partner at strategstrategies a few weeks ago, we talked about tesla and small cap value versus growth what has changed for you technically chart wise for kyou in the last few weeks? >> it is broad based we lost participation in the stocks on the upside we have a sizeable down draft.
it shows a bit of a chink in the armor with apple and tesla both have pulled back. we are contending with this and the question out there is whether this is a pull back or start of something much worse. >> what do you think is it the start of something much worse or are people dipping their toe? you cannot have the intraday volatility for equities without some buying interest to come in and buy the sharp moves lower. who has it right in the near to medium-turn? >> i think we will see something worse. maybe not something much worse initially, but prolonged than we have been accuse ccustomed to that is equal to the 2017 and
2018 period. there are signs of exhaustion o the monthly chart. these pop up every two or three years. we have the active overbought down turns with the indices and charts you have the heavyweights with tesla and apple which are relevant this week it is really impacting the indices in a negative way. the market is very over short-term you have the over sold upturn. i think that gives way to a bounce here. tesla is not reacting favor brfavorably to earnings. >> when you look at all of the charts that you see, specifically with regard to the big consumer discretionary consumer services trade.
is there anything that stands out that could be candidates for people to put on their shopping list is tesla one of them is apple one of them if we see the down side after earnings tonight? >> i'm not recommending long positions. it is top-down oriented view i want to see more out of the charts in terms of intermediate turn arounds what we have here is a minor short turn around. you could have a position that works over the next week or two weeks that you might be disappointed with the position six weeks out from now i would always have a shopping list of names you want to add exposure to in the phases. what we find is the major indices tend to bottom together on the same day. that trickles down to the individual stock positions it is essential we time the
the s&p. that suggests beyond the near term that the phase is sustainable. if you look at crude oil and natural gas price charts, they look better than the average stock. >> all right so, the average stock. i want to get into that. tesla is one that we've talked a lot about, katie, in the past. you mentioned those levels we will show you a tesla chart the company reported better fourth quarter results it is fundamental. it is something to think about revenue up 65% year over year. auto popped 71%. elon musk warning that supply chain issues will persist in the year ahead tesla does not plan on introducing new models for 2022. they are excited about one thing. >> in terms of priority of products, i think, the most
important thing we're doing is the human robot. this, i think, has the potential to be more significant than the core business over time. >> elon musk doesn't join conference calls and giving an update on the low cost ev as well katie, these are fundamentals that traders were listening to during the call yesterday. he talks about the market that he sees and maybe not as much as others at least for the time being. the chart is at a level right now that some feel is maybe attractive do you feel the same way about some of the pull back that we've seen in tesla specifically over the course of the last three or four months from the record highs? >> you know, on the surface,
tesla is fine from the technical perspective. all of the moving averages are pointing higher. however, as referenced to the nasdaq 100, on the monthly chart, there is upside exhaustion we use the mark indicators tesla is not immune to that. the message from the signals is we could see more consolidation and range bound volatile short-term swings over the coming months. even youup to nine months. we are not expecting major upside or downside to the stock. there is support around the 900 level. that is a natural place for buyers to temperaorarily step i. you could take advantage of the bounce off the stock could go lower without reversing the up trend i give it room and give it time. >> all right so that's the tesla side of
things we've also got a big one here. we want to get your take on apple. the report to watch after the closing bell disappointing third quarter numbers. apple, after a slow start last year, seemed to really come alive during the moarket volatility specifically in the third and fourth quarters. it appeared, katie, at some point it came not just a place to play thing growth trade and tech trade, but also a safe haven trade of sorts as well is apple something that is attractive to you given the levels you are seeing and pull back you are seeing over the course of the last few weeks >> it is on apple's shoulders to get us through the bounce overcoming days with the major heavyweight in the indices it has been ex-hibiting
qualities. we have not seen the pull back it is short-term over hsold coming into earnings we see the reactions from the peers in the faang complex there is no guarantee in earnings reactions if anything, we think it is set up ahead of earnings we might use an oversold bounce or relief rally in reaction to reduce exposure for the reasons cited. >> if that is the case here, take us through before we let you go, this growth versus value dynamic in the market right now. it seems as though growth is coming out of favor. we know that every time it has done it in the past. it is a relatively short-term that gets bought back up again do you feel 2022 is still going to be about that growth over value trade or does the value trade from the pandemic low win out? >> it is funny last year, it wasn't growth versus value
it was large cap versus small cap. i wonder if it is not going to be more neutral in terms of the relative balance and relative performance. i don't think it will be overtly all about brgrowth or value this year what we tend to see during the down draft or corrective phases where the market is prone to a couple of those this year. we tend to see growth under performed. we need to mentally prepare. you get investors penalized that look more overbought and holding on to the ones that feel more oversold >> katie stockton covering everybody you can from the chart. thank you so much. anything and everything. you watch it all ahead of the opening bell let's check on the futures right now. again, we are showing signs of stability as you can see okay just in the last 15 minutes.
good morning global markets under pressure after fed chair jay powell signalled the central bank first rate hike. and tesla is pushing new models and focuses on the current line deliveries. we will dig through the quarterly numbers. and in the battle of neil young versus joe rogan spotify is siding with rogan
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