Transcripts For CNBC Closing Bell 20240713 : vimarsana.com

CNBC Closing Bell July 13, 2024

Well china for instance reporting an increase of cases and u. S. Officials warning this week will be the toughest yet as hospitals struggle to maintain and eck up and down their capacity. Coming up on todays show, blackstone is donating millions of dollars to support Health Care Workers and First Responders in new york well speak to the ceo about that and his thoughts on this volatile market. Plus, well be joined by the ed of the transports union. 59 minutes left of trade. Lets focus on the big stories we are watching nowful meg with the latest on treatments for the virus. Peter from canter fitzgerald is here with us to talk b about the volatility in the oil market in particular, but first, mike, want to get your take on todays rally and where this puts us a pretty crisp rally, cant argue with that. Where it takes us is one of the most interesting things. A oneyear chart, 26. 30ish on the s p 500. Its exactly where we closed on march 30th so you remember that was that big three day rally off the lows from march 23rd. 2630 its been a ceiling. Look at what we did today. Rushed right up to that test now what are the tests beyond that a these areas around 2700 and just above there. 2700, if you believe march 23rd is the low for this phase right now, it really fell off a cliff and became a disorderly overchute to the downside. We had a 12 down day. Thats what we probably have to get back up to to thsay this is more than a reflex bounce. I want to take a glimpse of the hoo Leadership Today since the market highs, its been a defensive outperformance is what weve seen heres the Consumer Staples and large cap techs and qqq. But this is small caps, the banks. Very wide performance but look at today and youll seen inversion of that. When the market gets more confident, when people feel like its e gotten over the downside, its most beaten up stuff that tends to do better you see the staples being underperformers. Thats to be expected when you get one of these rushes for the risky stuff thats been left behind really liked your column today. The waiting is the hardest part, tom petty and investors. It speaks to the fact that nobody has an edge here in terms of what the economy and what the virus is ultimately going to look like and therefore its hard to make a market call right essentially what the market normally does is k loobing at this huge set of leading independeicators, how economies normally act right now, we have this interplay of an epidemic and policy thats extremely hard the handicap which is why one reason, the market has seized on these sides, maybe weve seen some flattening out of the infection curves make sense to react to the upside in this way, but its possibly fair to say sum were going to get overshoots and undershoots on a daytoday basis, both directions thanks. Some glimmers of hope emerge ng the battle against the coronavirus as italy and spain have reported a slowing in death and infection rates and progress is being made on treatments as well meg with more on the response from the pharmaceutical industry meg, after another busy weekend for all of us. It was. One of f the nearest term drugs that people are really watching for is Gileads Remdesivir we got an open letter from the ceo posted on saturday night about the supply of that medicine this is a complex drug to manufacture. Theyve been able to ramp up supplies now what they say is enough for about 140,000 treatment courses available by the end of may and theyre making that available at cost. As it goes through the kliclinil trial process. They hope to get up to 500,000 treatment courses by october and more than a million by the end of the year. Potentially several million next year if required now the ceo saying quote these are intense, ongoing efforts and while they continue, we must await the data from the Clinical Trials before we know whether remdesivir is a safe and effective treatment. Were hoping for that data, the first of which in the next few weeks. We also want to tell you about some news this morning from a small Bio Tech Company with an antiapproach they say theyre going to take two anticandidates as part of this gsk, also make iing a 250 Million Investment sending the stock up today and these are the kinds of drugs coming in succession, different technologies we heard Scott Gottlieb talking about we need different approaches to start to tackle this thing and we are hoping to see these data from gill add by the end of april. They will come from china trials first and might be little confusing to decipher. Might not be super clear immediately, but well see gileads trials after that, guys, and everybody will be closely watching that. Back to you. I guess taking it as a good sign theyre ramping production even before theyre talking about the efficacy what about hydroxychloroquine, which has become politically charged because the president talks b about it, but is there any more data coming out on that and how widespread its being used in hot zones like new york . Well, by all accounts, its being used very widely we dont yet have good Clinical Trial data to tell us how well its working and so what were waiting for. We know the new york state trial of that started in march hoping to see that data i think Governor Cuomo was talking about it today over the next few weeks or months the current data that exists are flawed and theyre what dr. Fauci calls anecdotes, not data, so we really need those Clinical Trial results to know if the drug really does work. Meg, thank you very much. Talk to you again soon im sure. Oil falling today despite earlier comments from the ceo of Russian Sovereign Wealth Fund r rdif hinting an oil deal between russia and saudi arabia is close. This comes on the heels of oil posting its best week on record and ahead of potential meeting between opec and its allies on thursday for more, lets bring in Global Markets strategist and head of cross assets strategy and canter fitzgerald good to see you. Thanks for being here. Obviously, huge rally in oil hasnt really given back much of it rallied up to 29 gi give. Well you know ive taken a bit more of a cynical nuanced view of the dynamic in the oil market right now and im not that convinced this is an all out fistfight between saudi arabia and russia. I think it might be a little bit more of a veiled attempt by both of them to take a swipe at usenp while its been shut out of the Capital Markets. Most people, but im not sure that its true so that implies not muc upside of crude from here. Obviously demand is down and looks like it will stay that way for a while so where does that bring you in terms of a broader Investment Strategy for the infrastructure and other parts of the market. I think on thursday we get some sort of a that makes it look like theres cooperation. At prices this low, doesnt really matter that much because even the permanent producers have break evens in the low 40s. I think unfortunately, the next bit of pain now will come from the defaults that are likely to arise especially because now Capital Markets are closed and for that reason, even though obviously valuations and sector are depressed, i think its time to sort of wait and see relative to who the survivors are in the space and we need to fix spots after the damage has been done in full. Are you not convinced President Trump can intervene in a bigger way he said hes spoken to them, they can make a deal, met with the executives hes clearly focused on this issue. Hi, sara, nice to see you i dont know really think that he has perhaps as much influence as one might think in this situation remember at g20 meeting no that long ago, quite a bit of comradery between the saw u dis and russians the russians are well positioned to withstand this. Yes, it does hurt them in the shortterm, yes, it does hurt the saudis in the shortterm, but i think this is a bit of a ronger gain for them than it is for us and i think their interest in fact are quite aligned relative to what its going to do to u. S. Enp companies unfortunately. Peter, nice to have you thank you. Thank you after the break, jamie dimon out with his annual shareholder let eter with a fresh warning about the impact of the pandemic and later, blackstones ceo joins us for a first on b cnbc interview, his take on the market volatility, plus, their big move announced today in new york thats coming up at t has connected us every day for over 100 years. 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You see a 6 rally for the dow just under that for the s p and the nasdaq lets take a look a at individual Market Movers spotify get iting hit with a downgrade from Raymond James on quarantine concerns. Firm says concert delays and extended time indoors could be a risk to spotify, adding this could be a use uer shift to amazon music instead of smart phone presumably and wayfair says business is booming as people redecorate while staying indoors. The store announcing when it entered march, Gross Revenue growth was just under 20 but by the end of the month, growth had more than doubled. Were getting breaking news out of the u. K sue. Thank you very much heres whats happening, everyone we now know that the Prime Minister, Boris Johnson, who came down with coronavirus last week, has now, his condition has worsened he has been taken into intensive care at this point this is from 10 downing street over the course of this afternoon, the condition of the Prime Minister worsened. On the advice of his medical team, he has been moved to the intensive care unit. Hes asked dominic rob, the first secretary of state, to deputize him where necessary they say basically, mr. Rob will be taking charge of the government at this point interestingly enough, this morning, mr. Rob was asked that very question. Whether or not he was ready to take over the government he said the Prime Minister is fine and is fully in charge. Obviously that has change ed ovr the past couple of hours with the Prime Ministers condition worsening and for all intents and purposes, dominic rob is now u in charge in the u. K if we get further updates, sara, well give them to you, but right now, dominic rob is in charge in the u. K. Back to you. Sue herera, of course we pray for the people of the u. K. And for the Prime Minister on that sad development. Just want to also draw your attention to the prime pound which got hit on this news obviously a shocking headline which raises the uncertainty factor for the u. K the pound versus the dollar, you can see the drop there as sue was coming out there that Boris Johnson will be admitted to intensive care and the foreign secretary will be leading in the interim. Meantime, jamie dimon publishing his annual letter this morning which almost exclusively addressed the Coronavirus Impact on that bank dimon predicting a bad recession and elements of financial strain like e he kau saw in the 2008 final crisis in his letter, he applauded the feds overwhelming actions which quote dramatically reduced Financial Stress he was confident the bank remained strong. Would not need relief and would continue to lend to customers. Interestingly, he did spell out an adverse scenario. Gdp growth of 35 . Unemployment of 14 still in the Fourth Quarter under which the banks board would likely consider suspending its dividend and actually that dividend of banks was a topic i brought up earlier with janet yellen this morning. I would be in favor of asking the banks to suspend dividends and stock buybacks they worry that it will make them look as though theyre vulnerable and that a reason that they have stopped dividends. That they see that they have difficulties, but if the regulators ask them to do that on the grounds that we need a Banking System thats able to meet the credit needs of the economy and we dont know how severe or long lasting this pandemic will be, i think thats a different situation. Clearly, yellens in favor of the fed telling the banks to suspend their dividends. Its obviously a sensitive topic because we had Morgan Stanleys keon this program, and a number of of citi, all saying you know, theyre not going to suspend their dividends. Its obviously a difficult topic for them sure. And i cant, what would happen to these bank stocks if they did have to do Something Like that . Its not surprising that j. P. Morguean would have been selfadministered a tougher stress test than in fact the regulators do. In that scenario, if things stay worse than expecteded, then it has to be on the table really the to preserve capital. I also wonder if banks would look for a collective way to do it if it came down to that so it wouldnt seem as if one institution was worse off than others and having to do that but i think the dividend question is probably still a little ways off before we really know the depth and duration of what were dealing with. Too bad wilfreds not here. He would have loved to weigh in on this topic. Hell be back tomorrow and im sure well still be talking about Bank Dividends take a look at stocks. The dows up 1226 points, 5. 5 for the s p. Every sector now if tn the gree and bank are the best performers retails doing well today as well after the break, the lockdown has hit brick and Mortar Retailers hard were going to discuss the fallout with one real estate mogul who owns somof te he most wellknown properties in california thats next. Yes. The first word to any adventure. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. I know thatg your true colors every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your Retirement Plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. E commerce Warehouse Companies seeing a boost today on the back of a surge in demand Frank Holland has this story about the delivery centric economy. Shares up 6. 5 . During a meeting today, the leader saying lease signings are up u 16 in march. That rise largely sparked by online buying during the pandemic also shortterm leasing is up 44 and the ceo said the shortterm surge in demand is real for e commerce. Blackstone along with duke realty just added it expects inventory levels to rise at u. S. Stores as much as 10 this year also increasing demand back to you. Maybe they can haask steve about it next hour thank you. Some online sales are seeing a buzz more retailers are announcinging furloughs today including rh and michael kors company, Capri Holdings workers from these two join the hundreds of thousands of other retail employees that have been furloughed from Companies Like macys and ross stores as these retailers grapple with the effects of the coronavirus pandemic joining us is rick kcaruso, a california based Real Estate Company that owns and manages a number of Shopping Center Retail Properties like a grove in los angeles. Rick, its good to see you thank you for joining us thank you, sara you know we announce these furloughs every day. Its a devastating number. How do you think about these jobs are are they lost or will they come back i hope they come back i think some are going to be lost the retail environment is tough right now. I think the important thing to think about is that the biggest threat to brick and Mortar Retail is really the current version of themselves. Many have to evolve. Have to change because the consumer is going the change this crisis i believe is going to change consumer culture their expectations what they want from retailers. In a really significant way, so theres going to be winners and theres going to be losers theyre going to feel more local, more personalized and have a better Value Proposition and as many out there that were doing that before this crisis began and theyll continue to do it this changed in c

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