Transcripts For CNBC Squawk Box 20240712 : vimarsana.com

CNBC Squawk Box July 12, 2024

Other. Yesterday, down over 200 adding that, you are down more than 1,000 points of decline in early session right now. Well see what the market does as we get close tore reopening and of course to the closing bell today s p 500 down 33 and nasdaq down 101. The central bank indicated it would keep Interest Rates near zero projected that the u. S. Economy will shrink by 6. 5 in 2020. They do see a gain they are expected by 5 in 2021 followed by 3. 5 gain in 2022 and will continue increasing Bond Holdings and Mortgage Backed securities at 40 billion a month. Take a look at the 10year note, yield now sitting at 0. 698 . Crude oil prices have also come down a little too. Wti is down about 3 this morning. Ticking at 38. 38 a lot of this is because of what the fed is you no saying you are really expecting some tough economic sledding. The news out of 12, 13 states probably not great either. I think it would be hard for me to sell right now. You wait around. We dont invest. You would have wished you had done it three days ago thats the hard thing that makes me think, i dont know you get all the way back to 3,200, which you would have killed for now we are here. It is not gone weve got people out and about whichever example of people going out you want to talk about. People talking about demonstrations and beaches and opening up for whatever reason, there is a chance for transmission now, isnt there . Is this the second wave or the first wave in arizona, they didnt go through the first wave did you hear meg terrell talking about how in places like arizona and texas, it is really hot. More than 100 degrees but people are inside where it is more transmissible because you are recirculating the air. If you are outside, that is healthier and less likely to transmit if close quarters. Not necessarily in the house but the mall or inside dining area then it is more concerning if you dont have the outside air right weve been talking about four years to zero. The fed says it. They didnt even say four years to zero. They just said for an extended period if they had said to zero, the market would have panicked too andrew, im sorry. The only thing i was going to add, we saw the starbucks numbers yesterday and what the fed had to do. I was on the phone with a number of Hedge Fund Managers there is a lot of profit making right now. It is hard to extrapolate out the bad news in the market but there is a few, by the way among a lot of professionals that some of this market was run up by retail we had that conversation yesterday and whether you think the professionals were sort of plague along and now starting to get out. I think there is something in that vein that is happening and part is trying to understand too. If you are one of these hedge funds and looking to be down 40 . You can say, forget it i can take that off the table. Your person has always been all these stats. Go back and add up the total dow point gains the week before and the week before that we were talking about that it is six days and peter is listening to the show all the time over the six days where we saw the dow just skyrocketed i was trying to figure out, 1,100 would be giving back we do talk about being up another 450, 500 just the nature of the News Business volatility is here. Remember, there used to be days where before this happened, we were up. Not talking about the s p futures but the dow. Growing up and walking to school up hill both ways you are sick of my old stories Joe Granville crashed the market it was up 27 points with the most bearish comments and the dow dropped 27 points and we didnt know that wed ever come back from that than he started dressing up in a pharoh outfit and he was the greatest ever. Looking at other areas getting hard hit a airlines with big moves there. We noticed that in the overall averages, 8 cruise stocks, which had been hard to understand the big rally there. Some of the speculations we were talking about as those came back hotel stocks does this look like fed or second wave worries. I dont know there is marriott and others those profit taking stocks went up. When bank rup stocks went from one to seven then you really start. It is probably zero. Thats the attitude of some people you tell them they are stupid but they sell out from five. They say why am i stupid take a look at some of the biggest drags on the dow boeing accounting on 80 points of the selloff boeing, which also has run up an awful lot. Up like 55 on the week. Also would be affected if we are not totally out of the woods on the virus. Andrew some corporate stories to tell but as well this one surprising the market shares of grubhub jumping after plans to merge with European Food company, just eat takeaway. They werent sure how uber would support. Their offer valued grubhub at just under 70 a share the european stock fell on that news lowering the total offer to about 65. 17 per grubhub share an interesting transaction i dont want to say it came out of nowhere there had been an expectation that uber or one of the u. S. Players would come in and do this clearly that is not happening. Interesting that antitrust was on peoples mind there was a view that maybe in the pandemic and the need for these services that maybe antitrust would look the other way in some of these types of issues unique moment in time and maybe also a sign that Elizabeth Warren and others who tried put forth a bill it didnt get approve, to effectively end or postpone all transactions during the pandemic because of antitrust issues being one element of it. Pretty interesting for those in the deal world this morning. The other thing on that, remember when we were talking about some of those issues how uber eats even with all of this, with the pandemic and people using it so much more is still not profitable you kind of look at those issues and anybody who looks at it and says, you have to have these numbers. All trying to cut into the customer until there is consolidation, a lot of people have thought it is just not going to be profitable. The question now is what happens to the doordash doordae world. The interest in grubhub, uber thinks it needs to do something. This is still a money losing enterprise part of the reason is maybe there is too much competition, which raises the competition issue. A little thing there we have a lot more coming up on squawk box ahead exclusive look at changes being made to stadiums as america looks to bring back live sports. Take a look at u. S. Equity futures right now. The dow off 500 points s p down about 50 points, nasdaq down 150 points after some sober lbeig bk tethe Federal Reserve. Wel rhtacafr is hrough multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back as sports return, stadiums will look a lot different an exclusive look at what fans can expect barely six months ago, miamis Hard Rock Stadium was rolling out the carpet for a super bowl crowd of over 65,000. Now trying to look at what stadiums will look like post covid. Already thinking of how to drop capacity to 15,000 fans. Every venue in the country is having these conversations right now. We are talking to baseball owners, football, basketball owners and their Operation Staff literally every day. Leading the Global Sports studio at architecture firm. Well see many changes. Creating virtual designs showing how seating could be modifies creating socially distance boxes resulting in only about 18 Stadium Capacity and then more socially relaxed standards as things change. We hope to have the threshold to start from and then move to different gradations also looking to expand more social viewing areas you might stand in a railing to watch the game or be in a bar environment. Fans ordering and purchasing on apps from their seats and getting an alert when ready. Ticket entry will also be contact free we put ticket scanning entry and that was a cost of about 1. 5 million costs will vary as you run the gamut of facilities from pro arenas, colleges and even high schools. There will be sizeable investments across every sports franchise and venue. Thank you for that report. As the post covid world is being reimagined, some states are seeing a spike in cases. For more on that and a bunch of other questions, dr. Scott gottlieb, former fda and serves on the board of illumina and pfizer in the past couple of days where weve seen additional spikes put it in context for us look, i think we should be concerned but when you look at arizona, texas, south carolina, North Carolina those are the big outbreaks. Florida seems to be going up it is not a second wave. They never really got rid of the first wave look at texas and arizona, they really werent that hard hit in february and march now we are seeing it start back up as they reopen. The cases are certainly concerning but they havent been able to isolate the source of infection. In some states, it is related to facility or a particular prison or nursing home. In texas and arizona, it seems to be more purr vasive they havent done the Contact Tracing to find the source they havent been able to take effective public action yet. Doctor, can you explain this, a lot of folks trying to figure it out looking at arizona that is clearly having spread but look at georgia, which was really the first to reopen not having spread and in l. A. , which was one of the first places to close down and now all of a sudden, there is more spread happening there. How do you explain those differences . Look, how do you explain the fact that new york had a horrible especialpidemic . The infection gets to certainly environments once it takes hold, it becomes hard to extinguish georgia isnt out of the woods this isnt the type of virus that could flair any time. If it gets into the right setting, it could start to propagate. You look at georgia and arizona right now. In phoenix, it is 110 degrees, houston is about 95 degrees. Whatever seasonal benefit you you are going to get, they are probably tipping over right now. Many people are in doors due to the heat that might explain the spread now in some of the hot states. I gather concern about the supply of remdesivir i wanted you to speak to that in terms of access and number of people who may need it and when we have run out of the initial supply thats been created it has been dependent on the cases we have this summer. The supply should last us through the next couple of months assuming the hospitalization rates dont go up from here it is a drug likely to be preserved for the signs and symptoms and comorbidity it will likely be given to patients that come in that present more sick. Heading into the fall, well have more supply so that if we have another epidemic on the scale of what we had during the first go around, there should be enough for the more severely hospitalized patients. It is touch and go gillate has brought out new manufacturers and been able to surpresident those the same thing goes to the they are pew tick antibodies. Those will come on to the market in the fall. Both companies will likely only supply about 100,000 doses a month for treatment. Theyll have more for prevention most will likely go for treatment. Theyll only have about 100,000 per treatment. That should be enough for severely hospitalized patients and not likely for those who present with coronavirus well bring down the death rate with a second wave weve learned how to treat more effectively. It will not affect how many people ultimately get sick and hospitalized with it doctor, i got an email last night from a ceo who asked me to ask you a question, which is they are looking at various testing different types of tests to give their employees including the abbot test and some of the pcr tests that take longer what are you recommending. If you are running a company in this case, it is a factory and warehouses, thousands of employees, how would you be going about this there is a number of apps that came on the market. I work with one called collective health. Thats just the one i know because i work with it that gives elaborate questionnaires if they fail any component or think they might have been in contact, theyll send them for testing. It is hard for a lot of businesses to bring testing on site there are businesses that will do that for you like cvs that will bring avit site and do testing on site. Being able to refer or send tests home a lot more will come on to the market where you can get a kit in the house, take a selfswab or sample and mail it in that will greatly facilitate empliors to get tests to employees if they have an outbreak in the office or fail a test you wake up, go into the app and fill it out. Answer all the questions if you fail any component of that, your reflex of testing if you dont, you dont come into work that day they screen that before they even come into the office. Isnt that going to take people out of the work force, not to say that they shouldnt but if it is all going be done by mail or fedex i would imagine that whole process could be several days or longer people have taken tests who still havent gotten results until a week later the turn around is Getting Better im talking at least 24 to 48 hours. People will be instructed to work from home youll have to see what the prevalence is. We are assuming it wont be that high going into the fall people will be asked to work from home while they are awaiting results from a test the other way is to bring it on site, collect examples and run them there a lot of businesses dont want to mess around with testing. They dont want to have Sample Collection and handle the samples. The test at home paradigm to offset the testing and not have to take it on themselves dr. Scott gottlieb, thank you. Always appreciate and look forward to seeing you again soon thanks becky. Andrew, i want to take a look at the dow over the last month. We were talking about the big moves weve seen we are taking a look at what happened it has made a massive move over the last six trading sessions where it added up so much that was a gain of 2,189 points. If you look at the last three sessions, yet down 282, the day before, down 300 this morning more than 500 that is more than 1,100 decline. Looking at the last month, all of that has added up to some still extreme gains youve been watching in this market. One day where the dow was up 1,000 points i thought wow, that was a massive move biggest move since sometime in may. With err getting used to some of these big, big swings. Down indicated down by 1,600 points amazon Second Company this week to make an announcement about facial recognition details after this as we head to the break, lets look at Retail Stocks getting hit hard in todays selloff. Squawk box will be right back. Usaa was made for right now. And right now, is a time for action. So, for a second time were giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus discover all the ways were helping members music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Welcome back amazon said it is halting Law Enforcement use of facial Recognition Software for one year said that it might give Congress Time to implement appropriate rules and it might help if requested. Researchers and activists have been sounding the alarm about racism and gender bias in the software interesting to see, you know, i wouldnt bet odds on congress coming up with legislation in the next year to deal with this. It will be interesting to see what amazon does if there is no legislation after that coming up yeah, this is i guess, as we pointed out yesterday. It is mute well all be Wearing Masks for the next 50 years anyway unless you got really detailed crows feet around your eyes. Thats all you have to work with the other thing about this, this is going to be this is an economic issue for amazon unlike ibm who this was a very small part of their business not huge for amazon but it is significant and meaningful different because amazon has taken a much more not aggressive approach but said they want to be aligned with u. S. Military and want to be aligned with the police in the United States in a way that so many other Silicon Valley companies have tried to step away intheir own way it is interesting to see them take this step its probably why they are saying theyre take a year rather than saying we are to the going to do it after that. They are letting congress see if they come up with anything that doesnt mean that this is going to stop. That just means the Chinese Companies will probably push further and further ahead. Theyve already gotten a lead. They take so many faces there. They have a massive data base to work with. The bigger data base, the smarter the ai gets with recognition because it is able to do more and more pattern recognition. More after the break on a lot. More on the pull back we are seeing in stocks talking about a potential catalyst from the fed to profit taking and many other things well find some reason to skplan it we head to break and look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you c

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