Transcripts For CNBC Squawk Box 20240712 : vimarsana.com

CNBC Squawk Box July 12, 2024

7. 44 . As you noted before the yield curve. Steepening and a rally in the financials you mentioned that june 10 was the high that was the day where the markets had their maximum enthusiasm about the strength of the recovery and how fast it would be that was the peak where the come back of value and cyclical sectors. That seems to be the dynamic and the push for which stocks were preferred and the market seven days in a row of records is not to be dismissed guys the intraday record high in this session and well have to see if this continues . Yesterdays high is around 3,500. Coming up, well talk about the abrupt halt to the sports world. We ha we have fed president s and the interim ceo of tiktok. What a story it has been and a soap opera all week long we are learning more in the details in the sale of tiktok after walmart confirmed it has teamed up with microsoft sources tell us that walmart ineshlly wanted to be the lead buyer together with what was alphabet and soft bank coo and ran wework walmart wanted to be the exclusive e commerce and payments provider but the government wanted the lead buyer to be a tech company because that would be a better rational for the security a bid confirmed yesterday. In a statement, walmart said it was confident that they would meet expectations with tiktok users and concerns of u. S. Regulators thats the back drop on regulators of the day. Well talk to theinterim ceo Vanessa Pappas after an abrupt step down of the ceo. We have a lot of questions this is a business story, a tech story, geopolitical story. There are so many elements to it julia will be joining us with that as well anybody who says they are in the bidding for tiktok are in the rating microsoft already rallying for this bid walmart is an interesting one as they move from a transactionbased model to more subscriptionbased model going after amazon prime in a subscription model, a captive audience is worth something and what more captive than the audience on tiktok. Bytedance already does this in china so could create competition and change the dynamic of the conversation you could argue that walmart there for becomes a more meaningful competitor in the space when it comes to the search. It may create its own set of nightmares or challenges because the more walmart gets into that space. The more it ends up competing with the Small Businesses we get on our platform and seen around the debate with amazon fascinating to watch in the transaction over the next several days possibly could happen on monday. We should note oracle is still out there as a stocking horse. I dont know if there is a stocking horse bidder but we keep saying they are the lead bidders. Other views that oracle is a lead bidder. At the beginning of this, why microsoft wants or needs a partner. Financial, not an issue. Technology, not an issue is there a sense the leadership of microsoft is doing this because this Company Needs some kind of rescue thats a great question the answer is, at least initially. The element of this for microsoft, when they first started talking, they werent talking about buying the company. Talking about going from tiktok using google cloud as the host and using microsoft azure which would have made tiktok one of the biggest clients overnight and put microsoft in the video Consumer Base that was the strategy part of it. Aws and google plot have taken the video piece of the world they could use tiktok. Initially, there was an anxiety in large part because of the Politics Around it and all of the attention to not loose focus on enterprise. Thats where we started when the Trump Administration stepped in and talks went from being a minor interest to control interest and thats how this all seemed to happen lets get an update on the devastation from hurricane laura with jay gray in louisiana reporter it is overwhelming here take a look where we are you can see the sheer and twisted metal. Part of what was a gas station you see an empty spot. This pump pulled from the ground and tossed to somewhere. We havent been able to find it at this point. Evidence of how powerful this storm was. Seeing this play out across the region communities are shattered by the wind a real concern as they work through this rubble, that number could go up. Talking about those where they are trying to clean up this area they are used to the resolve will be very difficult there will be spots where it will be years before they come back thank you breaking overnight, the Prime Minister abe with a report he is resigning for Health Reasons he suffers from a chronic disease that forced him to step down in 2007 following a flare up abe said he was not confident he would be able to make decisions confidently with his Health Conditions coming up, well tell you what President Trump said about the progress of the Vaccine Development and get reaction from dr. Scott gottlieb. And looking to shares of ulta that have increased earnings doubled more than expected that stock is popping at 14. 5 you are watching squawk box on cnbc o pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. Coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions. Touchdown only mahomes. Expect anything different . The big events are back and xfinity is your home for the return of live sports. We are delivering lifesaving therapies and will produce a vaccine before the end of the year or maybe even sooner we will defeat the virus and the pandemic and emerge stronger than ever before that was President Trump last night at the Republican National Convention Joining us with more, dr. Scott gottlieb, former fda commissioner and on the board of pfizer and illumina lets fact check this as we do with all speeches these days will we have a vaccine before the end of the year . The question is, right, will we have it approved. Probably sometime in october is likely if they are effective, you could have a vaccine available, i believe under an emergency use authorization for select populations before the end of the year you could see the fda authorize use for lets say Frontline Health care workers or nursing homeworkers. In terms of having a vaccine license. Most people can go get it as accessible that is a 2021 event that is a First Quarter of 2021. That is probably the case where it is effective, you could get them licensed for use in the First Quarter of 2021. You take a look at the time line of authorizations are you concerned that this process of the fda is getting politicized. Is that even the possibility that white house puts pressure on the fda to speed it up. The timing of the abbott labs test given on wednesday. The day before President Trump announced the purchase of a massive amount of tests of the Republican Convention during his keynote . Well have to look back after this event and make sure we have the right guidance and guidelines around that process this is the first time weve used this process at the time of scale. Weve seen hundreds under the market as they have preparedness act to have a lower standard to get a promising treatment to patients more quickly that has been used in that way. It is a lower standard not that it is safe and effective but demonstrated to be safe we need to make sure we have proper guidelines around it. That process doesnt go through the same status. It is important the fda get in place a good framework around this congress will come back and change this process and make sure we have tighter controls over how these things go forward. Not to say we havent been appropriate to date but it is less transparent and rigorous, if you will, than a traditional review process are you concerned about these standards. The thinking that this rapid test would open the door to the reopening whether it be restaurants, concerts. We saw the reaction in stocks. We are saying these tests were put through a less rigorous process. Is your optimism surrounding what these tests could do for the economy, is that dampedened in any way i dont think so. If you look at the validation work abbott did, it is like a full clearance, if you will, by the fda. They put it through a pretty rigorous process here. This affords them more certain sis of getting it reviewed and on the market than putting it through a standard 5 k process in terms of the validation would have done. Theyll come back with issue im confident that has come through in the process im confident a company like abbott does the full evaluation work one of the things we have not heard yet. Maybe youll have insider knowledge about this are we going to see the airlines decide to buy lots of these abbott tests and every time you go to the airport, you would use it or sports stadiums or places where life hasnt been able to go on like you wanted it to. I dont know if that can happen, whether cost makes sense showing up at the airport, you already have to be there two or three hours before, maybe showing up 30 minutes before and would people subject themselves to these tests i imagine you could hire doctors and nurses and the like to conduct these, no . There might not be a supply to procure them there are other manufacturers that could come on the scene as well i expect to see more behind it this allows the testing to get into a different kind of setting and move it into the work place. Youll see tests marketed directly to consumers to test yourself at home theyve said as long as the tests are reliable and accurate and they would have to report those as a way to keep the product off the market saying the product cant come to the market the ability to test yourself at home and get a positive result, there has to be some reporting of that result i assume they could do that electronically if the results were blue toothed to a phone, you could force to have everybody press a button to say you would report that back we used to talk about this back in march and april, we talked about how we thought there would be apps, tracing apps. That hasnt really happened. You are right about the technology it is doable it is not interpretable until you flash your phone and get the answer there are work arounds here. Those costs go from a 5 test to a 15 test you might first see some manufacturers come to the market in the technologies. That will get more testing into the hands of the consumer which isnt a bad thing. We want as many people to get tested as possible to get a result to know that they are positive and take the proper steps. Dr. Gottlieb, thank you as always more coming up this morning. Stocks to watch. Well tell you how the boom in face coverings is helping one companys bottom line. And a look at the biggest premarket movers in the s p 500. More after this. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. That helps you master your backhand. Then you should be able to get a bank account that helps you master your budget. Virtual wallet® for Digital Banking from pnc. Its time to get more from your bank. Virtual wallet® for Digital Banking from pnc. Its the simple joy of washing your hands,. Without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. The volatility. The ambiguity. The moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Retailer gaps total sales fell about 18 from a year ago struggling with the closure of stores the company pivoted early to making face masks. That move is paying off. They brought in 130 million in face mask sales to individuals and bulk to stores and governments. Dom chu with highlights 50 of cfos saytechnology will be the Fastest Growing sector as they continue to develop work from home and e commerce hoping e commerce will get a boost. Covid19 will negatively or very negatively impact. Some say it is the same or easier to find talent for their company. You are seeing developing themes there. When it comes to personnel decisions, more than half of global cfos say they expect their companys head count to decrease maybe not good news there on the employment front 20 say they expect an increase. Remote working has become a new normal in the pandemic 35 say half to three quarters of the work force work from home will es than a quarter believe theyll see the same level of that remote working. This notion you could see positivity and negative i havity overall, it comes down to a prevailing theme for companies and businesses around the world. Thank you coming up, stocks are pointed for more gains a day after fed chair powell reported Interest Rates are here to stay and bring you interviews from the cleveland fed president. And interim ceo of tiktok and well look at yesterdays s p 500s winners and losers flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Workday makes software used for Financial Management and human resources. Raising guidance for the current fiscal year. Fernandez promoted to coceo here is more last night from mad money. Squoo what weve learned through the pandemic that our applications are Mission Critical we do have visibility into what the rest of the year looks like. Workday shares are up 47 this follows a string of earnings for the company i keep saying it is the strongest part of the strongest part of the strongest part of the market no signs that the appetite is abating just yet for those names. A check on the market where well push into record territory. Due to be up about 10 points the dow up and nasdaq would be the underperformer set the scene with a threeyear chart. It captures several times in the few hundred months that was not long before you did roll over again. Less severe and more mild after your record and there was a little correction in the rolling pattern. This is the covid crash. Right here, look at that angle looking very steep and stretched in the short term. Well see if that matters and comes into play. How about big movers here . Apple and tesla. Relative to nasdaq that is up 12 . That has done even better. Lets talk more about whether that makes sense that strategy great to talk to you this morning. If we could start with the stock split dynamic, one of the more Practical Applications as opposed to being psychological or cosmetic, it makes options more attractive. How does that filter through into the trading dynamics and what has it meant for the overall market at this point good morning. Yeah, it is absolutely true. I was looking at tesla yesterday and one contract was 13,000 a retailer, b that is nothing to sneeze at. The stock is going to make that less expensive we already see fractional shares trading in names like tesla and apple and this will have the same impact in options. Since march, one impact weve seen take off is the ex ub rans in these names that has pretty much up ended in these names as well as these momentum names you see retail side buying a lot. What do you take away from that . Is it just a new kind of energy we have to adapt to and trade against . There is a certain buyer beware here and an upside. One thing you look at carefully volatile startup. When stocks go up, volatility should go down there should be a relationship that holds through this has changed in names like tesla. Over the last two years it has this relationship as tesla goes up, option prices go up more that is impacting the way hedging works for dealers. You can see greater swings up during expirations as people buy more there is an accelerating. Pretty rare to have the market be at record highs and vo the index that much higher clearly the firm bidding out there maybe around the election. What do you think that means for the direction of markets you know, it is interesting in the short term that has come in a lot there is a little concern, the longer termite be a little overpriced where weve seen that pretty big that time frame will capture when the vaccine comes out i think the hedges have shown in and around the election that concern stays there. A lot of people are very concerned about the mechanics of the election people are saying im not just worried about who p will become president but worried about the path to get there. Mail in or getting in line in the middle of a pandemic we dont know what that will look like. We think that the longer terms should be will be lower with positive vaccine news that will make it Something Likely well see that for the markets to allow thank you very much for your time coming up, well talk to the u. S. Tennis association ceo about how restartup will start amid covid dont miss the interview with Patrick Harker at 8 30 a. M. Eastern time well b

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