And the state of the apartment rental market in new york city. Thursday, september 10, 2020 Worldwide Exchange on cnbc good morning, good afternoon, good evening wherever you are watching it is only thursday but feels like we already lived more than a week in the markets. Down one day, up in the next futures are in the red dow futures down nasdaq down 85 points right now. The nasdaq did bounce back yesterday. Up nearly 3 for its best day since april. 85 nasdaq 100 stocks finished higher on wednesday. Le led by gains in zoom and tesla. Tesla coming off its worst trading day ever those stocks fractionally down around the world, asia mostly higher after a rough day there european markets are just getting started. Julianna tatelbaum is standing by with more and some headlines. Good morning brian, good morning it looked like we were in for a positive session at the start of trade today but things have turned negative. We are looking at red across the board in europe. Yesterday, we did see a rebound as the stoxx 600 jumped yesterday reflecting broadbased, strong gains. A little retreat youve got the ftse 100 leading losses the dax down 0. 1 . The big event, the European Central bank meeting to get under way in a few hours no policy change expected at the meeting. It would be interesting to see how the central bank talks about the euro strength. Higher very sustain the dollar by 0. 25 around the 1. 18 mark. The topic here and the economic trajectory tune in for that meeting where european investors are watching today. Well bring you those headlines to us. Thank you. Back home, jp morgan chase, cracking down on employees who violated terms of coronavirus aid meant for Small Business frank has that and other headlines as well. Jpmorgan chase fired employees who allegedly pocketed funds meant to help in the covit crisis some employees offered grants up to 10,000 for businesses. Separate from the ppp which has seen its own issues. Simon mall owners are close to finalizing a 800 million deal to rescue jcpenney from bankruptcy which would save jobs and stores wells fargo has agreed to give them credit. Seeking to get approval from a judge early next month the number of apartments in manhattan nearly tripled as many flee the city and prices collapses. More than 15,000 empty rentals in august, up from 5,600 a year ago. The most available since they started keeping track. I know a lot of people that have left new york city and tell me they are never coming back. Maybe theyll change their mind. Tough times for the city your next guest has a rather interesting and different strategy than most we bring on he uses a concentrated portfolio of just 15 to 20 companies and has some good ideas where to make money right now joining us now, the ceo of cic wealth appreciate you coming on Worldwide Exchange. Because you use that smaller portfolio, have you been whacked by the tech volatility we havent. We actually dont have a large concentration in tech. We have a handful, apple and intel in our portfolio that weve been longterm holders of. Weve seen a move in apple recently but it has been such a good run that really, we are not worried about it we are showing intels graphic on the screen. I feel like thats probably not an accident. Is intel one of your Core Holdings it has been for several years. We focus on companies that we think have a durable competitive advantage and have a consistent track record of delivering results to Share Holders yes, theyve had problems recently but we are still longterm holders of that company and think the future looks bright for them. Hasnt had the best of years, how long do you give intel to turn it around and hold your average position our favorite holding time is forever. That doesnt mean well hold it forever. We are seeing the newest chips we are in it for the long run we focus on cash flow and the ability to generate earnings they continue to do that you also like disney. An Interesting Company when you look at the market cap, it is right around netflix you can say, it is wildly overvalued or with revenues much higher than netflix is wildly undervalued. We do view it as the latter im a believer usually in the extremes, somewhere in the middle is probably the truth we look at dez any as a company wed rather own over netflix there is a few streaming services out there that are striving if you are going to compare netflix and disney as competitors and put valuations that are similar in the two companies, then you are getting the theme parks and the movie studio aspect for free thats how we look at it i guess at the time of a pandemic, you might think you want to get the movie studio and theme parks for free given the current environment. There is a discount because of how people are short sighted looking at the future . They are giving us an opportunity to own disney now. As you have a longer view and the paendemic hopefully comes t an end, maybe well see more of a true valuation for the business that will separate disney from netflix and other streaming services. What is your latest exciting new buy. Who have you recently fallen in love with . A good question weve had difficulty finding companies we could fall in love with forever focusing on trying to find under valued securities and frankly, that has been difficult to do. Okay. Is there any you view as undervalued . There has to be one or two out there . Okay. So, yes the banks some of the banks, we have in our portfolio. It is hard to love banks right now. But the banks like u. S. Bank, dare i say wells fargo, which seems to be like a lightening rod. We look at those as wildly undervalued. We look at those as great generators of free cash through stock buy backs and Dividend Payments if you are willing to have a long view, you might consider buying some of the banks but be ready for a little run, low earnings and disappointing results as Interest Rates are where they are right now interesting, we are supposed to buy low there is a guy named Warren Buffett who has done well with that hes recently sold wells fargo maybe you are on the other side of that. Thank you. Thank you too we are just getting started. Why shares of Restoration Hardware are surging what the ceo is saying about the latest outlook President Trump reportedly planning to step in on the latest round of stimulus talks and believe it or not, football kicks off tonight hard to believe but true can the league last the entire season well get a live report on what is expected. Mip in a busy hour as Worldwide Exchange rolls on after this i keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Block buster results for the company known as Restoration Hardware frank is back with the details starting with rh. Shares jumping 14 after reporting better than expected earnings the company said total demand rose 16 rh is not providing guidance citing the pandemic but says Business Trends continue to build. The ceo of rh will be on mad money tonight. Boeing facing an independence probe over a deal with nasa. The agreement comes as federal prosecutors continue a criminal investigation of whether a former nasa official miss guided boeing Kansas City Southern has rejected a takeover offer. Valuing Kansas City Southern 2,000 per share he everything is for sale for a price. On deck, a new chapter in the saga which is tiktok and the desperate bid to avoid a sale or a shutdown announcer todays big number, 1. 66 billion. Thats how much apples market cap has increased since tim cook took over as ceo nine years ago august shares are soared under cooks leadership my name is joe. Im a sustainability science researcher at amazon. Climate change is the fight of our generation. The biggest obstacle right now is that were running out of time. Amazon now has a goal to be net zero carbon by 2040. We dont really know exactly how we are going to get there. Its going to be pretty hard. But one way or another were going to reduce our Carbon Footprint to net zero. I want my son to know that i tried my hardest to make things better for his generation. To deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Welcome back we are seeing futures in the red but not by a lot the number to watch is nasdaq. Dow and nasdaq are both down almost exactly the same, 55 points thats not for the dow but for the nasdaq, it is something to watch after yesterdays big rebound. We are seeing red on the screen. We are hoping the market bounces back and follows that snapback we had on wednesday. Time to step out of the markets and get a check on some other top world and National News headlines with nbcs Frances Rivera in new york with those. Good morning. Microsoft recently alerted the Campaign Advisory firm for joe biden that his suspended targeted by russian state hackers. The source saying, quote, they are welldefended and there has been no breach to california, 28 fires are wreaking havoc including the second, third and fourth largest wild fire in the states history. More than 2. 5 million acres have been destroyed three deaths across the states including a grandmother in original oregon and her grandson the mother suffered serious burns and is being treated in icu. This day, in 1991, the song released smells like teen spirit. Known as one of the greatest songs of all time. I have been a bad parent because i have not instilled smells like teen spirit into my childrens heads. I have to do that today. I think you have to i think there has been one album that obliterated a genre hair metal went from this to zero in about one week after that album came out. Come as you are best song ever we need to play it all day in a loop why not good stuff have a great day in d. C. , the senate is said to vote on a slimmed down relief bill today talks have stalled in recent days with that bill said to be a nonstarter in the house. The Washington Post reporting that President Trump may step in with more executive actions to try to fill the gap. Tracie potts with us with more on that. Good morning reporter good morning. It is a vote but seems to be a vote going somewhere Senate Majority leader saying he just wants to get every senator on the record where they stand on some sort of Coronavirus Relief this is nothing like the 3 plus trillion democrats were looking for or what the republicans were willing to concede to. It is what they call the skinny plan that would be 300 a week for unemployment, which is half of what they agreed for. It does include money for Small Business but includes nothing for state and local governments. Notably, no more direct stimulus payments not in this version. That 1,200 check you got from the government and there was supposed to be a second round, not included in this talk today. The white house says if it fails as it is expected to, this socalled skinny bill may go away and the president will look for other ways to get money where it needs to be for example, executive orders on relief for airlines, unemployment, School Vouchers and changes the president already made to payroll taxes. It looks like the president may act on his own today virtually expected to go nowhere. What is the time line saying it does not go anywhere what about congress . Do they step back in do we expect discussions and negotiations to continue that would be the hope but theyll been stalled since july, through the break in august. They are going nowhere getting closer to the middle it is just a question now of President Trump and nancy pelosi, maybe mcconnell and schumer making concessions because we are getting to the budget period and theyll have to make a crunch for the economy right now. An important discussion on stimulus thank you. Have a great day still ahead, astrazeneca firing back on reports regarding the patient and the reports it had to suspend the vaccine trial. And the battleground state and foxconn factory has found itself at the center of the debate dow futures down the same, 62. Well be right back. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Welcome back futures are ticking lower. Will that continue today not looking like it right now. The tiktok of a deal Chinas Bytedance talking with washington about ways to avoid a sale or full shutdown. Hard to believe but true, the nfl kicks off tonight with houston facing kansas city well talk with a leading agent about what to expect it is thursday, september 10, 2020 Worldwide Exchange on cnbc we talked about hair metal earlier in the show, i guess thats the reason for the music. I dont hate myself for loving you. I love you for watching. I think i got that right. Lets get a check of the market at your money. Futures indicating yesterdays snap back may not keep snapping back they are lowing but not by a lot. Futures are lower. Back after posting big losses. Up more than 3 yesterday. The best day since april nasdaq 100 closer higher led by gains in zoom and tesla. The biggest mover, the vix falling. A big economic day as well jobless claims are out at 8 30 Producer Prices with oil and gas. 11 00 a. M. With crude oil that has been weak as well. Stocks have been mixed in asia overnight with china closing lower. Ahead of that decision, 7 45 eastern. Mixed as well with france and the uk down but germany mildly higher back here at home, astrazeneca defensive over the late stage of the suspension of the trial. A report says that could get back on track as early as next week we have that and more headlines. Thats right. Astrazeneca says it is investigating the safety of the candidate but denies there is definitive evidence one of the testers received a case of spinal inflammation. Stating, quote, we have statement that our patient yernt suffered transfer myelitis are incorrect. One volunteer was confirmed to have an undiagnosed case of ms unrelated to the vaccine Amazon Agency director has been named to the companys board of directors. Alexander, a fourstar army general who previously served as nsa commander will bring considerably National Security and Cyber Security experience to amazons 11person board as they remain locked in a battle with microsoft over the jedi deal with the u. S. Government bytedance working with the u. S. 0 government to avoid a shout down sources say those possibilities include handing over operational control of data to a u. S. Tech company. It remains unclear if the Trump Administration would be willing to go along. We saw some cat videos there. Every morning is made better by some cat dancing videos. Politics and the economy three years ago, President Trump promised the eighth wonder of the world was coming to wisconsin. Foxconn hasnt produced even one of the promised display panels at the site. There are things happening there. With 4 billion at stake in wisconsin, that has become maybe the most important battleground state. We have more with scott with the latest as weve been reporting all along, the story of foxconn in wisconsin has been one of big promises falling short almost since President Trump first hailed what was supposed to be a 10 billion facility creating some 13,000 jobs in exchange for some 4 billion in state and local subsidies. Today, we are far from that but there is a plant taking shape on the site we are only now about to occupy the main facility, which is way behind schedule. They are making covid masks on site they are plans to build ventilators. They are talking of producing ginsing in wisconsin some 2,400 people are employed as foxconn said end of last year, they had hired about 550 people in the state. Again, far short of the target this isnt necessarily attributed to foxconn specifically the metro area is third in the nation for wage growth over the past year as of july according to the labor department. Is any of that vindication for President Trump in wisconsin not necessarily according to our states of play poll, which shows biden building his lead in the state. 43 of wisconsin voters surveyed say they feel confident or good about the economy. A little higher than the 40 nationwide op t on the question of who would do a better job getting people back to work, biden holds a narrow edge some say they are skeptical of foxconn as well. They are still auditing the companys claim for the first round of subsidy payments they made and are still in discussions with foxconn about renegotiating that Massive Development contract scott, listen, this is the ultimate economic story. Ive spent a lot of time in wisconsin, as you know what might they build once this plant iscompleted . They had changed to lcd, cell phone displays there is talk about making servers ther