Transcripts For CNBC Power Lunch 20240712 : vimarsana.com

CNBC Power Lunch July 12, 2024

One of the great men of American Business will join us following the nfl teams first time back oen field without fans but players bringing attention to social justice around the country. Power lunch starts right now guess were together but separate, once again welcome to power lunch. Billions of dollars of deals on wall street today. For 20 billion, gilead adding to its cancer fighting portfolio. Its basically doubled next up for 40 billion, the biggest chip deal ever, nvidia buying arm holdings which designs chips. Up 8 and finally not quite a deal yet oracle betting to be Technical Partner in the u. S. September 20th deadline. Oracle shares up 5 on the news. Well have all of this back over to you all those big deals on wall street helping the comeback rally in stocks. After two down weeks in a row. We havent seen that in a long time jim paulson joins us now is your time to buy the dip. Welcome. Good to see you. You see the marriage between wall street and main street looks as strong as ever today. I say what have you been smoking . Im telling you, in my little town in new jersey, you cannot walk the streets of that town and say that Small Businesses are in any sense as healthy as big corporations i tell you, what this country experienced was a complete collapse of the economy on main street in a matter of a month or two. Thats what happened on wall street with the biggest collapse, biggest, quickest bear market to drop 30, 40 then what they both experienced is a huge bounce record setting bounce. That includes not only whats happened in the stock market but also includes a record setting bounce in main street. If you look at real gdp which went down 32 in the second quarter, according to atlanta fed, now its supposed to be up 31 in the Current Quarter for example, thats the biggest collapse ever and would be the biggest increase ever in a single quarter if you look at whats happened to the job market, we lost 22 million jobs and we regained already half of them nap was the biggest loss its also so far the quickest gain in jobs that we had if you look at retail sale, which collapsed to multiple year lows only to come back within a couple of months to all time record highs, if you look at the isms whether its service or manufacturing, they fell the the low 40s and in a matter of let me interrupt you. Im saying the pattern on main is similar to the pattern on wall street i just dont buy it i just dont buy it. You and i are friends but i just dont buy it you know the numbers as well as i do if youre at 100 and you lose 50 of the value in your market or value of your stock you have to double, you have to double to get back to where you were that hasnt happened im telling you, jim, when you go into a store, they cannot accommodate the number of customers, not in my region, maybe its different in minnesota. Maybe its different in texas. In my region, you cant go in the store if there are more than two other customers in there the stores cannot do anything close to the volume that they were doing youre saying main street has come back on par with large corporations, i just think thats not right i didnt say on par i said they both experienced record setting collapse and they both have experienced record setting surge. That pattern is very similar theyre still not anywhere close to where they were they are hiring. Their employment is nowhere close to where it was, jim i dont disagree with that. Thats not uncommon at all in recessions we have recession and it takes a long time to get main street back to where it was shot back up to levels that are higher than they were precovid. Jim these are not people cant get in the store. This is not because main street has done it its because target has done it and costco has done it and walmart has doneit and lots of the big Box Companies have done it its being driven there. Its being driven by a resurgence in auto sales its not because the little coffee shop in westfield new jersey is doing better its not people have to wait outside to get in if theyre open at all im not saying theres not continued stress and pain on main street and it will be for a long time. We blew out to a 10 Unemployment Rate above that in 2009 we had a 10 plus Unemployment Rate. Both of those took years before it got back to where it first was prior to each of those recessions i mean almost a decade it doesnt mean that we havent started the expansion. It doesnt mean were not in a new recovery or in a new bull market just like we have been at points in the past when you still had pain on main street but there was already a sizable turn in Economic Activity and the stock market you know, i love your optimism youre one of my favorite contributors we go back a long, long tiemg time we do please dont confuse my passion other than anything but respect for you to push back on your ideas. Come visit us in new york. Come and walk across time square at noon any day of the week. Come and walk across 50th street in manhattan as i did last week. Id love to show you the picture at noon. I looked from 6th avenue from 5th avenue and i saw two people two people that means theres nobody in the offices. Theres nobody going into the retailers. Its a different world up there. Lets talk for a second about why you think the market can keep moving higher i wont interrut you i promise. Thats fine i would just say the bounce weve had so far in the economy and i think thats what the stock market has been responding to more than anything has to do with sort of an artificial collapse that was caused from a very unique recession caused by just hitting the off switch on the economy. I think it fell so far and so fast, it was a really emotional collapse that caused the stock market to go down a lot too. Both have bounced so far and i think thats about running its course we might have a little more of that bounce left from here it will become more of a normal recovery. I think whats going to kick in is all the stimulus that we introduced here since this begun. We have introduced unprecedented massive policy stimulus. 25 into money growth is 2. 5 times faster than anything else in the post war era. 15 , maybe even 20 deficit to gdp ratio is one of the strongest fiscal responses of postwar era record low mortgage rates. All of that when you look back takes about a year or a little more to really favorably show u in the economy i dont think that stimulus has done much yet. Next year it will kick in. Weve had eight recessions since 1960 and every one of them was followed by a year of a significant increase in policy stimulus and every one of them brought a significant recovery in the economy i think this one is well in fact, it might be bigger than normal because of the bigger than normal policy response. Let us pray it is so. Thank you for your good natured jousting i appreciate it. Any time. Youre always a good guy and a good sport about it. I sorry i interrupted you a couple of times. No problem. Ty, you can only imagine what clients put him through. Lets check in on shares of astra zeneca the stock took a hit last week when the trial was put on hold its up about 1 today meg is here for more with us were coming through that trial can resume in the uk we havent heard about other markets including the United States the company saying it got that word from the regulator there that it was safe to resume but not giving anymore details about what the illness was in the trial or how it was deemed safe to resume. Both astrazeneca and oxford c e citing patient confidentiality the fact that we dont have more information here is raiding some concerns in the Scientific Community who are asking for more details a piece about this in the New York Times yesterday that pointed out the fact were pointing out last week that all of the information we have gotten about this, really has been from a private i venvestor call we still dont have as many details the company has given publicly as theres so much distrust, many in the Scientific Community asking the whole industry for more transparency. Its ironic because they signed the whole letter saying well be super transparent but when it came to this update, maybe that wasnt the case let me ask you about pfizer because the ceo said well have vaccine in use before tend of the year sticking to their guns or this sound like sooner than people hoped . They are sticking to line about expecting to have data on whether their vaccine works by the end of october thats not a view shared by people like dr. Fauci. I asked the ceo about that time line this morning and specifically a date in october october 22 nt when the fda has an outside meeting of its advisers to talk about vaccines and whether they have data by then here is what he said we will be in time to date although its not impossible i think its unlikely. From the time the start to result, some time to repair for the submission thats important because a lot of folks in the industry are really focused on that date as being necessary if a vaccine is going to get approved by november 3rd, election day many expect that this committee would need to be able to review the data on the 22nd well have to see how all of this shakes out. Appreciate it tyler. Coming up, whats the deal with tiktok . Oracle awaiting approval to be the companys trusted tech partner. The nfl kicking off its first round of games over the weekend. Mostly without fans. Well talk to the owner of the Atlanta Falcons about football, the pandemic and business with values im searching for info on options trading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn visitlookentertainmentourarn experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Oracle rising today as the Company Emerges as the winner for tiktok american operations well, sort of. Oracle wont be taking over the company, just the technology will be that be good enough for the Trump Administration thats forced this deal over security concerns here is what stephen mnushchin said we did get a proposal over the weekend. Making a recommendation to the president and reviewing it with him. All right for more on the details of this proposed deal, here is josh lipton hi, josh check out this move. Its on track for its best day since march. That is up more than 50 from its march low. Its note totally clear but oracle does offer Cloud Infrastructure oracle not a leader but it does have a new product taking aim at amazon and microsoft the executives do have close ties to the Trump Administration theres larry elerson, he threw a fundraiser for President Trump who calls him a tremendous guy. Back to you. Im so glad youre here how it affects the balance sheet. Will oracle be reporting tiktoks revenue and profit as its own . Its great to be here with you on a really interesting day. Whether its just a Technology Provider ta gets a name brand customer does it make a difference if they did participate in the financials, you would imagine the stock trading different. On the other hand, tiktok loses money right now and make the exposure gives oracle a bit of the halo effect without having to worry about that baggage. Whats the better scenario as far as youre concerned . For us, its important to step back and understand what could be the strategic priority here for oracle. Thats changing the narrative around the potential for growth of the company for oracle, its really been the top story over the last few years. The Market Opportunity that they are going after is pretty tremendous most analysts, including ourselves think this is more than a quarter billion dollar or trillion dollar market in the next few years oracle has low single share of the market. I understand where they are coming from but its tough competition. Youre up against the biggest, best players in the world with their own cool factor. Its still an extremely competitive environment even if they have zoom and tiktok. This is speculative but who calls the shots in this arrangement as far as we understand it. They have a minority take in tiktok u. S. And tiktok has a problem with the way they do business, collecting data, is oracle calling the shots or not . Do they get sucked into tiktoks drama and have to deal with u. S. Regulators all the time as people try to figure out whether they are kosher or not in. I think thats great question it sounds to us like the people that would be calling the shots would be oracles or the vc backers. The leadership of tiktok i think oracle will be able to put potentially their stamp on how the data store, where its stored, how its handled and managed. Thats pretty important. Its going to drive what kind of drama they could get pulled into the competition is fierce. I wouldnt underestimate the opportunity for oerk to get closer in this type of arrangement with some of the tra ste strategic backers. I think thats an avenue for oracle to pursue down the road for getting more deeply embedded into the High Growth Software landsca landscape. Its almost a vc model which is get in early and when couple of the winners who emerge from that suddenly youre backing a zoom and that could make a big difference finally question sints you have a 60 price target is what would it take for you toematerially rerate the shares. I think for us it goes back to the Software Companies accelerate their growth trajectory show they are gaining share. Thats a pretty exciting and compelling growth opportunity. Well have to see how its able to execute successfully. Infinite Market Opportunity it sounds crazy. Look at the valuations alex, thanks so much for joining us today my pleasure thanks for having me coming up, the biggest chip deal ever as shares are up 120 this year. Nvidia buying arm holdings for 40 billion traders will explain what this means for the stock. Democratic nominee joe biden and the dnc out raising President Trump in the month of august his next stop, wall street more power lunch after this. At leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading so youre a small businor a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Good job, michael does. Ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Nvidias 40 billion purchase of soft bank arm holdings has sparked a rally in several chip stocks today as investors bet on more in the sector theres some concern that some of nvidias competitors will try to block this deal what do you think . Does it cross the finish line and how are you trading the stock right here nvidia is exceptionally expensive which is not to say it cant go up or will go up. Were interested in valuation along with fundamentals. I think the transaction looks like deal on paper edged to Data Center Dominance those are strong and compelling reasons to own the stock i am concerned, at least in near term until we get more clarity on a regulatory basis if this will go through. Were overweight and have been for some time. We are playing the space with names like broadcom and texas instruments. Companies that have been growing their dividends are more attr t attracti attractive really showed leadership during the covid crisis and built inventory so there could be no supply chain disruptions for underlying customers we Like Companies like that that have a Capital Allocation strategy thats friendly to shareholders the stock is up 117 this year you say its showing some signs of upside exhaustion tell us what youre seeing thats right. The up trend had been very strong up until about two weeks ago when it versed down very sharply. Thats constructive in way it helps relieve what was an overbought condition that had been in place since may for the stock. Theres been no recent break outs to foster the momentum that its had i see the consolidation as something that should shield buying opportunity in nvidia and a lot of other high flyers out there are similarly pulling back i think that kind of action is healthy. I also dont think its over quite yet. We have seen some minor relief the support level had any weight for nvidia theres still some down side there. With this mornings news we saw the stock gap up and its traded off.

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