Transcripts For CNBC Squawk 20240704 : vimarsana.com

CNBC Squawk July 4, 2024

The nasdaq down even more, 1. 8 . You add the magnificent 7. There was a pullback of, i think, 233 billion in market cap for those big magnificent 7. The only one that ended higher was invip ya shares of apple down 3 after a report of struggling iphone sales in china then you had tesla, down by even more than that, and pretty decisive declines in technology. It was interesting watching them one by one. Kind of roll . Were going to need a terrific two. Terrific two or the rest of the averages the rest of the stocks to kaup up to what the magnificent seven do. They want to solve income inequality that i wamgt to bring everybody else down. I wish everyone would join the magnificent 7. Apple has been a great stock and a great harbinger of this tech bull market of the magnificent 7. So has tesla now were really i mean all our eggs are in nvidia at this point, although, i dont think we need to anybody whos worried about most over the past 25 years has been proven wrong . Yeah. Yeah. Im not so worried about zuckerberg is so smart even though hes got a lot of pit falls. By the way, this was a pullback for the s p and the dow. I think youre talking about the classic 2 for the lowtime highs for the dow and s p 500. Its weird. It says the average is sold off but the more speck lartive parts of the rally its pulled back. And reboundinged in the media. 69, 59 where are we were looking at 65 today. Lets very quickly look at treasuries the 10year today yielding 4. 16 and the 2year the bitcoin climbing to a new high of 69,000. Then it tumbledmy by more than 8 and jumped pat up to 66. 6. It was all the way to 59. Its all right here in the paper, but it went down. It went 69 to 59,700 then a 4 retreat, but whos counting for the month and six months, one year, five year did you read this they were a catalyst to currency comeback. Have you ever seen it not on the front page not on the front page of the wall street journal. They called it the currents dont you think they had to think about that. Think of all the things we have to be careful with now. You know the great picture of the veteran kissing the nurse . Yeah, yeah. They banned that. Why because he looked so happy he might have grabbed her and forced himself on her. Then the v. A. Said thats crap. The woke person thought it was a bad sign. My grandparents who came home at that point, how excited they were. That is a big i wonder how the turf battle kind of sees that between gary gensler, between what happens at the cf d. C. Meantime President Biden and former President Donald Trump dominated super tuesdays nominating ontest, each of the winning hundreds of delegates and moving must closer to clinching their nominations. Biden has secured more than 72 of the total he needs to secure the democratic nomination. Trump ended the day with about 98 of the total to form aally be the presumptive gop nominee he declared his victory without mentioning Nikki Haley Nikki haley won in vermont, 50 to trumps 45 but she lost in the other 14 states that actually voted haley did not speak overnight about her future adam schiff and steve garvey won the top two seats to fill the late senate seat of dianne feinstein. Schiff is the only democrat in that state in a state that has elected a republican senator since the 1960s. Please, god, please, god. Here it is right here. That i didnt see coming that i didnt see coming. No. So many things in our history need to be wiped away, so many things its just a lot of things. People get very uncomfortable with a lot of things thats kind of really . Thats the first instance the left has it wasnt a surprise all day long, she was going to win vermont. The polls showed she was up or tied. She got big support from the governor there, chris sununu. Republican. Sununu. Thats new hampshire. Yes, youre right no. I told him its the land of ben jerrys and Bernie Sanders its the land of ben jerrys and Bernie Sanders so let me ask you. At this point shes shown a lot of backbone and, you know, resolve and everything is that good people say that shes setting herself up for potential in 2020. But listening to a lot of you know, it was never real, the hubris it was never going to happen, at least the last two weeks it never ends up looking stupid or do we say thats just politics i think shes trying to look to beyond what happens in 2024 i mean clearly its not going to be something that happens this time around for her. The question is what does she do from here. New york times, this is unbel unbelievable what would you call it hair on fire for a lot of o people i dont want to be the bearer of bad news theyre going to shoot the merger donald trump met with elon musk. If elon musk already had no fans, former fans, he definitely has none left on that side of the aisle. He met with the orange man in palm beach, florida, along with wealthy republican donors, the report citing three people briefed on the meeting saying the former president is seeking additional major donors. He might qualify to shore up his finances as he heads toward the election. Its not clear whether musk will back trump he was asked to marek comments back in ancient history like january 20th, 2020. The first covid case arrived in the u. S. I interviewed him at davo. Did you he gave a very pissy response hes good with rockets, and he got a lot of grief hes always been a fan of elon. No. He called elon an expletive at one point, but elon musk has had much bigger problems with the current president of the white house. He is good with the restaurants. Rockets. He was the bell of davos. That was january 21st and it was before covid and everyone was looking at the economy Kyrsten Sinema is not going to be around she was going to have a thard time. She was in third place. He had decided to run for reelection. Shes going to leave the senate at the end of the year when her term ends. Heres what she said in a video posted on x. The only political things that matter these days are symbolic c compromise is a dirty word weve arrived at that crossroad. We chose anger and division. I believe in my approach, but its not what america wants right now. Virginia senator joe manchin said yesterday hes worried about the fate of the filibuster after sinema leaves the senate rue been gallego has said he does not support the filibuster and they were both the bull wark, the remaining it depends where they go too. Very close. But the middle is you know, heres two more people in the middle that are gone larry hole began is running for not. Thats possible. Nobodys running in the middle. Its been happening for years. We used to ask whos in the mid. We had manchin and sinema. I used to think of evan bye. Nobody has left at that point. No. When we come back, jay powell is set to tiff before the House Financial Services committee this morning but before that agains on what he expected to hear from the fell chair. Nikki haley will deliver remarks at 10 00 a. M. Today in charleston well update you when we know more squawk box will be right back. vo what does it mean to be rich . Maybe rich is less about reaching a magic number. And more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. The key to being rich is knowing what counts. The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. The all new godaddy airo. Put your Business Online in minutes with the power of ai. You can make money the hard way as a bullfighter put your Business Online in minutes or a human cannonball. Or save money the easy way, with xfinity mobile. Existing customers can get a free line of our most popular unlimited plan for a year not only will you save hundreds but youll also be joining millions who have connected to americas most reliable 5g network. Sure is a lot safer than becoming a stuntman for money. Get a free line of unlimited intro for a year when you buy one unlimited line. Visit xfinitymobile. Com today to learn more. Welcome back, everybody. Fed chair jay powell will testify later this morning on capitol hill our next guest is going to be leading those hearings joining us right now is Financial Services Committee Chairman Patrick Mchenry mr. Chairman, thank you for being here today this is a pretty important day for the markets. What are you hoping to hear from the fed chair . Two things. I think the important thing is to make clear what the fed is now thinking going into this Political Year operate setting i think they need to send a certain message, a strong message with certainty about how they intend to process data, especially given the backdrop of the election the second piece is regulatory policy michael bar has put forward a massive new Regulatory Regime in the name of raising bank capital. Its become a mess and theres become bipartisan opposition to this, theres an opposition to the real economy, not just to banks on this new proposal and its been called out as a massive dysfunction in the name of the Capital World and i want to hear how the the fed process and how theyre going to dedeal with this regime. Its what all are looking to those are things way p i want to hear. Lets start out with your first question, the idea that you want to hear very strong message operate setting. I mean the picture has gotten a little more complicated with stronger than expected Inflation Numbers that suggested maybe its not going to be so easy for feds to cut rates at least immediately. If they say were dependent on the data, well see what happens. Is that Strong Enough for you just to say its data dependent . Well, its data dependent, but we keep hearter about refinement were going to try to get what we can for congressional oversight its always been difficult, but especially in these uncertain times, its quite challenging for sure. You also have the added issue of this being an Election Year you hijted at that in your Opening Statements on this if he says its data dependent, were not going to cut now, but well see what happens in the next few months, is that a satisfactory answer . What happens if the fed actually ends up cutting rates two months before the election . Does that raise questions for you from a political perspective because jay powell has been saying there are no polling ticks involved do you take him at his word . This is not going to be Political Data dependent but Economic Data dependent and drill on inflation thats still a Major Economic issue for the American People and the thing i hear most clearly, the cost of everything is going to go up dramatically, and its a huge political Pressure Point way. To make sure theyre focused on the data, not on the politics. Hes said that again and again. Is him repeating this enough for you . Well, look. Hes got to refine that. Hes got to be much clearer how theyre going to process this data we know theyre in a Political Year all the agencies are trying to drive regulation as quickly as they can because the Congressional Review Act that gives congress the authority to repeal major rule making, theyre under that clock and so we want to make clear i think chairman powell needst make clear that theyre not going to look to the Congressional Review Act theyre going to try to make this dependent on the data and it gets very complicated with refinements to this rule and theyll start anu, start afresh. The fed shouldnt dependent on the political clock. They should be looking at driving the stability. Theres question about the stability in the bank and there are new developments at the Community Bancorp if thats a contagion. Whats happening with real estating and thats a big issue for a lot of the regional banks. How many questions do you have in terms of the stability of it at this point . I think the system is safe and sound. The Bank Failures we saw last year at this time were to very specific instances of rapid rate increases having an impact on Balance Sheetses a Balance Sheet is one related to the real estate i think the market is making a severe statement about their assumption about the bank and i think regulators mavi to respond. They have the capacity and law to do that, and we know how to resolve banks without those that have deposit insurance without them taking any hit to their ktss. Mr. Chairman, wheres your sense of the economy right now whether the fed should or should cut rats do you have any thought on that before you hear from them . Look. We have inflation thats receded in many of the ways that the fed measures this. The average experience of the American People of the current econmy data, so i think the fed has to be clear about this ive tried to be thoughtful on my rhetoric about the fed unlike folks in washington. Im much more concerned about regulatory policy than whether its one rate cut or six this year thats something the market can opine about. Im trying to figure out if the regulatory policy isnt absurd and dumb at this point what we see from the bank capitol raise that borrowers propose is both absurd and dumb you think it affects the potential for american banks to be competitive, the American Financial system i think it will have an impact in the long term, and it also brings the fed into this poli political milieu of the federal policy and an Election Year. If they want to come into the political waters and look partisan, then they should drive forward with the bar proposal, and if they want to be viewed as an independent policy, they need to be much more methodical about it im concerned about the impact and how the fed is broodly viewed and whether theyre i think theyve got a lot of Reputational Risk if they go in a different direction later this month. Coming up, openai responding to elon musk lets move, opening up about emails. Later Mohamed El Erian will weigh in on what he expected to hear from the fed chair. Squawk box returns ur trades is on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. Tailor the platforms to your unique needs with nearly endless customization. And track Market Trends with uptotheminute news and insights. Trade brilliantly with schwab. Theyre waiting for you. Hey, do you have a second . Theyre all expecting more. More efficiency. More benefits. More growth. When you realize you can give your people everything, and more. Thank you very much. [applause] ask, now what . Heres what. You go with prudential to protect, empower and grow. With everything you need to deliver, you guessed it. More. One more thing. Whos your rock . Learn more at prudential. Com glp1 drugs used in weight loss treatments stand out as the biggest global blockbuster, but these treatments require cumbersome injections. With lexarias patented oral delivery technology, early studies suggest a better way. Lexaria bioscience. Nikki haley will deliver remarks in charleston today at 10 00 a. M. A source familiar with her plans confirmed to nbc news she will as now shes exiting the president ial race. Well talk more with paul ryan, former speaker of the house. The big question, will she endorse donald trump when she bows out. Exactly that is a big question, big decision. Time now for executive edge. Openai has publicly responded to a lawsuit with elon musk the tesla ceo encouraged the startup to raise at least a billion dollars in funding and agreed it should start being less open and, in his words, not share the companys science with the public in one email in 2018 musk wrote openai had no chance of becoming a competitor to Googles Deepmind without relative changes. Last week he accused the company and Ceo Sam Altman from deviating from its initial mission by keeping the worksen of its post he told them change your name, that openai is no longer an open source project for the betterment of humanity but a for profit enterprise. We should note cnbc has not all t thent indicated it he sounds like he was fairly definitive in what he was saying, but it was six years ago. I dodge think any of us saw what was coming or how quickly we were going go here in terms of openai his tweet, he said they should rename themselves closed sour source for he told andrew to change his name to jonathan he said change open source. Okay, yeah, yeah, yeah. All right, when we come back, were going to talk markets after yesterdays 1 pull back for the dow and the s p. The futures this morning are a little higher, bouncing back a little bit after yesterdays declines the dow right now accounted by 85 points, the s p futures up by to and the nasdaq up by 135 points right here. As we head to a break, lets take a look at yesterdays s p 500 winners, which were hard to find, and the losers too announcer executive edge is sponsored by at t business nextlevel moments need the nextlevel network of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. icy hot. Ice works fast. Heat makes it last. Feel the power of contrast therapy. So you can rise from pain. Icy hot. Good morning and welcome back to squawk box live from the Nasdaq Market site in times square checking the futures, the nasdaq is having a pretty good rebound, but not a lot happening. The dow is up 73

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