tv Worldwide Exchange CNBC September 13, 2019 5:00am-6:00am EDT
it is 5:00 at cnbc your five at 5:00 is all about eight. find new reasons to love stocks. staving off recession. president trump announced a new round of, quote, very substantial middle class tax cuts coming as soon as next year the art of the interim deal. open for a short-term agreement with china as bigger issues get hammered out we work at wework. what could be the most
controversial ipo of the year. and speaking of ipos, nobody is smiling. the "worldwide exchange" begins right now. ♪ good after, good morning, good evening. i'm brian sullivan the world really is watching to see if our markets can hit some record highs today we are very, very close to hitting that mark. futures are higher once again. do you futures up 71 points. wall street is on record watch the dow and s&p 500 both less than 1% away from record highs today could be the day the nasdaq a little further away about 2% away from highs as well the letters to watch for are these, 27,398 on the dow
3,027. those are the records. call it 1.8% around the world, in asia, markets are close. more gains in japan. the japanese market quietly looking like it will gain a little steam up overnight european markets green with exception of the ftse 100. this morning, comments from president trump may be ready to give the market a little shot in the arm. speaking at a republican retreat in baltimore and maybe trying to draw some attention away from the debates, the president said he is working on a new round of tax cuts aimed on the middle class. >> we are working on a middle tax, a tax cut for the middle income people that is going to be very, very inspirational.
i think it will be something that everyone is looking for we'll be announcing it sometime in the next year it will be a very, very substantial tax cut for middle income folk who's work so hard >> it is not just tax cuts president trump is talking about. also signaling that he is willing to make an interim deal with china also what he told reporters last night. >> we are going to do the deal, let's get it done. a lot of people are talking about it i see a lot of analysts saying an interim deal, meaning we'll do easy parts of it first. there is no easy or hard there is a deal or not a deal. we are doing very well >> so how should any of this factor into what happens to your investments going forward.
chief investor rob morgan with us what has been behind this rally with seven straight days of gains after a lot of people were predicting we are done in august >> brian, i think all of the volatility in the selloff days we saw in august were probably a bit overdone i think as we continue on with negotiations between the u.s. and china, even though recently, those negotiations have appeared to be positive, we'll probably get more twists and turns there. it wouldn't surprise me if there is another disappointment in negotiations but a more positive view of where we stand >> are you in the camp we are
going to get a deal? maybe it is going to take until the next white house attendant or occupant before any kind of deal happens >> brian, there are huge issues in the intellectual property area >> section 301 that's the big sticking point. >> i don't know if we are ever going to solve those the other issues, whether you want to call it an interim deal, what have you, i think most of those are solvable we should be able to take care of those but the intellectual property, i don't know that's a tall mountain to climb. >> let's try to make some money. we talk about fridays being opportunity fridays here on "worldwide exchange. what looks like a value or undervalued there to you, rob? >> brian, a big part of my
thesis has been with the fed that the dollar will trend down here. >> that should help big stocks over multicapital stocks and the individual sectors of the s&p 500 financials, consumer stables, technology, they all look very attractive right now. >> what looks unattractive >> the flip side of that -- when i look at sectors of the s&p 500, i'm really looking at three things i'm looking at good valuables, good technicals. those are the best i see the flip side is where those don't look so good energy, industrials and telecom. energy has been so beaten down this year.
it doesn't look promising. >> some of them are down 60 and 70%. oil is now at 65 at any point, does energy look a attractive people just left it on the side walk, trash, bye, gone >> it becomes attractive we don't seem to be there yet. >> not yet all right, rob we appreciate the views. have a good weekend. in the meantime, a vesting story this morning on wework new details as it pushes ahead we have more on this story >> wework's parent company has reportedly listed shares on the nasdaq the public debut is now planned for the week of september 23
it has been a difficult few weeks for wework with cofounder adam neumann's under scrutiniy including curbing neumann voting power. another could see the ce o's wife rebecca removed from the committee that would decide his predecessor should he die or be disabled concerns with softbank spurring the possibility of softbank injecting capital to suspended ipo. this one is just a drama >> it is there has been a lot of high-profile ipos this year. this one has an air of intrigue
around it maybe unlike others with the exception of uber >> it has been interesting the household names, the splashy un unicorns we saw this yesterday with smile direct fell 10%. while another not as well-known had a fantastic debut pricing above the range as well. >> it is the ones we would never talk about bertha, thank you. we'll see you in a few minutes when we come back, the red hot cnbc cfo survey is out amazon making big changes at hundreds of whole food locations across the country much to the dismay of some of its employees and new details on one of the worse stock rkmaet debuts in
years. we are back right after this ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. ♪ ♪
the world. frank knows and joins us with the details. >> they are talking about the global economy new tariffs were taking effects and trade tensions were escalating our survey got the most responses from cfos ever seeing u.s. trade policy as having a negative impact on their business more than a third see the u.s. trade policy as the biggest external threat. 16% say china is the biggest the dispute between the two largest economies in the world has financial decision makers very worried about more than just their business. the concern rising as things continue to escalate with trade and everything else. improving to stable to d
declining. 60% of u.s. cfos have made plans in chase the trade war worsens more than a quarter say they've had to increase prices to offset those tariff costs >> they are sending a message. trying to send a message to d.c. that this is expensive >> at the height of the trade war, we got the most response ever >> two-thirds say they do not see a recession coming next year >> two-thirds do not 66% do not see a recession next year >> do not. >> frank holland, thank you very much on deck, can we hit new record highs or will 8 be enough? our next guest says most of the year's gains may already be in
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at some of the key stories of the day. first up, smile direct with the worst public debut of a u.s. company. uber shares took a bunch of heat they fell only 7.5%. now pre-market trading, smile direct is back up slightly coming under a bit of pressure despite the company posting better than expected earnings. the core semiconductor business has not bottomed out this should get some attention, whole foods is cutting medical benefits for part time staffers. beginning november 1, members will have to put in a minimum
hours a week next, we'll go live to houston where the markets and your money took center stage. one high profile executive is buying a one way ticket from new york to florida. on the way out bauecse of taxes. we are back after this memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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>> thanks for being with us. stock futures are trying to make it eight straight day of gains for the dow, s&p and nasdaq. we'll see if eight is enough let's check on other top headlines outside of the world of money and business, phillip mena is with us now. >> devastated by dorian, the bahamas have a long way to go in the recovery process the islands are facing another severe threat. tropical storm conditions could hit areas recently impacted by dorian beginning as early as this morning felicitiy huffman preparing to learn her fate. accused of paying $15,000 to have wrong answers corrected on her daughter's sat
her attorneys requested probation and community service. prosecutors say she should spend a month in prison and pay a fine >> and response to the boy teased for wearing a homemade university of tennessee tee. they have offered him a four-year scholarship to the university man. >> listen, every time you think the world is terrible. you hear stories like this there is a lot of good out there. >> i love it it is friday 13, there is a harvest moon we love you.
>> make it eight we'll find out wall street keeps creeping back towards all-time highs issues that matter to the market taking center stage. buy yourself a pair of cheap sunglasses karl icon is making the move to miami, goodbye new york. ♪ >> welcome back, good friday morning. here is how your money and investments are looking right now. if you've got to get to work, it is 5:27. we are on stock record watch futures are higher what can hold them back? september, traditionally the
worst month of the year for stocks not this year. stocks have done very well now the dow and s&p have all done worse than 1% the number there to watch 3,027. nasdaq a little farther. the nasdaq or the s&p 500. you never know today could be the day if we see buying momentum accelerate >> bonds have gone up. yields have gone down. the markets in china, taiwan, south korea were closed but open in hong kong and japan both gained. japan is making this quiet little run lately on the nikkei. japan stocks up. hang song up just under 1% european markets, not gains in a big sale averages are up.
ftse 100 is down slightly. to the campaign trail now where the front-running democratic candidates lined upside by side in houston. debating issues that matter to the markets and your manufacture. we'll go now live to houston with more. >> reporter: good morning. it was three hours of wide-ranging questioning on immigration, education and the economy. that moderate divide was apparent from the get go with another deep dive into health care policy the cost, the customers and the role of the private sector joe biden slammed medicare for all plans as too costly. when moderators asked elizabeth warren how she would pay for the plan and if it would include a middle class tax raise, here is how she responded.
>> costs will go up for wed wealthier individuals and large corporations but for hard working families, costs are going to go down and that's how it should work. >> reporter: questioning turned to civil rights and recent mass shootings where beto o'rourke was given an opportunity to rei had rate his stance on assault weapon buy backs. >> hell yes, we are going to take your ar 14, ak 37 >> that was by far the biggest applause of the night. many went after the front runner joe biden. we are still waiting to see
exactly how they'll respond. julian castro took that response most viciously we'll see where polls put him. >> some interesting counter programming by the president making a relatively significant policy announcement last night >> at the house lawmaker retreat, president trump said he would be looking at a substantial tax cut for the middle class over the course of the next year. he didn't give any details on where this would take place or how it would be started. the administration had been trying to eye a tax cut to make the 2017 cuts permanent when they expire in 2025. they may be looking at something
else entirely. >> kayla, we appreciate it thank you very much. joining us now, economic policy analyst and head of the public policy and research. sara and james, you know where we are going to go with this sara, who was a winner last night? who was maybe not so much? >> i think all of the campaigns can point to something they are happy with, whether congressman o'rourke and the moment he had on guns or really anybody else i don't think we saw anything to fundamentally shake up this race we have a really big difference in the party on medicare for all versus strengthening and improving obama care with vice president biden and warren and
sanders both happy to defend their respective positions i don't think we saw much of a change i guess that probably is good for those that are in the front? >> do you agree with that, jimmy? most of the analysis now is basically biden, warren and sanders. >> i'll go a little further. this is a two-person race. joe biden and warren >> even harris and sanders >> if i was one of those global cfos, i would be even more worried about trade. democrats did not seem eager to end the trade war but maybe how
they would run it differently. if the democrat wins, we are not going back to the prewar status quo. >> the states, the counties they have to win are counties like in wisconsin, pennsylvania. counties where the democrat is a union guy who likes the steelers and doesn't really engage in those progressive issues all he wants to do is protect his job. they've got to speak to that democrat more, do they not >> listen, you've got a lot of democrats who naturally take the option position from trump they cannot do it. this is a party overall which they may not like trump but they are very worried about china never liked nafta.
no one said we are taking on the tariffs, free trade for all. nobody said that >> when you go across america, there are very different people everywhere different democrats as i just laid out the life-long union person and the one who is more socially, politically liberal and progressive. who do you think can thread that needle the best? >> i think they all said they'll continue to be tough on china. i think the issue for president trump is that as he is trying to settle down some of the volatility around this trade war, the white house is unnerved about some of the news and they are trying to settle it down this group is not going to let
him. they talked about being tough on china and intellectual theft i agree we are in a new world order with china they make the point that the volatility we've seen in this approach is not working and is very different i think it is going to be an issue to come. >> let me switch some gears. the president may be trying to steel some is thunder and talking about middle class tax cuts i'm going to say something everybody hates to hear. >> look out. don't be afraid. >> middle class taxes are already at record lows record lows. nobody feels that way because state taxes have gone up, property taxes talking about a federal level. rates after deduction. rates have never been lower. that is not my opinion
you name the organization, they've got the data how do both parties keep saying that we have $22 trillion in national debt and they want to keep reducing the revenue >> no one thinks you have to pay the bill or if you have to, it is long after they are out this is super interesting. there is all this talk about cutting capital gains taxes for inflation. that seems to be off the table instead, it is more of a middle class thing usually the focus is on personal income taxes talking about federal payroll taxes. used to fund social security
this point will face long shot odds in pelosi's house of representatives. i don't think there is a lot of interest in giving president trump's election year a boost in that regard. i think he's right to point to where people are feeling it in their pocket book. i think he's speaking to a real issue. >> any income games all those taxes have gone up at one point, we've got to decide where do we go from here? it is going to get interesting in the next 12 months. thank you. >> new developments in the
u.s./china trade war president trump saying he'd like to get one comprehensive deal done, he's also open to a piece ma meal approach. >> i see a lot of analysts saying to do it piece meal there is nothing easy or hard. something we'll consider we are doing very well >> will we get some kind of deal that will help out i don't know, maybe stacey does because she is president of sw retail advisors. probably dutch probably duchess of retail let's start with trade a piece meal deal, would that help optimism with retailers
>> i think any deal would help wouldn't it be great if we could get a brexit deal, a u.s./china deal the world would be a better place. retailers, it is so hard to plan right now. they are blindsided every five minutes by a tweet a deal, no deal. most retailers have said they are working with vendors that is a positive >> you know what also is positive is some of the stocks we talk about this great rotation retail is right in there. i look at the board and see names like gap and l brands. maybe short covering is there any reason to be
optimistic about these like gap and lb >> i think so many of these companies are so beaten down gap and lb being two of them i was on your show the morning after gap announced the break up it was $30 now it is down to $20. certainly, they are pitching a story to create value by spinning off old navy. old navy is now taking on water here margins are coming down. they are also talking about dissynergies this is going to cause dissynergies here. they are breaking up just at the time when their golden egg is starting to show signs of weakness here. i would stay away from the gap as a turnaround story.
>> we haven't talked enough about this walmart move. walmart is going right after amazon's business. they are trying to punch them in the face is it going to work? do you like this strategy from walmart? >> i do. they announced the $98 delivery service. walmart, half of the business is grocery. it is so important they continue to drive the traffic and bring in new consumers and potentially higher end consumers that you say, wait, walmart is driving this great value i think they are doing the right thing same day delivery going after the subscription here. we've seen target and walmart
take on amazon successfully over the past couple of months. >> stacey, always a top performer. have a great weekend there in london >> good to see you >> coming up, poppey's is asking everyone to bring your own bun are you suffering from streaming fatigue. great length all of you are willing to do to get the streamingyou want without breaking the bank. that is coming up next no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools
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is under way the project would take place 300 years before and detail the rise and fall of the house, the civil war that led to the fall of dragons. hbo has commissioned five prequ prequel scripts that include naomi watts. >> remember her creepy brother, that they killed him >> yes this is it so basically lots more dragons ahead. meantime, it is not every day furniture goes viral but neiman marcus has achieved that selling a six-foot hot dog couch
and burger chair you can order this couch for $7,000 and the chair for just under $5,000 both come with tomato and pickle pillows. >> if you are driving and listening to the radio, when you get in i want you to search for this it is not what you think it is hideous. that hot dog is great for a pillow fight >> just say, no. i don't understand why popeyes made quite a proposal for customers. byob, bring your own bun
telling customers to pair the tenders with buns they bring from home. the chain had to discontinue sandwiches next month after a boom in popularity caused them to run out of supplies >> have you had it >> no. >> i want to try it right now. >> with ai and all of this, how you don't anticipate what your demand is going to be. >> why do you have enough chicken and not enough buns. they should come together right? >> i don't know. it is just odd that you wouldn't have figured this out. >> next hot thing. the chicken sandwich couch >> coming up, what factors could
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>> starting with your recap. karl icon is out of new york moving his hedge fund to miami saying employees who move to florida will get their salary, bonus and $50,000 in bonuses those who do not move will be paid until the first and then that is it most are moving to florida >> he says the odds of recession
before end of year are likely. rather inversion recurring and then going away. wework's parent company says a preliminary primary change is set for next week. amid questions of cofounder. futures hire 105. as you know, we are approaching record highs 27398 on the dow it is possible, the 13th with a harvest moon we could earn .6 of
1% we like records and big round numbers. they matter to a point do you think we will get there >> inking at new highs seems inevitable >> market feels like it wants it >> right you are seeing relaxation of trade tensions bond yields are coasting higher. that is for good reason. bond yields were really low. all of those arguments were like that makes things hire it is not happening. i think the broader question is how much do we believe that these trade tensions are going to just be faeding into the end
of the year. it is the unknowable answer. i would suggest that the very least, the history has been dynamic. >> we talk about it every day. i get that i'll take the other side the market is basically flat since the trade war was announced. >> would it have been up 20% it is not like we've collapsed on the trade news. >> no. from is a jadedness that has set in looking at the korean yuan there is a volatility exhaustion, if you will that sets in with some of this stuff. the other question is whether the ceo metrics in this country
and others have been plummeting. we don't know also if this market is going to be range bound does he use that as a license to push further. >> we've got a minute left on fridays. we like to find opportunity. are you still recommending silver and gold? >> careful ahead of the fed next week pouille could disappoint with rates higher i will say this, the trade i am very fond of right now is small caps >> i think there is more of that if rates continue to coast up, there is a lot of torque in that trade where small caps continue to out move large caps up 5% this week. >> if you look at the rotation
in small caps or into value, it is a rates trade if you think rates are going to be going hire, you need to overrate the small caps. >> michael, thank you very much. time now for your morning rbi. let's talk about streaming media. noting out a massive deal to create shows for its new streaming platform the latest of monster deals designed to make sure you stick around would you or have you constantly s subscribed, unsubscribed, resubscribe. you sign up, binge watch
something, then delete it and then come back again 51% of you say, yes, you have. how can anybody manage their cash flow when all of you come and go those streaming wars will get really interesting soon. i'm on assignment on monday. the show is here nonetheless have a good weekend. "squawk box" is up next. >> stocks marching higher, s&p less than 1% from record highs democrats face off we'll show you what the front runners said last night in houston on topics that impact markets and business community karl icahn heading south
moving his hedge fund to miami friday september 13, 2019. "squawk box" begins right now. >> announcer: live from new york where business never sleeps, this is "squawk box. >> good morning. live from the nasdaq market sight in time square welcome back we have on record watch this morning. dow and s&p both less than a percent away from notching highs. s&p down by .6%. looks like it would open by about