tv Squawk Alley CNBC September 11, 2017 11:00am-12:00pm EDT
some of the biggest leaders in the financial sector as the worries about the damage done by hurricane irma start to ease a bit. still a devastating storm, but estimates are less than they had been prior to this weekend, so watch those financials as these storm tracking estimates start to play out. that does it for this hour of "squawk on the street. let's send it back down on the street for the start of "squawk alley. >> welcome to "squawk alley. 11:00 a.m. on wall street. bonita springs, florida, i'm here in new york carl, straight to you first for a setup. >> reporter: yeah, thank you very much. i'm here at bonita beach on the gulf coast as we continue to watch these winds come out from the west on the dirty side of this storm of course, you and john ford back at post nine, david vickers at headquarters watching the weather for us and diana olick
is where the storm is coming in atlanta. first a check to david of the weather. >> we have been watching irma to continue to fall apart over the last couple of hours it's still packing winds about 60 to 65 miles per hour, but it is continuing to pass out of the region and starting to weaken through the next couple of days. i want to talk about what we've been seeing with irma here we're going to start off by talking about what the damage currently looks like you can see what the pictures looked like earlier, where we had strong winds as this came ashore into portions of florida with some very strong winds. right now it is down to tropical storm force. it is expected to stay a tropical storm force level for at least the next couple of hours and then as we head through the next couple days, we'll continue to weaken into a tropical depression. one of the concerns we've had is what's happening in jacksonville easterly and southwesterly wind, so it's packing the water up the st. john's river and leading to flooding in the jacksonville area right now
there is a flash flood emergency for the city of jacksonville jacksonville, as well. as i mentioned, currently a tropical storm, it will continue to weaken through the next couple of hours. early tomorrow morning, 7:00 in the morning, it will be down to a tropical depression packing winds around 35 miles an hour, so it will continue to weaken over the next couple of hours and we'll continue to track it for you. back over to you guys. >> david, thank you very much. david bigger at hq sarah and john, couple thoughts to kick off the hour few things going on that the markets are going to want to pay attention to most obvious one that you learned earlier today was the relief we got from lack of a storm surge of ten to 15 feet, which was estimated here, which would have been about the size of my head didn't happen, so you're seeing the rally and some insurers and a bit of a selloff in building materials as the rebuilds all along here are not going to be as big or as necessary number two, we're going to start getting some gas deliveries off
the tankers, on to the trucks at the port of tampa about 160 miles that way, so maybe gasoline starts showing up at gas stations around the state. people have more mobility. that's very good number three, power restoration. we just talked to tampa electric, who said that the degree of disruption, the degree of outages maybe not as bad as they would have had, had the eye been a little bit more to the west so we're going to be watching for, although the winds are gusty, tampa electric said you don't need the guys in the buckets up on the power lines necessarily. there's things we can do on the ground so, restoration of electricity to customers, those three things are all good it's a part of the reason the markets are rallying today, but we're, obviously, going to keep our eye on georgia increasingly, guys, which is going to be a big water event. >> carl, i guess we got to also keep the perspective we're rallying off of expectations of just a much bigger disaster.
irma still well within the top ten as far as destruction and costliness of hurricanes, and there's quite a lot of rebuilding and assessments still to do. correct? >> reporter: oh, there's no question i mean, even if you take some of these latest projections of damages at $49 billion, that's going to put you in the neighborhood of an andrew, for example, not a katrina, $130 billion. i think your point is a good one, john, but helps you realize as bad as irma is and was expected to be, it reminds you of just how expensive harvey is going to be. i mean, that's going to be $100 billion plus recovery affecting a lot more commodity, affecting a lot more petro chemical. this covers a much broader area, the wind field is bigger, so there's ramifications for retail, for instance, retail sales. the coverage is going to be broader than it was in harvey on
some specialty retail, for example, but no question this is not a toy. i mean, the damage we're seeing today is less than expected, but it's a lot more than it would have been under an ordinary scenario >> i'll throw another industry into the mix where we are seeing market reaction, as well, today, kau carl, and that's the agriculture economy. south florida is home to the nation's grapefruit and orange and avocado and tomato crop. more than half of the nation's supply actually comes from south florida and orange juice futures have been a barometer for this they are weakening down a little more than 3% after surging 12% on some of the worst worries that a lot of this crop was going to be wiped out. i guess we haven't heard anything as far as an update on the agriculture plan i know you talked about tourism as a main industry and some of the others, but ag is huge >> reporter: it is huge. florida's a massive producer not just for the u.s., but for the
world in orange juice. i think half of the grapefruit comes out of florida orange juice it rivals brazil in global production, but we saw those markets reacting early, sarah, back when irma was still a threat in the caribbean, so a lot of the markets have priced that in. i don't know if we want to go to diana olick in atlanta, but an increasing part of the story is going to be flooding and water jacksonville is a big story this morning. we're hoping that's not the case in atlanta, but diana, what do you see? >> reporter: well, at this point the storm is just moving into our area we're watching flights, 955 cancelled now, 30 in the last 30 minutes, that's one a minute an amazing stat here, since irma started messing with air traffic, over 13,000 flights have been cancelled. of course, atlanta is home to many large corporations, coca-cola, mercedes usa, ups they are all telling workers to work from home today, if they
can. they are also, home depot is the one big operation, they are trying to get as many supplies out to florida and georgia as they can today southern georgia being hit right now very hard with flood waters in savannah. also kia's only plant, which is in southern georgia, has closed for production today and tomorrow here in atlanta, they've closed down the government, closed down metro, closed down the schools and they are now opening up shelters while atlanta is landlocked, we're expecting a lot of rain to come in. not quite as much high wind as florida, but there will be a lot of rain in the area, so you can expect to see widespread flooding throughout and we do expect, of course, as this day goes on, to see many more flights cancelled. carl >> diana, we'll check in with you in a bit, diana olick in atlanta. we're going to bring in ceo of the spe hotel group, which has a bunch of high end hotels and clubs in miami, including the delano
he's at post nine with sarah and john sam, glad to have you with us. i wish i were there with you i got to ask you about some of the flooding we saw in downtown miami and in brickell, and i just wonder over the weekend if that kind of footage freaked you out. >> obviously, we've been tracking the storm for the last week, working very closely with local jurisdictions with the fire department, police department, mayor levine the biggest thing for us was safety for our associates, for the community, and i think we did a good job with that, particularly our team in south florida, we have eight hotels down there, was crucial and collectively the communication ended up to be a big factor in us not losing life, which was our number one goal. obviously, now, the storm is going up through jacksonville and our hearts are out through not just florida, but, obviously, what happened in texas and louisiana last week. so it's been a couple weeks of anxiety, seeing those rivers we've seen them before we've owned hotels in miami
beach now for close to 13 years, but this one was a big one this looked a lot more catastrophic and i think in many ways it was. when you talk about the caribbean and talk about really the people that got affected everywhere from the caribbean down to cuba and up to the west coast of florida so it's been hard. we're still dealing with it. miami beach is still closed, as you know, and we hope to get in there tomorrow to help the community again. >> yeah, glad you brought up the caribbean, because our thoughts go out to the british virgin islands, barbuda, bitter end, that's going to be a giant rebuild. how long lasting do you think the effects are going to be from a local business standpoint and from a tourism standpoint? >> i think once we get our grips on the effects of the human anxiety that this thing continues to pull on right now we're dealing with, you know, the motions of a lot
of our associates, a lot of our guests, but i think this will be anywhere from, you know, two weeks to a couple months from that perspective at the same time our assets in the bahamas and brickell may be a little bit longer. we're hoping to be back in business by the end of the week, but then again we have to get into these properties and really be conscious of the human toll this has taken >> sam, i'm wondering, how long does it take to really recover the tourism momentum from this sort of thing? are there promotions you tend to do because you're no stranger to tough weather, to disasters that hit this area. what's the process going to be like >> i think, you know, we are still assessing it right now different hotels got affected differently. we manage the raleigh hotel on 18th and collins, which got more damage than the delano, but for us, we're long-term owners and operators in miami and southern florida, so we've been there a
long time. our owners and associates, like you said, we've been there and done that before unfortunately here last year we had zika, hurricane matthew, so this is a part of the world that affects this and i think for us we're not really -- what we're looking to do is open up our hotels we feel around the world our hotels are part of a community and during disasters that's where everybody wants to come and congregate and if they've lost their homes and that's what our main focus is on the next two, three weeks and get geared for the high season in november and october, so our goal is to be back on track for that, but the interim goal is just assessing kind of the human toll that this takes. >> you got some prime real estate when it comes to south beach and miami beach, but it's right there on the ocean what is the level of preparedness of miami beach in general for these types of events >> i think the good thing about miami beach is through time they've put some amazing codes and zoning in, so, for example, the newer hotels have these hurricane proof windows,
hurricane codes that really kind of help keep these properties. because in south beach you're talking about the most historic art deco hotels in the world we're custodians of the hotels beautiful, beautiful architecture, they are a big part of the american history so our job is to maintain them ultimately we'll get back to the offer and the promotions as need be, but right now our main job is literally to assess what's happened we're still realtime we can't even get into the hotels right now >> sam, thank you for your time. obviously, our thoughts are with you and the city of miami and the state of florida, as we assess the damage today. sam, thanks again. sam nazarian of the sbe hotel group. john, over to you. >> thank you, carl with more on the recovery and relief efforts, we're joined by former fema director under president clinton james lee
witt james, good morning. >> good morning. >> i want to ask about small business there are all kinds of small businesses, whether they are operating in tourist attractions in that area who are really going to need to get back up and running for their livelihood one of the things that fema does is assist with getting people connected to small business loans after an event like this how quickly is that process really going to be available and what should people know about it >> well, first of all, if you're a small business owner and you had flood insurance, that will be a factor that you'll have to show and prove to sba. and then also sba, if you have an existing loan on that business and you need "x" amount of dollars to rebuild the business to reopen, then they can actually rework that loan and also the damages that -- money you need to repair the damages into a new loan at a very low interest rate so it's important that small
business owners that's been affected is to make that application to sba as soon as possible to get that in the works. >> and, james, there's been a lot of talk over the past few months after president trump put out his budget about just how much money is necessary for these types of events. there were some cuts proposed in this budget initially, i believe, to fema and the national weather service, for example. what is your take on what's really needed to prepare for events like this in the future and how being in touch with this and the real human toll may change our perspective >> well, i think it would be a terrible mistake for the president to cut fema's budget or any of the agencies right now particularly that's involved in the recovery efforts in texas, as well as in florida. you know, the department of agriculture is probably going to need supplemental just because
of the damage to the vegetables and fruits in florida and possibly in texas with cattle and other livestock, so the supplemental is going to be important. they are going to be without money in three or four weeks, because it will probably be over $100 billion in texas and yet to see what it will be in florida also the congress needs to reauthorize the national flood insurance program and they are probably going to have to increase the line of credit for the flood insurance program simply because of the floods in texas and also in florida. >> james, beyond the money and the claims that are, obviously, going to start to pile up, can you walk us through what it's like to be inside the fema war room right now how you get out on the ground after a hurricane like this when actually it's still baring down and try to assess the damage in terms of property, streets, ewe tulties, power, and everything
else take us through what that's like >> well, administrator brock long is experienced and i have faith and confidence in him, as well as the fema staff employees. they are dedicated about what they do and their jobs fema region four is probably taking the lead on this with florida and they've already prepositioned resources in to help the state of florida and governments and they were in the operation center during the hurricane, they are supporting them and state kez nighted what resources they needed, then fema has the ability to put the resources in place then the next thing is the local governments, counties and cities will be doing rapid damage assessment as soon as possible as soon as that's done, that goes into the state operations center, where the state and fema then can get a good estimate of what the damage is going to look
like in the early estimate then, of course, the state and fema will go out, work on local governments and get a better assessment of what it's going to take to recover. >> important work, crucial at a time like this thanks for joining s, james le witt, former fema director >> thank you still to come on "squawk alley," much more on tropical storm irma as it continues to press north. live updates for you throughout the hour then all eyes on apple ahead of its major product unveil tomorrow plus checking out stocks, broad rally on our hands this morning. all major groups in the s&p are higher dow is up 211 points there is an impact here from the storm. travelers company, for instance, is up almost 3%, it is dow leader hope depot down moalst 1.5%. back on "squawk alley.
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a rally for stocks to start the week we have the dow up triple digits all s&p factors in the green much is a reversal from last week it's being led right now by financials especially those insurance and reinsurers that are getting a boost off of perhaps some relief that some of the most dire forecasts in terms of the economy and the weather for irma were averted technology is also very strong the dollar's rebounding. it's up a percent against the japanese yen and treasury yields
are higher, john, with a ten year back above 210. again, some of the safe haven trades that were so hot last week are reversing this week, being given up stocks are in demand >> speaking of technology, a big day tomorrow, apple holding its hotly anticipated product event at its new headquarters in cupertino. a lot of talk about what we can expect from tim cook and company. josh lipton is outside of apple's new spaceship headquarters josh >> that's right, john. so right behind me here is apple's new corporate campus called apple park. 175 acres of parklands and buildings, and tomorrow is actually going to be the first time apple opens up this campus to the public. the event is going to take place at the new steve jobs theater and auditorium that can hold 1,000 people star of the show is going to be the new flagship iphone and here's what we expect, 5.8-inch iphone with edge-to-edge oled
display. no home button, instead using facial recognition for unlocking the device, advanced sensors and cameras and wireless charging. the price tag here, rbc says, $999 besides the new phone, we also anticipate updates to the iphone 7, a new apple tv with 4k support and new watch with its own cellular connection, meaning that watch would be much more of a stand alone device say you're on a run, you can send texts, receive notifications, even when the iphone isn't in range. investors clearly expected about these new products, especially the iphone's apple stock has now surged 40% so far this year. now, skeptics will say that stock surge already reflects a lot of the anticipated good news bulls are betting a big upgrade cycle is on the way and this stock could move even higher guys, back to you. >> josh, more unknowns than
usual heading into this announcement the iphone x, iphone 10, whatever the rumor is that it's going to be called this time, not clear exactly when it's going to be available in volume. analysts have been worried about that you mention how much it might cost, but also we expect, right, some more affordable iphones that are also somewhat new below it that's a lot of different things in the lineup than we normally get, right >> yeah, and i think you mentioned, john, a really important part we're so focused on iphone 8, as you mentioned, some are calling iphone x a really important issue that tim cook's going to address tomorrow is successors to the iphone 7, you know, what is he going to do to make those devices compelling, as well. there are some folks might not feel like paying $999, if that is the price, so what can you do to those successors to the 7 some analysts think a glass back, wireless charging.
we'll find out tomorrow. >> yeah, i think people are worried too much about the price here usually the first people to buy the iphone end up paying that much anyway because the cheaper versions with smaller capacity, can't find them anywhere josh, thanks >> apple stock up 1.5%, up 39% this year. second best performer on the dow to boeing, which is up more than 50 coming up, irma's impact on florida's tourism industry one of the most important for quk le wl e. "sawaly"ilbe right back [vo] quickbooks introduces jeanette
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names like the reinsurers across europe, the giants rallying twofold, two reasons being given as far as this global rally. some relief that the worst fears about the economic shock of hurricane irma did not materialize over the weekend there was also worry going into the weekend that north korea would launch another missile in honor of its anniversary, september 9th, that did not happen either way, it is being attributed to relief rally of sorts and a reversal of what we saw in last week's trading session. quick check on the currency here, particularly notable against the japanese yen, but it is happening against the euro, as well. that strong euro giving back a little bit of the strength it got way of the 120 last week, now at 119.80. the big event in terms of european central bank action this week will be the bank of england thursday, no change expected, but, of course, the deliberation over how much brexit is hurting that economy and the uncertainty around how this deal is going to look with
europe is front and center >> we continue to look at irma and the aftermath. coming up. walt disney world closing gates for just the fifth time in history as irma moves past florida. what the hurricane aftermath means for the tourism industry when "squawk alley" returns. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. becareally want to be there, but you can't. at cognizant,
here's your cnbc update at this hour president trump speaking at the pentagon on the 16th anniversary of the 9/11 terror attacks he and first lady melania trump were joined by jim mattis and members of his cabinet >> though we can never erase your pain or bring back those you lost, we can honor their sacrifice by pledging our resolve to do whatever we must to keep our people safe. >> a weakened but still danger tropical storm irma moving from florida into georgia nearly 1,000 flights at atlanta's international airport have been cancelled. augusta is housing thousands of evacuees and city leaders say they need help getting more donations for more supplies. the governor of georgia has declared a state of emergency for the entire state and kim jong-un appearing at a concert with his wife to celebrate that country's latest nuclear test the audience included people who
work in the nuclear missile program. you're up to date. that's the news update this hour back to "squawk alley" and carl in florida hi, carl >> hey, sue, thank you very much we continue to take stock of the recovery here. you can see by the people on the beach, life is looking like -- a little bit back to normal, as it was prior to the weekend, but, obviously, the recovery efforts are going to be focused on two big things, the return of power to millions of florida residents and customers and then, of course, getting gasoline into gasoline stations, which is going to start happening once the fuel is moved from tankers on to trucks, beginning at the port of tampa today. john and sarah back at post nine, john, you raised a good point this morning about everyone's talking about relief and not as bad as expected and no huge storm surge, but take a look at some of the numbers of hurricane costs over the past few years. there have been 31 hurricane
landfalls, ex harvey, since 1965 we're looking at about 520 -- about $520 billion in damages in 2017, and the losses this year alone are expected to exceed half of that so, this is really an extraordinary year when it comes to losses in hurricanes, no matter what we say about today's reality versus last night's expectations that's important to remember >> yes, indeed, carl and we've been asking specifically about the impact on small business i mean, clearly, unlike a lot of countries, we are blessed to have a lot of resources. some larger companies like the walt disneys that we talk about have a ton of resources, but small businesses that operate, tourism perhaps out of boats, a lot of those where you are in florida. one has to wonder about the loans that they are going to
need, about the recovery efforts that it's going to take for them to get back on their feet. carl >> yeah. we're going to talk to the small business administration in a few moments about exactly that, how some of these small business owners may apply for assistance. of course, we have reporters covering all of this, all angles as it relates to the markets, whether it's tourism or damage in miami or logistics in the ports, but julia borstin is reporting on the theme parks and the media business exposure in the state. julia is watching that from out west hey, julia >> hey, carl walt disney world, universal studios, seaworld, all of which closed yesterday and today are assessing damage ahead of plans to open tomorrow disney world, which is closed for only the fifth time in its history due to hurricanes said while we experienced high winds and rain, we maintained power throughout the storm going on to say we are keeping safety top of mind and working closely to determine when
conditions are clear to make further operational decisions. universal saying, "we'll be following our procedures and conducting detailed inspections across our entire destination in preparation for an anticipated on time opening tomorrow morning. now, barclay's analysts estimate disney world will take a loss of $60 to $75 million, also predicting universal orlando will see a roughly $20 million hit to operating income. as we hear more from the parks, we'll have a better sense of the hurricane's impact on tourism in florida. tourism is florida's largest industry and it hit a record in the first half of this year. carl >> julia, yeah, it's fascinating. it is a reminder, you know, we spend so much of our time, especially in this hour, talking about subs and the threat of ott and the encroaching online streaming business, but there's a tried and true bread and
butter tourism business to old fashion theme parks that still accounts for a sizable piece of operating net income >> absolutely, and if you look at the parks division's both universal studios, as well as disney, they've been doing phenomenally well. disney is planning to open a star wars theme park, both in orlando and here in california they just earlier this year opened the pandora, the avatar themed world in orlando, and analysts are starting to analyze sort of what the impact is going to be of the storm, and they do believe disney is still going to see growth in the theme parks division, though it will probably be smaller growth due to the impact of this storm. sarah, back over to you. >> julia, thank you. 113 million tourists visiting the state of florida last year julia on the theme parks for more on irma, the recovery efforts and potential economic implications joining us by phone, former under secretary of
security john foersman, also joining us matt rogers, cofounder and president of commodity weather group. thank you both for joining us. george, we talk about irma and carl made the point it is already becoming such a costly and destructive and dangerous season between harvey and irma, and we've been watching jose over the weekend, and hurricane season goes, i believe, through november does the fact that harvey is still in clean-up mode very early stages make it that much harder to get responders and resources to florida >> sarah, i don't think it's going to impact the ability to get the responders to florida, but, you know, the cumulative effect of all of these storms can't be underestimated. we're not even 24 hours in to the end of storm in florida, and, frankly, they've got to assess 66,000 square miles of impact zone. and i think, you know, part of the caution is we don't know what the true cost of irma is
going to be at this point, but getting back to your question, there are going to be sufficient personnel to be able to do everything that needs to be done, both in the response and recovery phase, but we shouldn't underestimate the impact and long-term challenges here. >> matt, what can you tell us about how the rest of the season is shaping up, if there are other storms we should be watching >> yeah, september 10th yesterday was the peak of the hurricane season, so we were right in the middle of it, basically. as you mentioned before, it runs through november, so we still have a lot to watch in the weeks ahead. there is a hurricane jose out there spinning around in the western atlantic a few other models had been flirting with the eastern seaboard early to middle next week, but we can't put a lot of faith in that forecast at this point. but it is still pretty active time of year, so we're going to have to keep a close eye on jose, as well. >> matt, what's your take on the agricultural losses? how they look so far, and how
they may have faired based on what the storm track actually has been >> yeah, the storm track shift really wasn't as bad as it could have been in florida, basically. it interacted with cuba over the weekend, it took the left side of the coast instead of the populated east side. it also made landfall sooner, so it weakened faster for central northern florida, so when you're talking about citrus, we were thinking going into the weekend maybe a 30% loss estimate on florida citrus and now we're down to 10% to 20% this morning. my colleagues at the commodity weather group, about 5% losses for sugar and up in georgia, cotton, soy, peanut, maybe about 10% losses up there due to this storm. so, they are losses for sure but not quite as bad as we were originally expecting >> and george, as we talk about this sort of increased pace of hurricanes at least this season and recent years, i wanted to ask you how prepared we are. it does feel like authorities got ahead of this one. they issued mandatory
evacuations. they actually had some pretty dire language and warnings when it comes to the storm's path on direction. the forecasts weren't exactly accurate it did feel that florida was as prepared as it could have been is that the right assessment here, and what more can be done? because clearly when it comes to harvey, the flooding was a big surprise and caused a lot of destruction. >> yeah, sarah, and, you know, arguably florida coming off the lessons from hurricane andrew in 1992 is probably the best prepared and most hardened state in america when it comes to readiness for hurricanes and clearly the state and local officials did a great job in getting the word out they used dire language. the nature of the weather forecasting is it's not a perfect science, you know, storms are their own animals, they are going to follow a path that they choose to follow the models give good predictions, but, you know, i think this really gets the big challenge, state officials, local officials are criticized
when they are too timid. there will be those who will criticize putting 6.5 million floridians under mandatory evacuation orders, but, you know, at the end of the day the most important thing that those officials had to do is protect lives. property is second, but clearly we're better there's more work to be done, but if it you're going to have a storm like this, florida is probably the place that you want to have it but if you're the disaster victim, whether a small business or individual home owner, if you've been affected by this disaster, this may be the most significant disaster and it's the biggest thing in your life and we can't forget that >> thank you for joining us today. again, of course, our thanks to matt rogers, as well, from the commodity weather group. >> let's get back out to carl quintanilla in bonita springs. carl >> hey, john, i want to bring in james rivera, small business
administration office of disaster assistance, associate administrator there and expert in disaster declaration. james, thanks for your time today. we were just talking about the kind of year it's shaped up to be and the season, which is not over by a long shot. and i wonder if requests for assistance, we may have a lot of viewers who are small business owners or family members of some is this year shaping up to be an outlier for you, as well >> noaa did a good job of predicting an above average year of disaster activity from a hurricane perspective, so we didn't expect this level of activity with harvey and irma, but it was predicted by noaa this would be an above average year from their perspective. >> what has changed now? if i'm filing for assistance in the wake of harvey or irma, what's different between that and a request i might have made post katrina or andrew in terms
of rates or credit requirements or even the speed of with which i might get a loan >> technology. ten, 12 years ago to today first of all, i would suggest everybody, whether you're a home owner or business owner apply with fema through disasterassistance.gov or 1-800-621-fema, which is 3362. a big secret in the disaster world is fema will provide the grant assistance initially and they refer home owners and businesses to sba so we can make them a low interest long-term loan >> when you look at some of the projections for storms, some of the studies that look at rising sea levels, and then couple that with the news we've gotten about, say, fema's budget for the year and the constraints on that just this week alone, is there some point at which sba or
fema distance ends or just becomes cost prohibitive to provide? >> no. i mean, i can speak on behalf of the small business administration, we're an independent agency we have currently $3 billion in loan authority and then congress is in the process of putting a supplemental through, which will provide us with another $2 billion. congress and the administration have been very friendly to disaster survivors, so funding usually hasn't been a big issue from the type of assistance that we're providing, the low interest long-term loans the same with fema grants and any subsequent assistance that's provided >> that's encouraging words to people who might be affected by this storm luckily for the gulf coast at least, we expect that number to be less than it might have been otherwise. james, thanks very much. good information james rivera of the small business administration. john and sarah, guys, over to you. >> watching this market rally, carl, the dow is up more than
230 points right now we are on track for our best day for the dow since late april that's more than 1% gain almost every dow stock is higher notable exceptions include home depot and caterpillar. rick santelli, what are you watching today >> you know, yields that move up a bit, we have options this week $66 billion, will we get clues for the results? that's what we're going to talk about after the brk.ea can we at least analyze customer traffic? can we push the offer online? legacy technology can handcuff any company. but "yes" is here. the new app will go live monday? yeah. with hewlett-packard enterprise, we're transforming the way we work. with the right mix of hybrid it, everything computes.
coming up at half-time at the top of the hour, stocks are surging today and now positive for the month. is the rally here to stay? plus, what we already know about what apple may deliver tomorrow and what it all means for the stock in the weeks ahead jean muenster with us live today. and the one tech giant options trader say is about to get a pop. unusual activity and, of course, the latest on the massive power problems down in florida half-time report noon eastern. sarah, see you in about ten minutes. seench >> see you then, thanks, scott rick santelli with the tenure back above 212 rick >> absolutely. as a matter of fact, we now see that yields on three-year notes are up one basis point tens have moved from 211 to 212. long end 30-year bonds move from 272 to 273 why am i making such a big deal? well, for several reasons.
first reason, basically yields popped up before the openings here and they've stayed. they've hardly moved at all. now they are creeping up higher. and what's fascinating here and i want you to look at several charts while i'm talking, today is today is a three-year note auction, 24 billion. tomorrow 20 billion and wednesday 20 billion and cumulative 56 billion in coupon supply as you look at a chart starting in november for three-year note yields, something interesting. if you'll in the, yes, everything has been moving lower, but the short end, three specifically did not make a new low yield close for the yore that's still the established 135 from i believe it is the 18th of april of this year now, as you look at 10s and look at 30s, what you'll notice is, of course, they have made new yield closes for the year, all going back to right around the election so, remember we've seen t-bills and cash management bills prior to the signing of the deal for harvey
aid and extending debt ceiling issues those yields rose. there's lots of clues. as to demand and strategy you can garner from auctions this is no exception so today's three-year note yield and 10s and 30s have a concession right now meaning that if you are looking to be long and watch rates go down, rates have reversed. that's a concession, so the demand for this auction should go well if the strategy is that you expect lower rates, and that's what we may learn, especially when we get to the 10s and the 30s tuesday and wednesday. let's remember a couple other key points as well when we talk about the flight to safety, it's very hard to distinguish, especially on the dollar and on fixed income is it night to safety, or is it just all the arbitrage because of rates being lower around the rest of the world? there arer other currencies being a little more favorite at this time, i don't know, but i can tell you this. if the long end auction dozen not go well and give us more
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still a top priority for florida in the wake of irma. our jackie deangelis is at the port of palm beach jackie >> reporter: hi, jon well, this port is crucial because it's the fourth largest in florida, and also it sees about $7 billion of commodities in its water each year 80 are exports, and that's important because right now this will be the port that sends a lot of supplies to the caribbean, those who were hardest hit potentially by the impact of this storm and have been waiting for five days for simple things like food and water. meantime, florida power, that's another issue, too about 6 million resident are without power at the moment. obviously the authorities and the utility companies are working as hard as they can to try to restore it, but they also say it could potentially be a few weeks before that mother is restored 70% of palm beach county right now is without power as well last point i want to make here
people are keeping an eye on some of the commodities that come out of florida as well. citrus specifically. it's a multi-billion dollar industry in florida, and florida supplies more than 50% of the u.s. supply in oranges people will be watching sugar cane as well. >> we'll continue to watch that. dow and s&p near session highs and the nasdaq up 1% that's it for "squawk alley" and now back to headquarters and "the half. >> and welcome to "the halftime report." i'm scott wapner top trade off and running. why stocks are surging today and whether calls for a coming correction are overblown with us for the hour today, joe terranova and the brothers najarian we do begin with stocks in rally mode each of the major averages up sharpl