Skip to main content

tv   Worldwide Exchange  CNBC  March 27, 2019 5:00am-6:00am EDT

5:00 am
5:01 am
5:02 am
>> we'll get more on mortgages and housesing a bit later on in the program. two-year yield going the other way, down three-tenths right now, but we're at 59.73. we were above 60 earlier supply fears particularly out of venezuela and iran sending a market a bid into the crude oil market brent crude at 68 .10. best start to a year for oil in a number of years. let's go worldwide now japan did fall a bit there was new data out of china. industrial profits there saw their biggest drop since 2011. sounds like bad news look at the shanghai composite .8%. because of all the government stimulus, investors simply shrugging off the data point sending shanghai higher as well. the major european markets kind of like our futures. not a big move
5:03 am
they are mixed u.k. is up italy up fractionally. germany and france are down. with so much going on around the world, why don't we tie it all together and figure out where we may be going we are pleased to welcome back megan green, chief economist good to see you. i guess here's the trillion dollar question, which is does this inverted yield curve from the three-month bill and the ten-year note here negative rates in germany, negative rates in japan, do those moves signal global recession fears for simply some kind of a technical change in the way buyers and sellers are operating in the bond market? >> look, so that is the question you can argue that the yield curve is invert and it doesn't actually reflect anything about u.s. or global growth, so you can say the short end has gone up because the u.s. is issuing tons of t-bills to finance the spending bill. you can also argue that the long end has been held down partly by
5:04 am
low rates elsewhere, but also partly because deflation is a tail risk in the world we're living in. long-term bonds are really great equity risk hedge. that could be why the yield curve is inverted. i think it's a nice akic debate. i'm sympathetic to that argument i think if every investor thinks that a yield curve inversion results in a recession, they'll behave accordingly, and it will end up becoming a self-fulfilling prophecy i do think a yield curve inversion will probably lead to recession. now, it's invert from a nanosecond i do think it needs to be more sustained to be more of a signal >> let's clarify that again. if we get another inversion, like you said, we had one for a blip let's say we get another inversion. does that signal imminent recession this year or is this going to be a slow burn out a number of quarters >> you're asking the right question the yield curve inversion is a signal the recession is coming it tells you nothing about when a recession is coming, and so i think to figure out the timing, we all need to look to chooirn if you believe that the stimulus
5:05 am
in china is going to be through into the economy and there are already some indicators that it's doing so, then that should really buoy europe and japan and should help out global growth as well if you don't think that the chinese stimulus will work, i think the recession could come much sooner. >> will it >> i think it will i think chinese officials are going to do whatever it takes. sort of mario draghi style we've already seen about $500 billion in fiscal stimulus measures, and they're not done yet. i think it's very unlikely that china stimulus won't work. i think china will be reaccelerating and probably booming by the end of the year >> you know, ironically, it's the biggest risk out there, megan. maybe want the yield curve, but to everybody that is watching cnbc around the world right now, because they hear that seven out of seven of the last recessions were preceded by then inverted yield curve. if we start behaving as if a recession is coming, september
5:06 am
there a risk of sort of a global self-fulfilling economic prophecy >> that's right. if the markets decide that they are intent on making a recession happen, they can absolutely do that we saw that last december with the significant equity market correction i do think that's true fundamentally we are seeing a slowdown in global growth everywhere but china where we're seeing a reacceleration or will be by the end of the year. everybody is slowing down. there's a lot of room to slow down before you get to a recession as well. an inverted yield curve is also difficult for the banks. they can't benefit from a carry trade anymore. that could constrain lending, and that could be through into year growth as well. an inverted yield kuv is both a signal, but also maybe a cause of a recession
5:07 am
>> he is calling for a rate cut and soon is that the right move is he the right man? >> so i would disagree with that move i don't think that the economic data suggests that we need an economic -- a rate cut if you look at real rates actually we're still well in accommodative territory. real rates are .5% that is accommodative. i think there are real questions about how qualified he is, his understand willing of the fed's balance sheet in particular, but i do think that he has been a cheerleader for trump, and i think that is mostly interesting. trump is so far pretty much left the fed alone in temz of personnel, but it seems like this is the first indication that he is trying to get his men in there >> we got you on for london. we ask you to stick around for the next segment can you sit tight? i want to come back and have big brexit questions
5:08 am
>> fraipg holland has that with another headline >> good morning, brian a southwest airlines 737 max jet had to make an emergency landing in orlando after pilots reported aneningin problem. the plane did not have any passengers on board. it was being flown to a storage facility in california southwest says the problem was not related to the plane's computer system that's been under a lot of scrutiny following two deadly crashes in recent months. officials from the faa and the ntsb will be on capitol hill today to testify on the boeing 737 max. we're going to hear more about the hearing from senator ted cruz who will be on "squawk box" at 8:30 a.m. eastern mixed ruling in the ongoing qualcomm-apple saga. an import ban on some i phones was recommended by a u.s. trade judge on tuesday the judge found that p ale infringed on a qualcomm patent related to smartphone technology however, that ruling is not
5:09 am
finding and will be reviewed by the u.s. international trade commission before a final decision is made >> the big change coming to the big board. that change takes effect next month. brian, back over to you. >> frank, we'll see you in a few minutes. still ahead, the brexit battle continues. prime minister theresa may said to address lawmakers there later today and possibly laying out her own exit date. plus, a market story you have to hear why one of the most important sectors is offer to its most negative start to a year in six years. later, we are counting you down to the best and worst airports for business in america.
5:10 am
the denver international airport fewerer than 1% of flights are canceled denver, number four. count you down three, two, one all hour as we roll on right after this the biggest week in television is almost here.
5:11 am
5:12 am
xfinity watchathon week. starting april 8th, enjoy free access to the best shows and movies from hbo, showtime, epix and more. what! whether it's more jaw droppers, standing o's upon standing o's or tv's biggest show stoppers. get more into what you're into. get ready to watch with xfinity x1 or the xfinity stream app. xfinity watchathon week. free starting april 8th. boop! welcome back 9:12 a.m. in london are there is not one big brexit moment today. british lawmakers instead are
5:13 am
gearing up for what will be a series of votes. one that will culminate for the exit date for theresa may. willem marks is live in london with more. willem >> thanks, brian one of the things they'll definitely be voting on today is changing the formal legal exit date from march 29th to either april 12th or may 22nd in terms of what else is going on against very complicated, so bear with me essentially on monday night parliament voted to take control of the legislative agenda for several hours this afternoon what knee done overnight is put together 16 different opgs, essentially 16 different shades of brexit, if you will everything from reversing brexit overall to leaving with no deal as soon as possible. what they're trying to do in a
5:14 am
series of votes on cher gets selected is figure out where there's a majority, where they can find consensus they'll be given a piece of paper this evening after debating this for several hours, and they'll be asked to check boxes yes or no based on the various options. this is an unusual process for the british parliament and what they're trying to do is find some kind of breakthrough based on all the deadlock, all the confusion we've seen in recent months, but at the same time some people getting concerned that this might lead to a soft brexit and theresa may, the prime minister, is hoping that will allow them to sit back her deal in terms of the very position, just finally worth adding there have been rumors, many of them pushed by members of her own conservative party she might be willing to offer a resignation or the pass date for herself as prime minister if that is sufficient to get her deal >> willem, it's hard to keep track of all the votes rsh there
5:15 am
are so many. are there any that stick out to you either today or over the next couple of days that are really the ones to watch it just seems like every day we're getting an update, but it's kind of hard to keep it straight >> these votes today, this is where it gets super complicated. these are not legally binding on the government these are going to be very politically relevant, important. they'll put a little bit of pressure on the prime minister and the government to follow them even though they might pursue a former brexit that she doesn't like. the next few days, there's a lot of moving parts, but by monday next week wecht get a clearer sense of what the parliament wants to do with brexit.
5:16 am
>> willem, thank you very much >> let's bring back megan green. i it may be even the start of much harsher negotiations. how come >> well, what they're trying to agree right now is how to leave the e.u. once they finally agree on that and leave, they have to renegotiate their relationships with every other country that's going to be much more difficult and take much longer as we're wrapped up in the day to day minute to minute of brexit right now, it seems impossible this is supposed to be the easy part, trying to figure out how to leave >> okay. aside from brexit, the u.k. economy right now is part of europe we talked a lot about the global slowdown, the european slowdown. where is the u. k. economy right
5:17 am
now? how is it doing outside of brexit because that just seems to be a big thing hanging over it not everything right now we've seen brexit slow down, and that's largely through the labor supply there are two ways to fundamentally booths your potential. one is through productivity growth, and no one in the western world or the developed world is seeing any productivity growth the second way is to boost labor supply because of brexit, the u.k. labor supply is falling. >> megan green, asset management, real pleasure to see you on hope to see you again soon thank you. all right. when we come back, a potential medicaid powerhouse in the
5:18 am
making two major players reportly looking to join forces plus, can one homebuilder buck the trend in what has been a mixed bag for housing? diana will join us, and we continue to count you down on the top four airports for business travellers as ranked by fundera. deny ver fourth best coming in at number three, dfw dallas-fort worth. more than 260,000 flights a year 80% on time departures, and a hotel attached directly to the airport. top two are ahead as we roll on right after this termites.
5:19 am
5:20 am
we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home. guys go through a lot to deal with shave irritation. so, we built the new gillette skinguard with a specialized guard designed to reduce it. because we believe all men deserve a razor just for them. the best a man can get. gillette.
5:21 am
>> to come futures not giving us a great indication of where the markets are going to head today. they are in the green. futures were wide open nasdaq and s&p up as well. really the big story to watch has to be two things bonds and oil. we know what bonds are doing thooif caught a big and benchmarked ten-year yields at 2.38%. oil, the best start to a year in many years for crude oil were just under $60 a barrel right now. we have seen really a bid come into oil apart for a couple of reasons. despite u.s. output continuing to rise, supply cuts, inventory cuts, export cuts out of venezuela and iran have put a bit of a floor under oil right now. crude oil just under $60 of course, you may not buy oil, but you probably use a little bit of gasoline.
5:22 am
gasoline futures also having one of the biggest years oil stocks a bit on fire the average return for a big cap stock, the exxons and chevrons, is an 18% gain year-to-date. remember, we spoke to their ceo a couple of weeks ago. that stock up 50% just this year even the worst performer among the mega caps, royal deutsche shell is up 8% it's been a good year so far for oil stock investors. let's get a check on some of the other big stock moves today, including wb homes revenue did fall, but sales in southern california were hurt by lower demand from foreign buyers the company says the conditions have started to broouf in january and february and it does expect higher selling prices this quarter that stock up 2% well care, that stock up well more than 2% shares are surging today on reports that it's an advanced talks to buy well care
5:23 am
shares did fall yesterday after the trump administration held a federal court that obama care should be struck down. both these companies could rely heavily on obama care for their membership we are seeing well care stock up 12% right now. renault apparently aiming to restart merger talks with nissan financial times reports that after this deal, should it happen, the combined automakers then could set its sights on a bid for fee yacht chrysler wow. all three companies are not commenting, but the move would signal a return to the strategy sought by former nissan chief carlos ghosn renault and fee yacht higher meantime, in political news, what apparently is old is new again on capitol hill. nbc's tracie potts is live on capitol hill to explain. >> good morning. you were just talking about this bid by the trump administration.
5:24 am
congress has tried to get rid of the affordable care act. the justice department is now getting involved >> it's a new battle in the war over obama care. >> the party of health care. >> if that is true, god help middle class americans >> the justice department has told a federal appeals court it supports getting rid of the entire health law. not just pieces of it. 28 million americans could lose coverage >> the gop will never stop trying to destroy the affordable health care of mesh's families >> republicans say they're fixing it. >> we want people to have more frooemt freedom, to choose the things that are best for them and their families what is happening for families today is that they're seeing double digit increases >> democrats are pipping a plan to make more middle class families eligible and give insurers more money to cover the poorest and sickest patients it's not expected to even get a vote in the senate controlled by
5:25 am
republicans. at risk if the affordable care act goes away, insurance for preexisting conditions and adults under 26 years old. >> they get sick they're not going to lose their coverage >> there's still no plan to replace it >> the administration says so far this year 11 million people have signed up for those exchange health plans. >> tracie potts, good to see you. thank you very much. now let's get a check on the morning's other stopszs outside of the world of money and business francis riviera in new york now with those >> hi. good morning to you. flz there's a major dwom that's captivated the country chicago prosecutors have dropped all 16 charges against empire actor jussie smollett after he was -- prosecutors dropped all the criminal charges in ebs cha exchange for two days community -- they left both chicago's mayor bewilledered and angry. however, the legal trouble for
5:26 am
smollett is not over federal investigators are looking into alsos the actor mailed himself a fake death threat. combatting one of the worst measles outbreaks in the country. after a record 153 cases since october, rockland county has declared a state of emergency that essentially kwaurn tees miners who have not received a vaccination. gator on the green an enormous alligator interrupted a game of golf in georgia this weekend golfers at the club golf course in savannah harbor were stunned by its size. the fact that it was even there. an eyewitness he didn't even bother to pull the flag.
5:27 am
thank you. all right. on deck a big shift in corporate policy coming from the golden arches then fallback and spring ahead maybe no more. what a number of countries in europe are hoping to do by 2021 that many of you, no doubt, would like to see happen then, we are closing in on number one, the five best airports for business travellers number four, denver. number three, dfw. coming in at number two, as ranked by fundera, hard to believe, but ord, chicago o'heir,fundera canceled flights. nearly 320,000 departures a year somebody call phil lebeau. what is the best arpt for you? the business traveller we have to stickrod fd t. auntoin
5:28 am
sometimes a cough gets in the way of a good night's sleep. that's when he needs vicks vaporub. proven cough medicine. with 8 hours of vapors, so he can sleep. vicks vaporub. goodnight coughs.
5:29 am
5:30 am
is there trouble in tech land we have 31 reasons why tech stocks could be in for a rough quarter. we'll explain. love it or list it you're looking to sell your house this spring, you better put up that for sale sign by next week. diana will tell you why. a double dose of ipo news. we're talking rides and rest all that and more as worldwide exchange roll on right now ♪ kicking on your wednesday with a little van hagar. i'm brian sullivan as always, let's kick off the
5:31 am
second half of your show with your executive recap frank holland with these stories. >> here's what's leading c nns.com right now. a southwest boeing 737 max 8 jet being flown and moved to short-term storage was forced to make an emergency landing in florida yesterday. this after the two pilots aboard reported a performance issue with one of the engines shortly after takeoff. no passengers were on board. the global fleet of 737 maksz jets was grounded indefinitely on march 134th top aviation regulators will testify on capitol hill today in the first of what is expected to be many hearings on airline safety and we will hear more about today's hearing from senator ted cruz he will be on kwaus "squawk box" this morning at 8:30 a.m. eastern. trump's steven moore said the central bank should cut interest rates. comments to the "new york times", moore add thad he does not see himself as a fan for trump or i adove on monetary policy
5:32 am
big changes coming to the big board. dow will replace dow dupont on the dow jones industrial average. that change will take effect on april 2nd. a bit of a who's on first situation. >> say that again three times fast dow ink replaced dow dupont on the dow jones industrial average. zoo perfect. we got it. we'll see you in a few minutes thank you. >> thanks, brian here's how your investments are looking. stocks gaining a little steam. no big gains on the futures. a lot of the global recession fears are still there, but you kind of have this fed put. one of trump's nominees stechk moore calling for an imminent rate cut you have the fed sort of thing under the market, which, by the way, look at the bond market the benchmark ten-year is back at 2.38% you remember about a year ago a lot of folks on this network saying we're going to see yields of three if not 3.5% the exact opposite has happened.
5:33 am
2.38%. good news for home builders and home buyers. probably we'll get more on that in a minute. in the asian markets kind of a mixed trade. we had bad data from china industrial profits falling the most since 2011, but again, a stimulus plan at work there, and investors actually bought the market on the news shanghai up about 1 % as well. in the european trade, the trend that we have been seeing slight green on the screen france is up germany is up as well. very fractional gands. >> you can read this widely read story right now if you haven't already on cnbc.com. in the meantime, let's bring in sofia at direction they are cutting the revenue guidance or downgrading expectations the most in six years in technology the most important segment does this worry you?
5:34 am
>> it worries me, but it doesn't completely freak me out. you know, it makes some sense. the last two earnings quarters have seen tech companies coming out and telling us that they're revising guidance to the down side, and the reason why is because of slowing global growth you have higher input costs. you have higher labor costs. margins are lower, and there's sort of this global back drop. the china thing is huge. i think apple over the last two quarters had talked about 15% to 19% earnings improvement within those regions. that's completely cut off right now and slowed down because of china slowdown and also trade negotiations i think that tech is going to slow down. it's also a volatile sector and high beta play towards the end of economic cycle and a potential slowdown, those names will be get heard than others. >> you don't think -- it's 26% -- according to bespoke. aztec goes, in many ways, so goes the market. it sounds like you're not
5:35 am
freaked about that >> i'm not freaked the reason why is because we saw the inverted yield curve we had the fears of a recession coming even if that held up and that did forecast a recession i don't think it does if it does for a day or two lease say that predicts a recession six to 24 months ahead of us, we've got six to 24 months we expect positive gdp, slower gdp. 2.1 versus 3.1, and we expect high digit or mid to high digit, you know, earnings growth. i this i that it's a little bit different than it was before because the fed is so dovish and there are some green chutes coming out of europe and china there's time that it's coming. >> there's multiple ways to look at a cut i'm getting cut to a b-plus, it's not terrible. you go from an a-miebs to c-minus or b-pluses, that's bad.
5:36 am
cut but not severe >> we're going to go from an awesome tax cut regime, which is now gone first quarter, an a to a c, and second, third, and fourth quarter, it's an a it "b i still think you can essentially have potential gains in equities over fixed income this year. you know, before we hit a recession. i'm looking at tech. >> you know, what direction you have the etf's, and some people have criticized because they've enabled people to gamble in certain sectors. that aside your three times bull direction etf is up what this year >> 56% tec -- >> hardly the end of tech. >> wriesht. >> are you still seeing people making those bets, those big outsized levered bets on technology >> i would say more than ever. >> more than ever? >> tech is one of them sort of why? well, tech has different faces software is a part of tech that that is supposed to have 10% revenue growth, and that's a
5:37 am
big -- those are big components in the index apple has done well. that's a big compoen ebt in the index. that's pushing our etf up. more than ever, i say more than ever because places like china, you mentioned it earlier, there's a lot of pboc stimulus going into the market. there's sort of margin cuts. the government there is really stimulating. if we have positive results there, we've seen 150%, 200% volume increases, 30-day adv increases in our china funds over the last month because people are looking for short-term opportunities before the market slows down. >> that sounds like another segment with you to talk about china outside of technology.
5:38 am
they are opt knicks on boeing and see the stock potentially marching back to $500 a share. the analyst at citigroup points out the stock will not work until the 737 max is once again here to fly. that could take weeks or months. citigroup not expecting the stock to move until the 737 max is back at sky, but they are reinstating their buy rating on boeing this morning. not helping right now boeing down .6% that call just crossed moments ago. all right. time for the morning's top trending stories mr. holland is back for those. frank. >> perfect segue we're talking about airports denver coming in at number four. dallas-fort worth at number three. chicago o'hare, the runner-up and time for the big reveal.
5:39 am
drum roll. the number one business for business travellers. atlanta. on-line small biz marketplace fundera raip ranked their decision on factors like ease of internet access, proximity to downtown, and more by the way, the worst airport for business, palm beach international in florida >> atlanta's hartsfield also the busiest airports in the united states as well they're doing something right down there in georgia. >> chicago o'hare was a surprise to me because it's not close to downtown, and i find it to be a maze, hard to navigate i have been there many times a little bit of a surprise >> a surprise to a lot of people palm beach, not a great airport. great place to be. mcdonald's says wage increases should be phased in, and in all industries, they should be treated the same way there's been a lot of heat on mcdonald's in recent years
5:40 am
bernie sanders called them out and said they weren't keeping up with the times again, a really big about-face all around the country, we're seeing this push to raise those minimum wages and pay workers. >>ist coming you can realize the battle has already been lost. >> this one. very controversial european parliament overwhelmingly aproouflg a measure to abolish the twice yearly time change by 2021 the lawmakers have not yet decide odd whether summer or wintertime should be adopted as the standard time. more negotiations to follow. i always want to spring it back. i want to stay in the summertime >> there's a lot more to that. don't end daylight-savings time. use it or saving time. i think it's single digular as the standard. >> i want to go back. >> yeah, i want that extra hour. >> you can never go back, frank. >> is it fall back >> you never go back >> you never go back home. >> always move forward >> next, a sweet spot for housing. if you are looking to sell your
5:41 am
home this spring, you wetter list it by next week literally by the end of next week diana is here now to explain why. plus, an ipo double play we're talking cars and naps. not at the same time stick around no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.
5:42 am
5:43 am
5:44 am
price and shares above the targeted range at $62 to $68 a share. lyft expected to make its public debut on friday under lyft also, casper reportedly reporting plans to go public the mattress company is looking to hire underwriters to an ipo the company cited $the 20 million and thelatest round of funding. by the way, coming up in you are yoo morning rbi in a few minutes, we're going to name names on the says best performing ipo stock in the past year. >> kind of a mixed back. kb continues to grow communities
5:45 am
now offering smaller floor plans at a lower price also, if it actually outperforms in california, which is very tough, we saw some international buyers pulling out, but already the average selling price is down 5% to 370,the00 that's a good sign jeff metzger said the orders during the fourth quarter impacted our housing revenues, we are encouraged by improving market conditions, which we believe should enable us to generate stronger revenues in the 2019 second half now, on the analyst call, he said as we look at the health of the u.s. economy, it remains on solid footing. he also pointed to improve the affordability, thanks to lower mortgage rates and home prices cooling. now, we'll get lennar in about an hour or so, and we'll see if they're saying the same. also, that's really the hope for spring is that this new normal of falling rates will juice what some still think is a weak market we get the mortgage applications data out at 7:00 a.m those are weekly, and they should reflect the big drop in rates that we saw after the fed
5:46 am
meeting last week. lots more data always more on housing >> all right we do have a lot of questions. first one is this, diana are you ready? zwlo i'm ready >> why did housing starts numbers fall so much >> well, depends on who you ask. some say that it was because they shot up very high in january, and then they had nowhere to go down but -- to go but down in february the end of the year was so very weak in sales that they were stuck with a lot of homes on their plate, and so they said maybe we need to drop off. >> mortgages loosely tied to that rate. mortgages have been coming down wide >> sharply >> by how much and is there any down side to those lower rates? >> well, you know, if you're a buyer, you are saying great. if i was looking in november, i
5:47 am
had the 30-year fixed just over 5% now we are hearing 4 or getting closer to 4%, and the mortgage i'm talking to, the guys that do all the numbers and watch this stuff, they're doing three potentially coming soon. three -- i'm just quoting. >> 3.99. >> we were there a couple of years ago, and everybody re-fi'ed around 3.5% it could be coming down even lower. what's the down side we have seen home prices cooling off, which is a good thing because they were so overheated. now if you have rates down again, gives people more buying power, more competition. everybody is thinking should i boy a home this spring now that rates are so low should i jump in that could bring the price back up >> answer the question that we have been teasing all show long. >> i love this one >> it's weird. why do we have -- if you want to sell your home or have the best chance, why do you have to list your house by next friday at the latest >> okay. i've been doing this beat a
5:48 am
really long time i'm not going to tell you how long, but every spring you get these pitches from everybody saying this is the best week to list your house. this is the best day to list your house i've done that story, too. this one came from realtor.com they claim that if you list your house next week, according to all the numbers that they crunch, you are going to get the most clicks and likely going to sell it in he a little less than a week faster than you would at another time of year, and this part i have trouble with i spoke to them about this they claim you're going to get more money, maybe 4%, 5%, 6% more on your price if you list it next week here's the problem i have with that different types of homes sell at different times of the year. people in the spring families list the big expensive house why? because they want to move over the summer when their kids aren't in school, and they don't have to deal with all that smaller homes tend to sell in the fall when it's single people, starter homes, maybe retirees and they don't care so much about school.
5:49 am
obviously, the price is going to skew higher in the spring than it would, say, in january or in the fall they also know that if you list it on a saturday, you're going to get more clicks, but ziloow claims if you list in may, you'll do better i have read that if you list on thursday, you get the most clicks where. >> a little push-pull. it's still important to get it on the market soon >> list it now at low mortgage rates. get them out >> i picture you in front of a giant mansion in bethesda. diana, thank you great stuff. really fun >> up next, more on the bold call that just broke on boeing why citigroup is out telling its clients to buy boeing's stock. plus, we'll name names on the hottest stocks in the past year. it's your rbi, and it will surprise you stick around - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall.
5:50 am
- learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
5:51 am
guys go through a lot to deal with shave irritation. so, we built the new gillette skinguard with a specialized guard designed to reduce it. because we believe all men deserve a razor just for them. the best a man can get. gillette.
5:52 am
>> the big stock that broke. now, the citigroup analyst admits they don't know or claim to know what will happen with the 737 max, but the base case is a multiple month grounding followed by what citi group calls a manageable fix if that is the case citigroup likely sees boeing stock moving back into the $400 range with what they call a path to 500 however, they do have a worst case scenario. one they give a 5% probability to that boeing stock comes down to 220 $220 a share again, boeing reinstated by citigroup saying multi-month manageable fix likely will be the case. stock hits 400 and goes back to 500 in that situation. however, with citi group analyst does note is that that stock will not move in any meaningful way until the 737 max is back in
5:53 am
the sky. joining us now is michael, chief global strategist at weeden and company. they seem to be as volatile as the federal reserve. i bring that up for a reason do you believe this is a steady eddie bet? >> i tell you, it's been quite a journey from over the last six months the bond market and also, you know, from people like us who are watching the fed all the time, you know, if you remember back in october, early october, we were far from neutral the bond market -- the yields of the ten-year up three and one-quarter.
5:54 am
expect volatility in the bond market and money market. you don't expect such volatility in the fed i think it's been very interesting. you know, what is ultimately that different in the economy from september through december through the march fomc's, you know, obviously some of the global growth is continuing to weaken the overall picture here is still pretty good. inflation is not escalated to the up side, but it's holding together >>. >> there is technical buying going on, and it has nothing to do with global recession fears
5:55 am
>> a little bit of that. >> there's no c. >> we're going to see a little bit of all of the above. look, there's one thing that's very clear, which is that as it relates to the bond and treasury market, the ten-year treasury yield, only one thing matters over the last several months, and that is the money markets curve, and, in other words, what is the fed going to do with hiking, right? things like supply-demand have gotten thrown out the wento. things line the term premium is at record low levels here. a little bit about that in the past the concept of even, like, the inflation story, you know, there's some tracking of inflation break-evens, and that has been disregarded inflation breaking has rallied dramatically since december. the bond market seems to have completely ignored that. >> this random but interesting
5:56 am
stat comes courtesy of our own bob pasani the question is how have recent ipo's actually done? the ant a answer is fantastic. the etf, which has 60 of the most recently publicly traded stocks is up 31% this year that's its best quarter ever here's the most interesting part. a mobile transactions and payment company. the bottom line, hot, maybe hot. fin tech has been where the money has been random but interesting you go, brazilian ipo market
5:57 am
that's it for worldwide excha e exchange futures make it a slight turn down yield to the bond. 10.38% on the ten-year we're done we'll see you tomorrow "squawk box" picking up the coverage next. have a good one.
5:58 am
5:59 am
the ten inform year note yield tumbling below 2.4%. we'll have a full market rundown straight ahead a 737 max plane was forced to make an emergency landing, but in this case it was due to engine problems. i don't think there are any passengers on board. we'll talk to senator ted cruz before today's airline safety hearing. the newest component in the dow is dow we'll tell you when that change takes place. it's wednesday, march 27, 2019
6:00 am
the futures are now turned negative on the dow. "squawk box" begins right now. we are live from the nasdaq market site in times square. andrew is out today. we've been watching the u.s. equity futures, and as joe just mentioned, looks like the dow has turned negative. down by 37 points below fair value. s&p futures looktd like they would open up down by two points the nasdaq would be flat this does come after a stronger day for the markets yesterday. the dow was actually up by 140 points it's a gain of just over half a percent. s&p up, and then the nasdaq was up by the same amount wrrn you're going to see that the nikkei w

43 Views

info Stream Only

Uploaded by TV Archive on