tv Worldwide Exchange CNBC March 6, 2020 5:00am-6:00am EST
the most successful ceos on wall street and beyond busy. what one big box is telling analysts amid panic buying it's friday, march 6, 2020 and "worldwide exchange" begins right now. good morning welcome to the show. joining me the entire hour, citi private bank global strategist who will write down all of the headlines for us now to this morning's top stories and breaking news. wall street is once again licking its wounds after a wild day of trading yesterday a wiswing of more than 3%. just four days, up 1,300, up
again. you can see the dow is indicated again down 515 points. it is important, we've seen about 200 points in deceleration levels all of this coming off yesterday's moves. all the major averages are in so-called correction territory those were record highs. those moves are happening with the treasury yields and benchmark hitting its lowest level in history listen to what double lines told us yesterday >> i think we are pretty low right now. i think maybe we'll get to 80 basis points i don't believe on that 10-year. the short rates are going lower.
we are starting to see a steepening yield curve in a way that is noticeable >> did he speak too soon the 10-year treasury note yield 0.7% 30-year bond 1.31% on the flip side, gold is on track for its best week since 2016 we are watching those prices up another 1% last week, we were up 8% on gold futures. the car tell is looking for a
producer those were a little more red arrows around the world as well as you can see here in london with a global market round up the picture isn't that pretty the hand overover is pretty neg. a lot of red on the board. the nikkei down. one name got hit in trading. that is soft bank more than 6% lower. shanghai composite, all eyes on the chinese major getting hit a little bit as well down about 40 points down relatively better than the
shanghai composite still trading in negative territory. all of this yielding to a negative start let me take you to what the european markets are doing as well uk is down also a very, very negative day for the airline industry iag trading down 5%. lufthansa in the german dax trading down 5%. on the cac also trading down 5%. adding to that autos are coming under significant selling pressure this is what you get, negative indices for the week >> live with the latest on the global market round up as we speak, you can see in that
red box, the dow is indicated to open down about 550 points this does represent the session lows all as the benchmark yield continues to move lower over the past few hours currently yielding about 74 basis points or.74% off the session lows we did hit historic lows for more now, i'm joined by citibank strategist. i don't even know where to start. what has been the most interesting to you given what we've seen the past few weeks now? >> the realization that this is a global shock it is not contained, it is 85 countries. it is global just coming to the realization,
governments and people will adjust to the shock. it is not the economy is overgrown. there is not excessive production or collapse the true collapse where there schbt diversification. you don't take your vacation in another part of the world. you stop the vacation. this impact is something investors are coming to grips with they'll see more the public understands this. it is not going to be a spanish flu but it is going to be a global shock >> over the past couple of years when we thought the trade tensions would come from the united states and china. even that, the two world's biggest economies are going to battle with each other the world economy hangs in the balance, yet markets still hit
in some cases historic highs or multi-year highs we thought that would be the black swan but this is worse >> to get ironic in the face of a health threat. it did not produce true excesses we don't have high inflation or debt burdens there is no collapse that will happen naturally despite the link to the cycle. it hasn't developed the type of boom characteristics in a bust where everything goes down for the full year. this is like a big natural disaster we have been emphasizing and if we look at the markets, there is a true global shock. you wanted a perspective that will take that into account.
we think world gdp won't really grow in the whole first half of the year it will move from country to country where the impact will be china is probably overly disruptive >> you are already seeing a bid put to many of those risk aversions. >> stick around. we'll see you again throughout the show >> when we come back, another health scare this time for jpmorgan ceo jamie dimon and look at airline stocks down 3% for southwest, 18% down for alaska, 22% for american we'll break down everything you need to know travel and leisure coming up. a busy hour of "worldwide exchange."
>> announcer: today's big number, $177.5 billion that's how much ths&e p financial sector has lost in market cap since tuesday systems in all seven countries. and online sales? that's a whole other system... and different regulations. therere'realal eate e crits,s, . and we have no way to integrate all that? no... but bdo does. peopopleho k kno knonow o. to feel connected. it all starts with an invitation. the invitation to lexus sales event now through march 31st. lease the 2020 es350 for $379 a month for 36 months and we'll make your first months payment. experience amazing at your lexus dealer. i'm part of a community of problem solvers. we make ideas grow.
block down, norwegian cruise line down pre-market another health scare for jpmorgan chase ceo >> they said yesterday, he is recuperating after emergency heart surgery. co-presidents said the surgery was successful and he is alert and doing well quote, we want to let you know jamie experienced an acute incident the good news is that it was caught early and the surgery was successful he woke up with chest pains yesterday and went to the hospital pinto and smith will be leading the company as dimon who is 63 years old recovers
>> this is not the first time we've had a real health scare around jpmorgan ceo. >> he was diagnosed and treated for throat cancer in 2014 and underwent eight weeks of chemo as the memo said, he is alert and recovering well. i'm sure a lot of investors hope he returns to the helm one retailer who says it is beyond busy. retail sector guru is here to discuss those details. and why shares of american outdoor brands sinking in the pre-market we'll be back after this was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired.
we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. but when allergies and congestion strike, take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d. to putting your true colors on display. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.
doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow, that is easy. so, need another reminder? no, no no, i'm good. uh, yes please. oh. ho ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com.
the tax business check out shares of okta reporting a narrower loss than expected the company providing mixed guidance and expecting a wider than expected loss and increase of revenues. those shares up in the pre-market off of the heels of a q2 double beat costco has seen an uptick as customers pour in to purchase household essentials and cleaning supplies. in the last three months, still you have 6%. take a look at what's happening here >> caller: our members are turning to us and we are doing our best to stay in stock. we are getting deliveries daily but still not enough given the increased demand >> for more on costco's results,
i'm joined by deigny telsi you've watched this retail business for a long time how often do we see a ceo or cfo of a major big box talk about a virus outbreak that then drives a financial performance. >> you rarely see it when you look at what costco sells. they sell a lot of essentials. they need to stay in stock look at the customer renewal rate it shows how much customers depend i'm a big costco shopper the folks probably see me three to four times a month. the people know me i asked the store manager is the traffic higher he said absolutely but it wasn't
like the whole store was cleared out. certain cleaning supplies, paper goods, hand sanitizers and nonperishable goods. >> there are always attachment sales. yes, it is when you see the increases they've had in the recent quarter that carried into the recent week, it is enough to drive those sales. that is not going to stop. i think the momentum continues >> i also went to other larger format stores, home depot, they seem to be plenty stocked. even the one close to my cost go, the basic stop and shop store and they had plenty. is it the costco shopper
>> i think it is the kirkland brand is known for quality. people go to costco to stock up. what is everyone doing now, they are stocking up. >> we are showing a rolling video of numerous parts of a costco store shot in new jersey on february 29 showing types of products price, nonperishable items toilet paper used to be here can we also say bjs and sams or walmart, is this the same thing for all of these >> it is the same for walmart and target. we saw kroger's numbers yesterday in line. the expect for costco were far
exceeded by the numbers and even talking about most recent trends will be a big beneficiary. >> dana, thank you still ahead on the show, we are live in austria where opec leaders are proposing the largest oil supply cut since the great financial crisis "worldwide exchange" is back after this these days you need faster internet
get powerful wifi coverage that leaves no room behind with xfi pods. and now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device that's connected is protected. that's a $72 a year value. no one else offers this. faster speed, coverage, and free advanced security at an unbeatable value. get the xfi gateway and download the xfi app today.
welcome back to "worldwide exchange." the dow futures are at a 600 drop l ok at the pre-market laggers aloff 2.5 to 3.5%. "worldwide exchange" is back after this with the fastest non-drowsy allergy relief and turning a half hearted yes, into an all in yes. allegra. live your life, not your allergies.
doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. ...take the personal assessment i love the new myww program, because it's tailored to you! and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join today with the ww triple play!
the full levels. 30-year long bond and 2-year note 0.48% what does this all mean let's talk about the gold trade. 1,687. we are watching oil as well. opec agreeing to a cut but the car tell is waiting for approval from russia. >> we'll watch that reaction in trading. the wild ride so far and we'll start with you
after the big sell off on wall street, we are hearing zero percent growth we also saw the 10-year falling to the near 18-year low we do see the dollar pulling back during the asian session, we did see the yuan pulling back due to the shrink back. perhaps that kind of a policy hope in china is the relative resilience sure, that is a negative session at the close if you take a look at the year
negative .3% a lot of the sectors are exposed to the consumption and airlines industry air france where this is the picture down 4.3% in france. iag there. north of 4.5 percentage points this is mirroring the price action and the damage is continuing there is a lot of fear where we haven't had any response yet
so expectations are high in terms of the response we can get after the cut this week. back to you guys see what we can do to this picture. turning back to the u.s. markets now. futures indicating what could be or should be a block the nasdaq off 236 points. now global chief strategists also a cnbc contributor. gina, we'll start with you what has stood out to you drop in stocks. what is going on
>> one of the reasons you are not seeing a bottom is due to screaming buys i think that is a whole story in it self-outside of that the markets were really topee. one of the reasons you are not seeing support and price some of this is a result we don't know when this will be over that's where we are picking at the markets hoping it is 1,000 points over and it is not yet.
>> in your mind, are certain parts in the market more missed price given the types that we have seen. looking at the initial shock these show a jump bell they are down about 30% you could easily see a down side pricing and fundamental weakness at the moment where you see investors pull out quickly in a bit of a jump bell across the world when we look at the other side of this, we are going to be whip sawed with a lot of assets the bonds are overweight and
>> that is really supported by fed action and the shape of the yield curve and what is happening with mortgage rates. so that is very much a story about yields if you look at the market now. it is still very confused. we are trying to evaluate. and which are sustaining losses so that they can recover those if you look at the likes of the travel industry, those will probably not get recovered trips you don't take now because your company called off all travel, you are not going to necessarily recoup in the second half of the year you are probably not going to do more of that later however, there are segments of
the economy where you will recoup some of that. where you have longer secular cycle in play, some of that will be purchases recouped. you have to think about what can be recouped and what is a permanent loss >> the dow is now down an implied 716 points we've seen an implied down of 216 points bringing up a point with regard to the things that cannot happen travel and leisure is something like fresh produce, if it doesn't get sold, it is not going to get sold again. >> people think you cannot rebound quicker. plenty of natural disasters and
things we can cite the psychology now is accepting the size of the shock. there is a lot of unknowns where we have to clearly see and price in that uncertainty first. gina, thank you so much. always great to get your thoughts we'll see you again shortly. turning to oil prices hovering near three-year low. members are recommending the group and its allies make additional larger cuts dan murphy joins us now from vienna there are serious concerns about whether or not russia will cooperate with the proposed 1.5 million barrel cut >> that's right. analysts have told us that this
is a go big or go home moment much as we speak, we have ministers meeting behind closed doors to what could be the biggest cut to the global financial crisis the situation as it stands late last night, oil ministers met and agreed to cut production by 1 million but only if russia cuts production by 500,000 barrels. so far, russia hasn't said whether it will comply ministers have helpful they will reach a deal here is the energy min ser speaking earlier >> we are hoping that it is a very important member that have been working with us a very long time we look forward to a good meeting. i cannot comment on the options and all of that. i cannot see us not agreeing
because that is important for the market and everyone is keen. this is important for the are market as coronavirus is seeing a deadly spread beyond china now ministers are being called on to act at a critical time for the economy. perhaps, there is a big question mark whether 1.5 million barrels is going to be enough. we are already seeing prices down around 2% back to you. >> dan, brings up a number of cross points oil cannot seem to catch a break. it was the trade worries that drove priceslower.
shock is likely to be a large or immediate drop if there is a reduction response we are right in the down part here >> we are sticking with you through the show more with the futures. we are down 730 points implied for the dow jones if these losses are to hold open. s&p down almost 100 points down about 95. and nasdaq off about 287 points. "worldwide exchange" is back right after this ♪
it's only human to find inspiration in nature. and also find answers. our search to transform... ...farm waste into renewable natural gas led chevron to partner with california bioenergy. working to provide an alternative source of power... ...for a cleaner way forward. hey, our worker's comp insurance is expiring. should i just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? sure! get a quote in 3 minutes at easyaspie.com. that is easy. so, need another reminder? no, i'm
for the u.s. and around the world as well. the death toll continues to climb in the united states at 12 with 200 cases across the country in at least 20 states. frank holland with the detail. >> the senate has approved that $8 billion package facebook and google are asking employees in francesco to work from home. making this move to minimize the spread there as the city and state of california deal with a growing number of cases. apple recognized organizations like governments or hospitals. warning its customers making
hold investors were awaiting the release of job's report and good news to help bolster the stock story and 75,000 jobs for the month and tick down 3% looking at the 10-year as it continues to hit all-time lows 7.6% for more now, i'm joined by chief economist again. he's been here all hour. city private bank strategist tom, you are the new guy to the table here are we going to get some kind of a respit or savior to the jobs report >> the question is, if you do, does it matter >> this report is not impacted
over the course of the month even outside, the two-handled type number, i don't think the market takes anything from that. we haven't seen a show up in jobs or claims when is that axe going to fall i think this is going to be a number that will largely be dismissed. it seems to me there may or should be some kind of an impact on economic numbers in coming months, when does it happen for the jobs picture >> i do think there is something worth drawing out. let's be clear, let's say you get a weak number. say it is showing up in the numbers. i think we are being very, very premature. they are a really good snap shot
>> it is the fact that u.s. policy rate had so much policy space unlike the ecb, where would it go. the federal reserve has had the ability. that is allowing or preventing a flood of money making sure the fed is not a part of the problem. >> so the expectation is reflected in the treasury market now at its lowest level. the treasury inflated are those
that index you are now negative yielding for longer ends of the curve. that means that people don't think any real growth is ahead for the future is that true now >> what people are responding to is the shock we are all talking about. that will be five years lower or 10 years lower prior to this, core inflation is right around 20% for changes depending on how to track severe that is more of a function of
energy prices. what is the forecast or the base case we are looking at given today about the markets on the economy. >> does the virus have to be eradicated >> no. we get to economic levels. if you stopped travel, you can rebound from that. and china's case, people were at a place for the lunar new year we can see china rebound a bit it will be possible after an unnatural level. that can happen by the second half of the year.
>> i think we are in better shape than other countries to absorb what is happening right now. i had a client lunch yesterday with a very big shipping container company. we were talking in detail about how things are stabilizing or starting to come back a bit. seeing the cities and beyond stabilization as they are getting on the upswing how long it takes to get back is a different question we haven't seen any of that yet from a travel perspective or new york city subway swipes. those things will be important to watch >> last word to you, last thing
is the indicator for you >> unfortunately, detention in the united states looks very low. >> thank you very much thank you for sticking with us all hour >> that does it for "worldwide exchange." the dow is indicated down 625 at the open "squawk box" starts right now. good morning words of the week, volatility and turmoil. we are seeing it again today futures again pointing to another big drop at home >> outbreak. coronavirus fears spooking investors as global infection nears 100,000. u.s. companies are taking action >> and a health scare, jamie dimon is recovering after
emergency heart surgery. this is friday, march 6, 2020 and "squawk box" starts right now. good morning welcome to "squawk box" on cnbc i'm becky quick along with andrew ross sorkin and joe kernen we have a guest with us today. good to have you here. dow futures are down 633 points after a decline of almost 1,000 points again yesterday s&p dune by 106 yesterday. this morning, the nasdaq looks like it will open down about 263. yesterday, the nasdaq lost