COVID Fears Spark Market Sell-Off, President Biden vs. Facebook on Vaccine Disinformation, Zoom's Biggest-Ever Acquisition, Ackman's SPAC Scraps Universal Music Deal, and IPO Watch: Robinhood Seeks $35B Valuation

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 19 July 2021

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Jim Cramer and David Faber began the new trading week with an in-depth look at the market sell-off, as investors focus on the spreading of the COVID-19 Delta Variant and the rate of vaccinations falling. The reopening trade -- including cruise line and airline stocks -- taking a hit, while the 10-year note yield falls to fresh five-month lows. Cramer explains why be believes the FAANG stocks are the key to this market: "Once FAANG has rolled over, then you can buy." Jim and David reacted to President Biden's "They're killing people" comment that slammed Facebook and social media for their handling of vaccine disinformation on their platforms -- and Facebook striking back at the White House with a response. The anchors also discussed former FDA Commissioner Dr. Scott Gottlieb telling CNBC that Facebook must do more to control misinformation. On the M&A and "stay-at-home" stocks front, the anchors discussed Zoom Video's biggest-ever acquisition: The company agreeing to buy cloud-based call center operator "Five9" in a $14.7-billion all-stock deal. On the flip side, billionaire investor Bill Ackman's "Pershing Square Tontine Holdings" SPAC dropped plans to buy a 10% stake in Vivendi's Universal Music Group worth $4-billion. Instead, Ackman plans to acquire the stake through his Pershing Square hedge fund. The anchors reacted to Ackman telling CNBC the SEC's view of the deal was a "dagger in the heart of the transaction." New details about Robinhood's upcoming IPO: In a regulatory filing, the trading platform says it anticipates offering 55 million shares at a price between $38 and $42 per share -- aiming for a valuation of up to $35-billion. Also in focus: Duke Energy's management under scrutiny from hedge fund Elliott Management, plus Dish Network and AT&T enter into a ten-year network services deal. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0	Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.
0:09.4	Good morning and welcome to Squawk on the Street. I'm David Faber, along with Jim Kramer, and we are live from the New York Stock Exchange.
0:15.5	Happy Monday, everybody. Carl has the morning off. Let's give you a look at futures, of course, as we get ready to start trading here at the NYC, 30 minutes from now. You can see we're set up for what will be a sharply
0:25.5	lower open, and that, of course, is where you'd expect our roadmap will start. Let's call it risk
0:29.8	off this morning. Stocks are going to open lower. This, of course, is the spread and the rapid
0:35.4	spread of the Delta variant rattles investors.
0:39.6	That's what it is.
0:40.7	We're also preparing for a post-pandemic world and Zoom.
0:44.1	Well, it's doing the same, making its first multi-billion dollar acquisition.
0:47.8	It is, by the way, the second largest American technology deal of the year.
0:52.4	Plus, there are a lot of concerns about COVID misinformation on social media.
0:58.4	The president says social media is, quote, killing people. Facebook, for its part, is fighting back.
1:06.0	All right, Jim, let's talk about the market itself. Of course, our viewers just saw where we may open at least a half hour from now going to be lower, somewhat substantially lower. It does appear to be because the Delta variant spreading quickly. We spend a good amount of time talking about it. Thankfully, hospitalizations and or deaths have not been following the case count in the same way, but it's of concern, it would seem. Yeah, look, you come in and
1:31.3	you see Europe down big. Europe's in a different position from us. You see the tenure at some
1:36.3	price that makes you think that there must be just all hell is going to break loose. You see
1:41.4	that there's whole states that seem to just don't believe.
1:46.1	And then you hear that Facebook is killing people in the president.
1:50.1	Zuckerberg, by the way, many things have been said about him.
1:53.1	This is the first time I heard he's murder.
1:55.8	Well, he didn't say bad.
1:57.4	Well, okay.
1:58.2	He didn't say it.
	...

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