Markets and the "Delta Effect" on the Reopening Trade, Robinhood Soars for a Second Straight Day, SEC's Gensler on Meme Stocks, GM's Earnings Miss, and Faber Guest Hosts "Jeopardy!" - Episode Two.

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 4 August 2021

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber led off the show with a look at the markets and how the decline in yields is impacting big and small investors alike. Stocks that are part of the reopening trade in focus as the COVID Delta variant continues to spread and the pace of vaccinations is starting to rebound. Jim explains why he thinks "the 'I'm probably going to be okay thesis' is still playing out." Carl, Jim and David stayed on top of the moves in shares of Robinhood, extending Tuesday's rally and soaring more than 50-percent during the first half-hour of trading -- the stock was halted a number of times due to volatility. They also reacted to what SEC Chairman Gary Gensler told CNBC about the so-called "meme stocks": He said "the retail engagement is positive" but adds investors must be protected from fraud and manipulation. The anchors also engaged in a lighthearted discussion about the second episode of "Jeopardy!" with David as guest host: Highlights include Faber's exchange with the defending champion about where he might invest his winnings. The "Mad Dash" segment even included a twist on the "Daily Double." Also in focus: Earnings winners and losers including General Motors' profit miss and what CEO Mary Barra told CNBC about the chip shortage and her outlook for the second half of 2021. In the mix: The monthly ADP jobs report that surprised Wall Street, plus the antitrust enforcement fallout - what's at stake for companies involved in pending M&A deals? 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.
0:06.1	This is Squawk on the Street. And now, here is your opening bell countdown on CNBC.
0:19.5	Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kintanilla with Jim Kramer, David Faber, the New York Stock Exchange.
0:25.9	Futures are obviously a little bit weak here. We'll talk some David on Jeopardy in a moment, but we're looking at some softness as we're coming off.
0:31.5	The S&P closing high. That ADP number was light. 330,000, about half the estimate. Ten year yield is back to
0:38.4	one-one-four, and that's where we're going to start, Jim. Yields, if we crack 112, we're
0:43.5	looking, we're going to go below that, below we saw last month.
0:45.8	But we're starting to read about hedge funds that were short that are scrambled.
0:50.1	And when you see that, we tend to forget. Hedge funds seem to be short many things.
0:56.5	And there's so many hedge funds that when you see a spike like that,
1:00.4	we should start to be thinking, well, wait a second.
1:02.6	Was someone on the wrong side of that trade?
1:04.7	Now, we saw in the 80s that there were people who were the wrong side of the two year.
1:09.8	But then we kind of got away from that.
1:11.7	But I'm reading about billion-dollar losses of hedge funds,
1:14.4	and I'm thinking, wait a second,
1:16.5	before we just say it's weakness in the economy,
1:19.5	maybe it is someone who just literally did not figure out
1:23.8	that these are thinner than we thought.
1:27.2	Really, the bond market thing is thinner than we thought.
1:30.1	I am finding a lot of people who are... I know a lot of hedge funds that are short the tenure.
1:35.3	You do? Yeah, I do. Now, oftentimes it's to hedge something else. So it doesn't necessarily
	...

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