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tv   Worldwide Exchange  CNBC  April 5, 2021 5:00am-6:00am EDT

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in him anymore 'cause he's just dangerous. laugh all you want, guys. i'll be the one laughing all the way to the bank. burdett: you know, when a person doesn't have any moral compass to go by, he's a real dangerous person. 5:00 a.m. at cnbc. here are the top five at 5:00. wall street with the first crack at the blowout jobs report after the extended holiday weekend dow futures are up. and division among democrats about how to pay for president biden's $2.3 trillion infrastructure plan as some gop leaders call for it to be cut by more than half and the kwafallout over the georgia voting laws. and the federal government
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taking action over the 15 million botched covid vaccine doses as j&j sticks to the 100 million dose goal by the end of next month. king of monsters delivering a jolt it is monday, april 5th, 2021. you are watching "worldwide exchange" here on cnbc ♪ ♪ >> good morning. i'm frank holland in for brian sullivan here is how your money is setting up on this second day of the second quarter stock futures are up across the board. we see here the dow poised to pop 200 points at the open right about now. wall street coming off the holiday weekend after the s&p ticked above 4,000 for the first time ever on thursday. notching its 16th record close
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of the year. we're in the second day of the second quarter today is the first day investors have the opportunity to react to the jobs report on friday. employers adding 916,000 new jobs last month. the highest level since august and economists were looking for a number closer to 675,000 unemployment rate ticked down to 6% to some of the other top stories. hedge funds are evaluating the banking relationships after the fire sale by archegos. that forced billions of dollars of losses for credit suisse. the head of one london based hedge fund says the firm initiated an internal process another firm saying in the wake of the scandal, it has been fielding questions from investors about which banks it is exposed to. it would not feel comfortable if
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it was related to archegos. and now to the suez canal. more than 400 vessels were rating on the northern and southern ends of the 120-mile waterway all delayed for six days while crews worked to free the co container ship stuck "ever given. and u.s. p cocompanies are forced into boycotts after the measure on friday when major league baseball would not hold the all-star game in atlanta this summer. companies are rejecting the proposals. and stocks looking to build on the jobs report that strong start to april with the s&p holding above that 4,000
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mark the next guest says global diversity is key for more, i'm joined by the co- chief investment officer at invest net dana, thanks for being here. >> thanks frank. >> dana, the ten-year above 1.7. we saw the blowout jobs report what are we seeing we are seeing a trend toward inflation or the recovery and things ticking up? >> it is a great question. a lot of indication up consumer confidence is up. it is both expectation and survey of what people feel is their present circumstances. in fact, we have all of those covid checks hitting everybody's pocketbooks. i think expectation of the retail surge wouldn't be out of
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the realm. seeing a lot of positive ca indicat indicators is this inflationary or is it growth are we having the recovery that we were hoping for as opposed to the square root? you will see differing views on this i think certainly there is a good aspect of this which is growth in the economy. there are some possible setbacks we could see spikes in covid variants could be a problem. so far, so good on the economic front. >> dana, i want to ask another question last quarter, we saw you tech lag. we saw things like dow transport up 16% and the russell up 12%. what does that say about the thought of this being a recovery versus inflation >> certainly value stocks and we're seeing financials and
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industrials and energy doing well value stocks have been pummeled for several years now. obviously making a comeback. that's typical in a recovery value tends to do well in recovery it's his or miss when with markets are down and last year with the completion of the fact that you had people at home and tech stocks well situated for that situation you know it is not surprising we are finally seeing that rotation to value. will it continue do we expect that the s&p will stay as broad as it is right now? i think certainly for a time i think the underlining premise for tech stock is very good. at the end of the day, the companies are well positioned. this is not a tech basketball w bubble where companies are out
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performing it is different in this case i expect the s&p to stay broad i expected value stocks to do well for a time. >> dana, before we let you go, speaking of someone's thesis, i'm curious how your thesis is changed by the corporate stock changed to 28% >> certainly there will be winners and losers as we move forward as that happens and another part to the plan and what happens to the tax rates for corporations globally. it looks like there is some headwind there for companies in terms of just some of the plans. i think also that as we get into the year, we are certainly going to have our work cut out to see what happens with this tax increase i don't think it is the only one we will see. i think we are seeing the biden administration split up the tax increase and infrastructure bill
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so that as we move forward, we may see those personal income tax proposals come back on the table as well. winners and losers it is very early in the game to see where we will end up on this >> dana, we appreciate the insight. thanks for being here. >> thank you turning attention to washington the biden administration is pushing hard to sell his infrastructure jobs plan with republicans questioning not only the tax increase to pay for it, but what is actually in that bill tracie potts is live with more good morning, tracie >> reporter: frank, good morning. the push begins today with vice president harris in california she has a listing session in oakland and tomorrow in chicago. talking jobs and infrastructure. the game plan is to get the public behind it to get washington moving. republicans are hinting they might support the president
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biden infrastructure plan if he sticks with roads and bridges and broadband and gets rid of the rest. >> easy bipartisan win if you keep this package focus ed on infrastructure >> reporter: and nix the tax increase >> the worst way to pay for it >> reporter: transportation secretary pete buttigieg says the administration is p opopen ideas to pay for the plan, but they think it is fair to tax big business. >> we have seen corporations paying zero. we're just asking corporations to pay their fair share. >> reporter: the idea is to create jobs in the economy devastated by covid. health experts disagree if the u.s. is on the edge of another surge. >> we will see in the next two weeks the highest number of cases reported globally. >> i think there is enough i
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immunity we are already seeing the numbers continue to go up. 8% more cases last week over the week before. frank, that was before a lot of people went on spring break. >> tracie potts with the latest from washington. thank you. when we come back on "worldwide exchange. the end of the era for one mobile phone maker after dominating the market a decade ago. tesla reporting the first quarter numbers for 2021 what wall street has to say next. and tim cook speaks out over the privacy fight with our cnbc contributor. chgerern more when "worldwide exan" tus. stay with us the future. inking about the future, is human nature. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones. ♪ if your money is working toward the same goals, why keep it in different places?
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gotta respect his determination. it's easy and affordable to get started. get self protection for $10 a month. welcome back time for the big money movers. tesla shares up almost 7% after the company reported it produced more than 180,000 and delivered nearly 184,000 vehicles in the first quarter of this year analysts were expecting them to deliver 168,000. all of the electric vehicles it produced were model 3 sedans with model x production dropping down to zero samsung says it likely saw a 45% jump in profit for the recent quarter on robust sales of smart phones and tvs the chips are in a trouble spot
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after the company was forced to shutdown the u.s. plant due to weather. the company is scheduled to announce preliminary first quarter results on wednesday. lg electronics will wind down the division after failing to find a buyer. it is the first major smartphone brand with draw from the market. lg is the number three brand in north america. it will leave 10% share of the smartphone market with apple it logged six years of losses. the move, however, will allow it to focus on electric vehicle components to connected devices and smart homes. shares down 2.5% still on deck for "worldwide exchange." sticker shock at the dealership. why people are willing to shell
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out big bucks for the electric hummer suv >> announcer: today's big number $500 billion that's how much more money needs to be spent upgrading the electrical grid in the u.s. and europe by 2040 according to morgan stanley this is on top of the existing investment plans and what translates to an 11% increase in the overall market
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♪ welcome back to "worldwide exchange." the pandemic and civil unrest over the last year have highlighted an economic disparity in this country and around the world education is not the great equalizer as minorities graduate with debt. the next guest can help narrow the skills gap we have the founder and managing partner at zair capital. >> thank you, frank. >> you started a $50 million fund backed by paypal.
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before we get to what your company does, how does diversity and inclusion fit in tech industry and the future of work? >> that is a great question. entrepreneurs have to include everyone with the strategy, we are proactively sourcing and investing and scale entrepreneurs building solutions to push the country's wealth and skills gap technology, to your point, can level the playing field as we have seen over time across all sectors. >> so, we look at the future of work, we understand the workplace is changing through the pandemic it changes as we all work differently. something that caught my eye in the $2.3 trillion infrastructure bill, it included more than $500 trillion for money for small businesses and money for
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const construction how will this infusion of capital along with roads and bridges impact the future of work >> a great question. the infrastructure bill is a jobs bill. it will essentially allow to support new infrastructure and resources. the question is upscaling and rescaling the work force last week, we saw we added 900,000 jobs 6% unemployment. still, 30 million plus workers remain under employed or unemployed all workers from manufacturing to blue collar and white collar jobs need the resources to remain competitive in the work force force. >> can you tell us about zeal capital? can you tell us why it is important to focus on diversity and inclusion when you are tech
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investing? >> absolutely. today, zeal capital is a washington, d.c. based inclusive investment vehicle focused on diverse managing teams rethinking the building blocks of wealth from education to employment and financial wellness that we believe charges economic mobility. we do this with financial technology and the future of work sector as you stated. we spent the past two years pre-pandemic marketing these sectors. there continues to be a great deal of companies all the way from rethinking alternative pathways to education and training and skill development programs and credit access expansion and infrastructure for new and small businesses we're super excited to be a sector specific given our domain
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and operating to source and invest and scale our businesses. we are not just invest ing in people, but solutions. the idea is great entrepreneurs exist everyone we are allowed to widen our lens and ensure we are under repre represented so they can scale their businesses and maximize potential. >> really eye popping numbers. $4.4 trillion in untapped economic opportunity due to the under investment and early stage companies led by women and people of color. thank you for joining me now turning attention to the other top stories. we have phillip mena in new york >> thank you, frank. good morning the race is on to prevent the
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disaster in florida. a waste water reservoir south of tampa is threatening to burst potentially letting lose saltwater. families have been ordered to eva evacuate if it collapses, catastrophic flooding could happen. crews are working to move water out of the reservoir as quickly as possible. a new champion has been crowned in women's college basketball stanford set the tone early against arizona going on the 10-0 run early in the game the upset wildcats would not go away arizona down 7 at the half and closed the gap with the explosion to close out the third. stanford beaten arizona twice during the regular season by double digits. this one was for the title and it came down to the last shot. >> mcdonald. five seconds left. mcdonald
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two seconds. mcdonald trapped. heaves that is it stanford survive >> with their champion trophy. the first title for the stanford season from this group who showed incredible resilience all season long. displaced from their home. >> the pac-12 women's player of the year could not get it to go. 54-53. the cardinal claim the first championship since 1992. the factory copy of the nintendo super mario bros game set the auction record for $660,000 it was purchased in 1986 and, frank, somebody discovered it in their desk drawer this year.
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they said let's put it up for action over $500,000. >> first, congratulations to the ladies from stanford great win for them great win for pop culture. original super mario brothers game they were like hot cakes when they first came out. >> eventually you do the nintendo blow to get it working. >> puhillip mena, we love that. still ahead on "worldwide exchange." infrastructure winners and losers in the president biden more than $2 trillion package. katherine thompson is here ffrhere if you missed orwi"wldde exchange" check us out on our podcast or other apps. stay with us
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stocks looking to build on the back of the blowout jobs report for march with the s&p 500 pushing in record territory. futures are higher. apple ceo tim cook firing the latest shots of the feud with mark zuckerberg. competition for the agents looking to capitalize on the limited number of homes up for grabs. it is monday, april 5th, 2021. you are watching "worldwide
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exchange" here on cnbc ♪ welcome back i'm frank holland in for big papa brian sullivan all of the futures in the green. dow looking to pop 200 points at the open this coming after a long holiday weekend for the markets and on the blockout march jobs report the unemployment rate ticking down to 6% turning to the other top stories. johnson & johnson assuming full control of the plant in baltimore where 15 million of the covid vaccines were spoiled. the biden administration stepping in to help facilitate after workers mixed ingredients
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for the j&j with the astrazeneca vaccine. astrazeneca is moving out of that location. johnson & johnson is reit reratn the 100 million doses by the end of the month. and companies gave over $50 million in donations to lawmakers to push for the restrictions for the associated press. at&t was the most proper profit during that period delta airlines being forced to cancel 100 flights yesterday
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after the staff shortages. it was juggling the issues like some employees having side effects from the covid vaccine apple ceo tim cook speaking out with the feud with his company and facebook speaking in the podcast released a short time ago tim cook was asked about the changes forcing all apps to ask user permission before tracking them cook says his company is giving the user the choice to be tracked or not to be tracked and he is shock there is pushback on this to this degree. kara swisher will have more at 11:00 a.m. to d.c. and president biden's infrastructure plan drawing pressure from the left and right for the $2.3 trillion
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package. republicans question the size and scope of the proposal. the tax hike to pay for it and the commitment to bipartisanship at the white house >> when you think about infrastructure, you think about roads and bridges and ports and airports that is a small part of the infrastructure package that does so much more than infrastructure i understand the dynamic of taking a popular title and wrapping it around a bill that is a small percentage. it is the difference of a bipartisan easy win or a partisan broad based $2.3 trillion package >> also, some democrats are skeptical of hiking the corporate tax rate they feel raising the gas tax i
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a per better way to go we have ka katherine here with us they created a tax hike proposal into the mix let's say this gets paired down to the traditional infrastructure can we talk about the stocks and companies you see benefitting? >> before every highlight build p builder jumps for joy that all this is to for roads and bridges, only 6% that said, when you break down the sectors as building out electric vehicle stations, which is 175 or building out robust facilities, that is another $400 billion. with the names benefitting, it will go back to the heavy
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material things. a wind farm or a health care facility, you have to have routes some of the names of the bulk materials. martin marietta and u.s. concrete and summit materials. summit is located in a lot of cities where you have a lot of people leave and move to because of secondary cities and better quality of life. another unlikely winner to think about, frank, building product distributors when you dig into this, it is not traditional roads and bridges we think about, but some are building out buildings you buy building products through distribution one of those names that you get on the heavy side and also on
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commercial elements is ferguson. that could be in addition to beacon and build pers first source >> kathryn, you have the construction and industrial conference coming up you will devote one day to infrastructure let's look beyond the traditional infrastructure roads and bridges. sen senator blunt calls it the same thing. renewable energy and charging stations are there other sectors benef benefitting? >> one of them, called owens corning. you think of pink panther.
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one product is wind blades or wind energy. you will see a massive benefit they actually get an additional kicker with alternative energy which is a good third of the revenue. you will have an increase inspection in services apg is a newer public company that benefits from that. another company along that line as you think about energy efficiency and managing buildings. >> kathryn, thank you. thanks for being here. >> thanks, frank. turning to the real estate market anyone house hunting knows it is tough with the record low number of homes for sale. it may be very frustrating for
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buyers, imagine the real estate agents at a bulk rate. >> reporter: potential buyers were lining up outside and lamenting the competition. >> have you had a lot of people come through >> reporter: for real estate agent, it may be an easy sell, but finding stock has been tough. >> for me, it is this house in your neighborhood sold with 11 offers it sold x over asking. i think we can do that with your house. >> reporter: there were 1 million homes for sale at the end of february according to the national association of realtors there are now nearly 2 million working agents as more got into the business during the pandemic
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>> this is not the time for amateurs this is the big leagues. >> reporter: dana bull showed a high end home outside boston last weekend in over a decade, she has never seen as tight a market as this one. >> we are pulling out all of the stops with mailers and terms of social media >> reporter: psupply last been lean and now the higher end is slimming >> it feels like a game of tetris we are trying to place people on the board and strategically move people around in a way that best fits their lifestyle >> reporter: that condo in boston sold for well over asking price with multiple offers this is the time of year when most new listings come on the market, we are not seeing it 20% fewer homes listed for sale this march compared to a year ago. frank. >> great reporting, diana.
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given how high home prices are, why aren't are more listing homes without prompted by agents >> reporter: because they are afraid they won't find or afford anything else to buy remember, we hhave vaccines coming through the system and feeling better about the economy, people don't want other people walking through their houses a little worried having an open house and having buyers come through. they don't want to go through the process right now. it is really what is affordable out to buy or even to rent rental market is pricey. >> another question. are real estate agents hurt by the trend of companies going in and buying homes for cash and fix up and flip? i get tons of texts. people offering to buy me y hou. >> it is not just the i buy.
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they are growing and some are real estate companies. there is increasing competition among large markets in houston a growing share of investors in the market because they know the single family rental market which they turn homes into, is lucrative. competition among investors which are all cash that is is tough competition >> diana, thank you. coming up on "worldwide exchange." one state is teaming up on a vaccine passport and a bid to get life closer to normal. as we head to break. carl icahn naming a former executive to be the cio of his firm according to the wall street journal, the chief investment officer begins his new role today. gm unveiling the electric
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♪ welcome back the cdc relaxing travel guidance for americans who receive the covid vaccine. vaccinated people can travel domestically and internationally as as long as they wear face coverings. administering over 4 million doses on saturday. 23% of americans over the age of 18 have been fully vaccinated. in new york, one-third of the residents received the vaccine new york is rolling out a vaccine passport this was the first weekend that
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venues could reopen at one-third of capacity. for more on the vaccine passport, i'm joined by katharine wild good morning thank you for being here a really exciting development with the vaccine passports offered. >> thank you, frank. absolutely it is exciting fewer than 10% of manhattan's 1 million office workers are back and traveling tourism industry is still way down. row hotels are half empty. it makes a difference that new york has come up with the pass that will validate via your phone, you can have the full vaccination. that is a better system. these are the cdc paper cards that are easy for anybody to print. not a safe way to regulate this is a very important break through using technology and using the fact that we have the
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ability to really validate through the state department of health that you are vaccinated >> katharine, technology is a great way to aggregate information. somebody can say they are vaccinated a lot of data to absorb, i guess. cases on the rise and vaccine rollout is happening what does this passport do what can everybody agree on? we know what a green light means and we know what a red light means. what does the passport provide >> again, the cdc has a record of everyone who has gotten a vaccine. the number of your doses and source of your dose. all of the specifics they keep that record. they can share that record only with the state department of health in turn, in new york state, the
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state department of health is not going to share your information. all they are going to do is validate you had the proper dosage of the vaccine and they know what date you had it. so, this is an important breakthrough and many people don't realize we will probably have booster shots for the vaccine for the rest of our lives. a single card will not do the trick. it will have to be updated privacy is maintained through an ibm block chain system no question of releasing health data to any sources. this is a very secure system it will be able to sit on top of other systems we have for a number of years with private company clear which had a tsa pass so you can get expedited clearance into the airport to get on the airplane. that's the same idea
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your i.d. plus your health pass. the pass could sit on top of those kind of interventions so you carry one i.d. all in your phone. >> again, a really exciting development. i'm glad you addressed the privacy concerns we have to get going in a second before we let you go, which industry or business do you see benefitting the most from the vaccine passports? >> well, across the board, i think everyone will benefit. the first thing is we get the office workers back in the buildings. to do that, we have to have a universal pass so you are not just going with the system that's health check in your office you have a universal ability to move ranaround the city. the vaccine pass will be able to do that. we're excited to have it available. >> all right thank you so much for being here we appreciate it still on deck on "worldwide
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exchange." stocks set to kickoff the trading week with strong gains advisers capitals layout the name we see opportunity in. if you have not subscribed to our podcast, check us out on apple or spotify and april is financial literacy month cnbc is sharing the importance of financial education here is nasdaq paresident on th importance of a stronger economy. >> learning how to be successful personally and professionally and leverage the education is a big part of the economy. the financial industry has done their foort part to provide educational opportunities. we are getting involved in opens businesses and making lives a success through finance.
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welcome back turning back to the markets. futures pointing to strong gains. my next guest says we should expect a macro recovery. joining me now is joanne feeney. >> good morning, frank >> we showed stats earlier where 23% of people got a dose, but cases are back up to the august and september levels what does that mean for the recovery on a macro level and what sector do you see showing that recovery first if it is going to happen? >> frank, you know, clearly it is a tough thing for folks suffering from covid we are seeing cases rise in the u.s. and in europe and asia as
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well and globally. that is a concern. in the u.s., we have an advantage. a large advantage which is the number of vaccinations taking place. that number is accelerating. you know, in the u.s., a race between the vaccine and the coronavirus itself you know, because we're vaccinating so many people, we are going to come out of this sooner than else wwhere. when we look at the macro recovery, we will see the u.s. lead the world we expect the global recovery to be a tailwind. the u.s. will come out of this first. a lot of consumer savings and pent up and waiting to be spent. it is starting to come back. the trade deficit is expanding because the u.s. consumer is buying more. that is a natural outcome and a sign the u.s. is recovering more quickly. yes, it is concerning that cases are rising particularly
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globally here in the u.s., the vaccination pace is really ultimately going to win that race we could have some rough sledding ahead for the next few weeks. consumers have a lot of savings and starting to spend it already. in terms of sectors, frank, you asked several sectors seeing an uplift look at the consumer space travel space people on the roads and stopping at the convenience store tj maxx. people want to start shopping again. consumer spending will see a lift don't for get about tech although some of them are expensive, there is a lot that is still cheap here and will get an extra boost from the infrastructure plan whenever that comes along that will take time. >> a lot of government stimulus. whether it goes to consumers or industry that could be coming up.
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as we look at the current environment, how important are stocks that pay out dividends right now? >> frank, it depends on the investor we have clients who are looking more toward future so appreciation. we have clients in retirement phase and they want a portfolio set up for them that delivers yield. you know, what with we do for clients is build portfolios of stock. we customize depending on the needs. dividends are broadly spread you can find the banks and insurance companies. you can find good dividends in the longer-term technology plays. cisco is a good place. ibm is an interesting play right now with the relatively new ceo and efforts. qualcomm has seen the stock pull back right in the middle of the move to 5g. if the infrastructure plan does
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pass, there's going to be a lot of spending on broadband anybody involved in the wireless infrastructure plays like qualcomm or corevo there are a lot of opportunities for the dividend reopening and longer term tech >> joanne, you mentioned financials being one way to play for dividends. as rates continue to rise, people are turning to financials how do companies plan with the reopening? do people plan on that or the traditional banks? >> i think that fintech is playing an increasing role we hear the presidents of the federal reserve banks talk about the importance of the conventional banks to build up technology make sure they are ready for the new reality where more mobile
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banking. q 2. mobile banking for smaller banks and regional and helping the larger banks these are really right in the middle of the change in the financial technology that's taking place sdp atoeoanne, thank you th ds it for "worldwide exchange." "squawk box" is up next. lately, it's been hard to think about the future. but thinking about the future, is human nature. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones.
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stock futures are set to surge after friday's blowout jobs report. u.s. markets get their first chance to trade since the government reported the addition of 916,000 jobs in march and the u.s. government helped j&j take over the vaccine
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plant. and showdown in georgia. governor blasting major league baseball for pulling the all-star game out of atlanta over the controversy new voting rights bill. it is monday, april 5th, 2021. "squawk box" begins right now. ♪ ♪ just another manic monday ♪ ♪ wish it were sunday ♪ ♪ that's my fun day ♪ good morning welcome to "squawk box." becky and joe are off today. u.s. equity futures at this hour higher right now across the board. s&p poised to open up 21points remember, friday was a holiday the markets were closed. we got the blowout jobs report again, you are seeing the futures higher this morning.

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