Dropouts

Kelly Evans's afternoon commentary & top market stories

VIEW IN BROWSER | SUBSCRIBE MON, APR 19, 2021 YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC AS OF MON, APR 19, 2021 • 11:20 ET DJIA 34052.67 -0.43% -148.00 S&P 500 4168.68 -0.40% -16.79 NASDAQ 13942.56 -0.78% -109.78   EDITOR'S NOTE Helllooooooo again!!    Sometimes people who read this newsletter ask me why I always say "see you at 1 p.m." at the end. So just to be clear: that's when I'm on the telly. Like today, back for the first time from maternity leave. It's weird and nice at the same time.    And there is so much to get caught up on! Among the topics we're hitting today: Bitcoin's selloff, the $5 trillion stockpile of savings, labor force shortages, Peloton's treadmill problems--oh, and this awful Tesla story we're still learning about. And don't miss Mario Gabelli in Power Lunch. And speaking of "power lunches"--they're back! Lots to discuss.    But underpinning all of this is one overarching theme: is inflation here to stay, or not? If the answer is yes, like Larry Lindsey will argue today, that implies a multitude of different things--higher inequality, a smaller labor force (more dropouts), higher bond yields (if the Fed isn't super proactive about it), lower stock prices, a higher taxpayer burden, a lower dollar, etc.    If you think the answer is no, you're in more of the David Zervos camp. (Zervos will be on soon to make his case.) Zervos, and others like Komal Sri-Kumar--and the Fed itself, for now--think these inflation pressures will pass, that bond yields will be contained, the dollar will largely go sideways, the labor force may even rebound, stocks can continue to do well, and so forth.    Where does that leave Bitcoin? As a proxy for risk in the market, which is itself a proxy for which of these narratives is playing out. "I think the direction of Bitcoin is a good bellwether on the risk appetite of the broader markets and view it from that lens more than anything else," wrote Peter Boockvar this morning.   Which should also warn anyone counting on Bitcoin to perform well if inflation takes off (scenario A above) to think twice about that rationale.    Like I said, lots to discuss. See you at 1 p.m! :-)   Kelly Kelly Evans Twitter: @KellyCNBC Instagram: @realkellyevans KEY STORIES  Stocks making the biggest moves in the premarket: Peloton, GameStop, Herman Miller, Knoll & more The stocks making the biggest moves in premarket trading include Peloton, GameStop, Herman Miller, Knoll, and more. GameStop shares jump after CEO steps down, 'Roaring Kitty' raises stake The company said CEO George Sherman will step down by July 31. Coca-Cola beats on earnings, says demand in March hit pre-pandemic levels Coca-Cola said quarterly demand was unchanged from a year earlier as North America and Western Europe take longer to recover. Stocks are booming, but traders are having a harder time making money It sounds like an odd problem: We're running out of places to rotate into. But for active traders, it's a serious issue. When the bull market in stocks will end, according to S&P 500 history S&P 500 history since 1929 say the stock market doesn't end a bull run after a year. Here's what's at stake for Apple ahead of its first product launch event of the year Apple faces new challenges from multiple fronts, including a courtroom battle with Epic Games and increased scrutiny from lawmakers and regulators. A look inside the most expensive home for sale in Bal Harbor, Florida One of Villa Magnolia's biggest selling points is its 221 feet of water frontage. Images and video show NASA's helicopter flying in 'Wright brothers moment' on Mars NASA rover Perseverance captured imagery and video of the historic first flight of helicopter Ingenuity. Germany's Green Party selects Annalena Baerbock as candidate for chancellor  Amazon illegally interfered in Alabama warehouse election, union alleges in complaint to federal officials The Retail, Wholesale and Department Store Union challenged the results of a closely watched union drive at one of Amazon's Alabama warehouses.     IN CASE YOU MISSED IT How smart home boxes protect deliveries What Biden's infrastructure spending could mean for muni bonds Squarespace files for IPO of up to $100 million in common stock   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS