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tv   Closing Bell  CNBC  July 14, 2015 3:00pm-5:01pm EDT

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a. see you at 5:00. meantime, "closing bell" starts right now get your power lunch @power lunch @cnbc.com. welcome to "the closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. oil turned around, turned higher. i know one day does not a trend make. it's counterintuitive. it was initially selling off. it was selling off on the heels of that historic nuclear deal reached with iran but is now up 1%. we'll break down what is behind that move in a moment. >> not like we had great economic data here. playing tricks on investors another fake story about a twitter takeover causing a volatile move in the shares earlier today. we'll bring you the anatomy of a stock market hoax. >> yet another stock market hoax. micron shares soaring by more than 12% right now on the
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reports of a chinese state-owned company looking to buy the semiconductor giant. the deal may have a tough time getting through regulators. could another suitor be waiting in the wings? we'll find out. >> wells fargo turning in a solid quarter posting a decline in mortgage applications this morning. john shrewsberry will join us to discuss whether he sees a slowdown in housing. we are seeing a rally in the price of oil. >> we are going to ask about that. what is going on with oil? >> i think some of this deal was priced in. we had several days of imminent announcements of a deal. when the deal came, i think everyone expected it. also the return of barrels looks like a 2016 event. it's not a million barrels hitting the market tomorrow. that's why we haven't seen a bigger reaction to the iran deal
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today. >> so when do you expect to it happen and what will the price of oil do when that does occur? >> it's a timeline. we have basically 90 days where there is going to be debate in congress for 60 days, but also within iran. after 90 days, then we are going to have iran starting to take those steps to comply with the actual agreement. then there's six to eight months. we are looking at 2016 before 350 to 500 barrels hit the market. how oversupplied are we a year from now if we are at this 1.5 million barrel oversupply situation. >> people have been saying iran could have upwards of 30 million, maybe 40 million barrels of oil stored in tankers off its coast. beyond how much they might be pumping per day how much of that supply is expected to come online? >> we think they have 36 million barrels in floating storage.
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we don't expect those to be hitting in big numbers until iran complies with commitments under this deal. that is a big part of selling this deal for the white house. they are having to say to congress, those barrels are not going to hit the market until iran complies. that's what iran will start pushing out first. they'll push out floating storage initially. >> how much longer are we going to have this overproduction we have seen worldwide? >> we have to wait to see the back half of the year for u.s. production to roll. one thing we are concerned about is, opec is not ratcheting back at all. saudi arabia added around 950,000 barrels to the market since november. >> they need the money. >> everybody needs the money. it's a race to the bottom for opec members pushing everything out they can. a producer has to roll before prices move significantly higher. >> could that producer be iraq? as the clouds there darken geopolitically? >> iraq is where you want to watch. we talked about this before. if we have isis attack on a
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southern iraqi facility, that's what would propel prices higher. how long can saudi arabia maintain this policy? they have tremendous fiscal needs. they are having to resort to borrowing domestically. when do they pull out of this strategy? how do they accommodate all these new iranian barrels hitting the markets, as well? >> what price parameter do you see for brent over the rest of the year? >> until we see a producer roll, we see wti in the $55 to $60. brent $60 to $65. demand has been strong this year. demand can take us only so far if we don't have a producer curl tail production. >> you don't see us going back to the lows of earlier this year? >> depending what the headline noise is coming out of greece, coming out if we have more negative chinese headlines, that could push us lower. in terms of supply and demand fundamentals, demand establishes a floor around $50 for wti.
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>> great stuff. thank you. a big historic day for oil markets and our relationship to iran. >> now to our closing bell exchange. we have larry glazier jonathan corpina and rick santelli from chicago. jonathan, very quietly, we started with a very quiet open this morning. volume has been light today. we are up 92 points on the dow. what's going on here? >> seems like the last 2 1/2 weeks this market has been so focused on greece. now that headline quieted down, investors are going back focusing on the basics. economic data helped beginning of the earnings season will spark activity and a lot ofç interest in this market. additional outside factors investors have been waiting to get back in this market. we trended below the 2100 level and 18,000 in the dow. we are back there now. can we stay above here?
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>> retail sales numbers were disappointing in the u.s. if it's not up on signs of stronger u.s. growth? >> i can't think anybody didn't think an iran deal was going to get done, period. the president's legacy demanded it. the deal's done. i'm not saying whether it's a good or bad deal. doesn't it make perfect sense? we have spongy retail sales. stock market is up and oil's up. this is the type of market we have. as a matter of fact, if you dig down into retail sales for the whole year, that was june. we have january and february negative numbers. march was positive, april
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unchanged. may was positive. uniis negative. out of six months, three negatives, one push two, positives. does this sound like the type of environment you would be raising rates? the market has seen past that. that's arguably one of the reasons potentially stocks are up. we have janet yellen over the next couple of days. about a year ago she wasn't correct on a market with regard to equities because she brought data in and showed us something she believes we could follow. >> are you seeing oil back to being part of the risk on trade? people think the fed is not going to be as hawkish because the data is weak? so they bid up oil here? >> i think too many people turn to too much conventional wisdom. the down draft was pricing
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things in. arab saudi arabia, i don't see them slowing down. i see space in the u.s. resistant to slowing down. ultimately it will be a supply story. i think demand will remain high, personally. >> larry glazier can you make money investing in the energy patch? we had talk of mergers in the oil patch. >> energy surprises are a real curran. it's interesting to see retail sales despite lower energy prices. if energy prices move up, what will that do to retail sales? energy service patch would directly benefit from this deal with iran. despite my concerns about whether it's a good deal or bad deal, it is good for u.s. oil companies who can do business in iran. they can create the infrastructure. there is misguided fears because of this deal and other opportunities to get created. we dig deep, what do we find here? people like warren buffett chinese investors commit capital
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to a place like israel you would think would be in the bull's-eye. that is an opportunity to invest in the innovation economy here. there's lots of opportunities as u.s. investors are fleeing from risk they should be looking at opportunities this summer. there are plenty of opportunities being created by this turmoil in the market right now. >> shouldn't people be thinking about buying risk here this summer? >> it's how you characterize risk. it's all about earnings right now. there is a populous backlash against buybacks going on. j&j reporting big multinationals have a risk the stronger dollar widening their numbers. it's a risk for earnings season.
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>> where are your expectations? what numbers are you watching? is the market waiting for janet yellen tomorrow? >> that is exactly what's happening here. everybody is happy with the performance of the market today. we've got bank of america and pnc tomorrow morning. earnings that investors can hang their hat on. it comes down to miss yellen. that reassurance of testimony in front of congress will help investors. >> thank you so much. appreciate it. >> nasdaq continuing gains we've seen lately. when we come back, wells fargo chief financial officer back with us to talk about earnings and what was behind the nation's biggest mortgage lender missing estimates on revenue. >> yum! brands and csx expected to post results after the bell. >> we'll hear from the chief
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financial officer of csx before he speaks with analysts about today's earnings. why would you want to turn us down?
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rally under way with the dow up about 91 points. same percentage gain for the s&p. nasdaq has been well. meanwhile, urban out fitters among the top gainers in the s&p today. jeffries raised its price target to $50 from the current level of $36. >> wells fargo today. >> matched earnings expectations but missed on revenue. 13% decline in mortgage applications compared to last quarter. >> joining us to break down the numbers, wells fargo cfo john
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shrewsberry. welcome back to you. >> economiwide we see growth in most of our businesses that are generating loans on one hand. both consumer and commercial. has contributed to us having the highest loan total we had at $888 billion. it was a strong quarter in mortgages, but strong in the second quarter being the purchase season. when you put it all together in this choppy gdp growth environment and lower rate environment, 2 $21.3 billion of revenue and had profit that is $5.7 billion worth of profit which is a high level for us.
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>> we do see mortgage applications at wells fargo drop by 13%. overall, mortgage banking association says they were down 10%. dollarwise you are seeing a strong quarter. the number of applications did go down. how do you assess the strength of the housing market right now? >> we had a big rate rally in the first quarter. we are the largest servicer of mortgages. people tend to come in and refinance when rates move down. we'll get most of that business compared to the rest of the market because we are the biggest servicer. when that abates because you are back in more of a purchase market the competition will be a little more widely reflected. >> again those refis will move around with rates. this has to be the single biggest issue for all the big
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banks we saw with jpmorgan and we see it with you guys. one analyst said you are choosing to move ahead aggressively and short the business whatever rates do. how important is it for you to see maybe not just that federate hike but the whole yield curve steepen here before too long. >> sure. we worry about the front end of the curve and longer term rates. we make more money when short-term rates move up because our assets price out faster than liabilities price up. we've been doing great in a zero rate environment and stand to do better in an increasing short term rate environment. on the longer end we have a bigger investment portfolio and continually add to that investment portfolio. it's more attractive to enter when rates are higher. as rates back up, we lose value in that portfolio. that becomes a capital issue for us. we are anticipating longer
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long-term rate environment in spite of what might be happening with the fed as we look around globally the u.s. yield curve looks attractive compared to what's going on with euro or other currencies. it could happen long-term rates back up, but we are not anticipating it happening any time soon. it will take meaningful economic data to move off that. >> janet yellen said during her last news conference that it's still difficult for the average consumer to get a mortgage right now, especially compared to how it was before the financial crisis. is it more difficult now to get a mortgage from wells fargo than it was before 2008? >> i think it's more difficult to get a mortgage from anyone at the margin because the documentation, the income verification requirements and other regulatory changes about the mortgage banking process are more stringent than they used to
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be. >> will it get easier at any point? >> i don't think that it will. i think it was designed this way on purpose. what we are experiencing is a reflection of what the policy intent was. it's harder to be underwritten for a mortgage. >> if i could shift gears before we let you go. today apple pay is launching in united kingdom. you guys are involved with apple pay here. what can you tell us just on your quarter about the uptick in your mobile offerings and the way which consumers' use of banking is shifting? >> big uptake in mobile banking 16 million regular users now. it hasn't resulted in a change in what's going on in our physical stores. instead we are doing more with customers. customers are using mobile technology for payments, using it for check deposit using it for checking their balance et cetera. giving them more information to make better decisions.
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what works best for us is the combination of mobile online phone bank and in-person and the combined technology that gives people what they want, when they want it, and seemed like a real competitive advantage. >> i'm surprised that's not changing people's behavior in terms of foot traffic into your branches. why do you think that is? is it unique to wells fargo? >> i don't know that it is. in our branches we have not just tellers taking deposits and cashing checks for people, but we have mortgage origination, financial advisory activity. there is a lot going on. what people are using their phones for is more staying connected with their data, understanding what their payments are checking balances, things like that, in addition to making deposits they might have been doing at an atm. if they want to buy a product or initiate a service open an account, most people do that still in a store. >> thank you so much.
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>> thank you very much for having me. >> cfo of wells fargo as they report earnings today. greek prime minister alexis tsipras appearing on television trying to sell out new bailout legislation that must be passed by tomorrow by the greek parliament. our chief international correspondent michelle caruso-cabrera live from athens with the latest. >> he is still on tv right now. this is a taped interview airing on greek television. conducted by two journalists. the theme of the interview thus far is we don't like the agreement, we don't like the way it was imposed but there is still enough in it to preserve our progressive values and prevented us from a total bankruptcy and grexit off the table. this is something he has to do. he's got to sell it to the people and the parliament. his opposition will go along with him. he's seen people leaving his
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party or indications he will have loss of members of his party. he has to deal with that. bottom line, meeting the deadline to get this thing passed looks like it's going to happen. he's done so far an eloquent job trying to defend why it is they could have ended up with a worse deal than the one rejected a week ago. >> his message is i don't like this deal but it's the best we'll get so we might as well pass it. is that the idea? >> that is absolutely right. here heard that from people who said he fought so hard. if we brought it to the mat and this is all we got maybe there is no better deal. there is nobody else left in the country to tell them austerity can go away, you can still stay in the euro. >> crazy. thanks michelle. >> michelle caruso-cabrera in athens.
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>> and markets responding positively and they digest that and a deal with iran arranged here. >> volume light though. coming up, micron technology surging on takeover talks and bullish stock call by david einhorn. that was that letter we read to you yesterday. we have a top micron analyst telling us if it's too late to capture micron's gains. >> coal prices dropping dramatically this year. morgan brennan has a special report next. en power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.
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dow now up 90 points. we are used to seeing health care on top but energy number two. nasdaq staging a surprising rally. art cashin telling us a couple of reasons. it's going to be late december before the u.n. approves any of these deals. another being offshore oil we talked about may not be useable. a couple of factors there. 9-10 sectors rallying. >> utilities very sensitive to interest rate rises. >> coal collapsing coal prices rippling through different corners of the stock market lately. >> morgan brennan joins us. >> if 2015 was a month king coal
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was dethroned by natural gas as the primary fuel for electric generation. that is according to snl energy. you can see that here. first time we saw it in history. natural gas is undercutting demand domestically. couple that with u.s. regulations targeting greenhouse gas emissions weighing global demand for coal and stronger dollar that made exports more expensive abroad. coal prices continue to tumble as you showed in that chart there. that's pushed the market coal etf down 28% so far this year. it's down about 48% from this year ago value. it's also this collapse in coal is having a ripple effect on other industries. it's particularly the case with the railroads. we talk about crude oil but coal is still rail's bread-and-butter. 19% overall railroad revenue in
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2014. it was 39% a total tonnage meaning a lot of coal is moved by trains. column volumes has been one of the biggest head winds for the rail stocks. one reason all of them are in the red and going to be a big focus after the bell today when eastern railroad csx kicks off earnings for the group. analysts expect 56 cents per share adjusted on $1.3 billion in revenue. if you want to learn more about this collapse in coal and the ripple effects throughout different industries and stocks, go to cnbc.com. >> great stuff. some people have been calling this the war on coal as buying the regulatory aspect from washington under the obama administration cracking down here. there was a reprieve saying the epa should have taken the cost of regulation in account. is that extending a lifeline to this industry? >> not really. a lot of utilities that had to
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transition over to natural gas are methods of cleaner emissions already did so in spite of what we saw with the supreme court a couple of weeks ago. the thing to keep in mind if nat gas went below $3, it's more cost effective to use nat gas versus coal. if you were to see nat gas jump up to $4, you would see coal being adopted more in power generation despite regulations. it's a one-two punch. we've got the economics playing out against coal and so are regulations. >> if you look at that chart of csx, it correlates with the price of coal as it moves lower there. >> a tough year for transports despite the drop in oil prices. csx does post results after the bell. we'll speak exclusively with the cfo of csx.
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mitch mcconnell says it will be very hard to override president obama's veto if congress rejects the iran nuclear deal. many iranians were glued to their tv sets watching live coverage of mr. obama's teach on the nuclear agreement. lifting sanctions will mean iran will receive billions of dolls for its crippled economy. ten police officers were injured last night in belfast riots after a demonstration turned violent. protesters were blocked from marching past a catholic district. >> historic literary event. the publication of the newly discovered novel from harper lee. the best-selling author of "to kill a mockingbird." "go set a watchman" on sale today, the first novel she published to publisher. >> the snow pile that wouldn't go away finally did. marty walsh announcing that the massive snow pile in the seaport district finally melted. the snow from the winter
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remained until now when a stretch are of warm temperatures did it in. back to you. that was no snow job. had to do it. >> i'm proud of you. with a straight face. >> has your mother read it? >> amazon got that book to her by breakfast time today. you said there were reviews already. >> on amazon this morning. it came out at midnight. people who got it on kindle were finished by the time everybody had breakfast. >> cultural phenomenon. 30 minutes to go till the close. dow up 92 points. >> a top trader tells us what he is keeping an eye on in this final critical, most important half hour of the trading day. >> twitter shares up nearly 8%. you see the spike there today. but when it comes to omega-3s, it's the epa and dha that really matter for heart health.
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welcome back. take a look at shares of amazon hitting an all-time high on the eve of its first-ever prime day promotion that will offer discount for its $99 a year prime members.
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shares up 4.6% today. it will offer more deals than black friday. some of the deals will include $75 televisions. >> we've got sue grasso. doesn't get better than this, right? let me start broadly first. quiet day volumewise. we are seeing another rally here. >> we've been doing this for a couple of weeks trying to look forward to what's on tap. if you think about it, what did we see? we've seen greece monopolyize the headlines. we are still ratcheting higher. i don't think we are closing the book on any of those things. the fear trade has been sell the market.
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>> we had financials out today. they are not created equal. everybody loves the financials. not all those stocks have been going in the same direction. >> look at favorites jpmorgan, goldman. both up 10% year-to-date. bank of america down 4 and change the year. they buy the favorite. jpmorgan goldman the crowd favorite. if you look at the mortgage revenue down 21%. asset management down 21%. you are not getting that full story. analysts lowering that hurdle so that companies can jump over them easily. that's concerning for the market. >> what level are you washing the s&p right now? >> i look at the cash. 2113 is that next retracement level. from that 2134 high down to that 2044 recent low. keep an eye on that. if we cross over that, they are
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fully off to the races. >> micron up about 11% on reports it could be bought out by china's singua group. first of all this would be the biggest, i think, take yoifrover of a u.s. company by the chinese is that right? >> that's true. the intention here is not to really buy certain assets and try to increase capacity and end up selling memory chips. i think the intention here is to plan for information technology. intel owns 20% of singua technology. i think this acquisition makes sense. it's more strategic in nature.
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i do expect them to increase the bid. it has nothing to do with china trying to dominate memory industry. >> i think the fact intel owns 20% of singua unigroup. very recently as of may of this year purchased 51% silver and networking assets from hewlett-packard. does create a back door channel with regulators. the fact intel is involved, hp has sold certain assets to them does make it easier. technology companies bring new shareholders and that is used to make certain acquisitions.
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>> there is a book in washington called "ghost fleet" and it's imagining a possible next world war between the u.s. and china which includes a lot of things chinese made that end up being used against the u.s. on a technological front. maybe now is just not the right time. >> if you look at consumer ganlts it doesn't give you an incremental benefit but you are able to store information in the cloud data center. the future of information technology is to provide infrastructure to build out these data centers. this is where intel is very active. their ownership of singua is a
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way to alleviate any concerns regulators may have. intel is trying to open a window in the china market. this acquisition fits with intel's recent acquisition of altria. by putting all these pieces together, having a chinese entity involved, i think they are trying to put together a portfolio of ips so that it would position both parties well for the future. >> all right. >> meaning intel and the chinese entity. >> thank you for being here. twitter spiked nearly 8% at one point today midday. turned out a fake takeover report fueled that rise. >> >> eamon javers has more on this story. >> they've done a deep dive into what we know about this strange incident involving a fake bloomberg news story. starting on july 10th somebody
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registered the website used in today's hoax with a panama p.o. box so we can't figure out who registered that website. today take a look at the chart here of the trading. you get a sense of the timing and how quick this was. about 11:39 east coast we saw a market spike in twitter and saw a tweet touting a link to that fake website with a fake bloomberg story on it. the stock rocketed up. 11:45, a bloomberg spokesperson said the report was a fake. you see the rocket right back down. a fast and bizarre incident in the markets. the s.e.c. had no comment in response to our calls and e-mails today. >> i give a lot of credit to dominic chu. i was in the newsroom and he
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came running back. he said look at the website address on this thing. it doesn't look real at all. he was on that very early on in that case. >> that is the reality in media today. things are moving so quickly and there are so many hoaxes now i've got to be attuned to it. >> hardly a week goes by twitter is not subject to a false buyout rumor. the buyout that cried wolf. >> we'll believe it if it does happen. >> shares of twitter up today. dow is 85 points higher. >> sergy marchionne is revving up the auto industry's engines.
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the auto business is all about deal making, whether it is moving cars off a lot or making moves in the corporate suite. >> and sergio marchionne is in detroit today.
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phil lebeau is in the motor city joining us with more. >> the main question people have is whether or not fiat chrysler can find a merger partner in the relatively near future. sergio says he is not actively talking with ceos right now but still maintains fiat chrysler is better served combining with another automaker. >> every tom dick and harry expressed a view. can't be done. it failed before. this will not work. we are desperate. all that nonsense. we are just about ready to release q-2 earnings. we'll make the call there whether we are desperate or no you decide. but i think we keep on forgetting the fund pavemental premise of the pitch. the pitch was there is a better way to run this business that benefits everybody. there have been others who said i think you're right. i think we should do something about that. >> but that's it? >> yeah. i haven't shared my plans with
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anybody else. i've done a lot of work on the inside and continue to do it. >> that work on the inside includes a uew contract. they are beginning formal negotiations between fiat chrysler and the uew. the big difference is the wage scale. 45% at $19 versus $28 an hour. here is the real issue. fiat chrysler all in hourly compensation $47 an hour. it allowed them to become profitable. as a result, uaw wants more of those profits. one bit of news, sergio says they will have the filing of the paperwork for the ferrari ipo in a few days. look for it within a few days. then we should have the ipo some time after october 13th the one-year anniversary of the
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merger. back to you. >> very good. phil lebeau there. >> can i ask real quick do we know the ticker for that ipo? >> no. we'll find out when the filing happens. >> all right. looking forward to it. thank you, sir. >> tweet us. what should the ticker be for ferrari? >> dow up 81 points. we are at 2110 on the s&p. steve grasso looking for the next level around 2113. focusing in on jetblue today. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here we're here and we've got your back. legalzoom. legal help is here.
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nine minutes left in the trading set with the dow up 81 points. how you been? >> great. nice to be here. >> welcome back to the new york stock exchange. >> overall what do you make of market action here lately? we had four up days in a row here for the markets overall. >> right now we had a 4% correction again. we didn't get over the 5%. we had a 4% correction in the s&p. everybody was worried about throwing in the towel is this it, et cetera?
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bull markets die of boredom. we are in summer. greece solved for right now. i think yellen is coming up tomorrow. she should be positive. the core four earnings like i talk about citibank, goldman sachs, bank of america and j jpmorgan jpmorgan. earnings estimates are so low the only thing we can do is be. right now technically the market looks good. i think jetblue was the same market cap as the company who we also were looking at spirit airlines. same market cap. jetblue at 6.8 billion.
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a save is down to four point change. airlines in general delta is going to be reporting. that's the refinery of the airline space. you see refineries doing well. oil has gone nowhere. we have a problem with government intervention. there are all kinds of lawsuits hitting the fourth quarter. they'll be consolidated. >> how do you feel about airline fees? >> are you baiting me? >> you have to pay for water blankets, head phones. they are maxing out the airline model. people want to fly. >> for good or ill?
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you can always fly private wheels up. >> sure. cnbc won't raise the travel budget. >> that is the funniest thing i've heard. >> we are coming back with the closing countdown. >> after the bell, corporate hacking. billions of dollars at stake. lives in the balance. this may sound like the latest news headlines. ♪ if you can't stand the heat, get off the test track.
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ahh, you're good. i like to bake. with at&t get up to $400 dollars in total savings on tools to manage your business. >>. >> about three minutes left. time for the countdown. mr. pisani here in my favorite suit. i did get one. a kuwait rally today. low volume but very quiet. we didn't get the volatility we had lately. yesterday was one of those days where it rallied at the open and just stayed there. climbed a mountain today, bob. here we are finishing off the highs of the day. it was $600 million to buy on the close, but looks like some of that is paring off right now. one of the interesting features, the oil market after the
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announcement of the deal with iran. did you get that sell-off this morning. then it came back after word was getting out they were figuring things out that it's going to be a while before we see oil from iran coming on the market again. one trader was saying this looks like short covering to him as well. let's just revisit that crazy story today midday. twitter. word got out there may be an offer on the table for them. turned out to be a fake. didn't take long for the market to bring it back again. finishing up 2.5%. >> glad this went up and down again. if you were the fwi buying there, it's not there was no damage done. >> i wonder if they'll cancel those trades. >> i looked and checked all day. they had not canceled them. >> banks are reportedly getting some more tomorrow. >> they want banks. the action today suggests okay earnings. it's not what it's about. it's about rising interest
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rates. once again, they are still interested. normally you'll sell off going into the banking season. here on an up day. these were not disappointing results, but they weren't knock them out of the ballpark. >> it was cost cutting. >> modest loan growth, cost cutting was big. net interest income is not expanding. you are not able to charge enough for loans out there. they want this because they are expecting rates to go up. we are waiting but they are expecting. biotech, xbi another historic high. historic high. do you remember it was a year ago when janet yellen was talking about small cop stocks and biotech, the valuations might have been stretched? janet yellen stock-buying advice? here is where it was and here it is now. this is the one-year anniversary of her comment. >> thank you very much. >> send you the e-mail later.
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>> appreciate it. we'll see you tomorrow. dow up 75 points today. we are at 2108 on the s&p. stay tuned. very interesting. transportation sector getting clobbered. his take where it goes from here. coming up on the second hour of the closing bell with kelly evans. thank you. welcome to the "closing bell," i'm kelly evans. this rally finishes with the dow up 75 points on the close. s&p 500 up nearly 0.5%. nasdaq closing above 5100. look at crude oil up 1.3% on the session today. there's been an agreement the u.s. has potentially reached with iran. nevertheless, some say that was already priced in. others said it won't affect supplies for months. we have energy, one of the strongest sectors on wall street today. joining our panel to talk about
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all this with other big earnings looming in minutes is our panel. mike santoli first to you. that was a brief correction, if that's what it was. >> real volatility the last several days. obviously, you had a lot of scaring of investors out underneath the surface of the index. that was the story here. number of oversold stocks in sectors was extreme even though the overall index didn't get too oversold. energy story is probably the most interesting thing. you had a kind of buy on the bad news effect when it came to crude. i think it was priced in. >> dr. j what about you? is it a crude story that commends the most attention? the fact that this rally has continued despite the fact we still have to wait on greece, the vote with the greek parliament tomorrow? >> and 17 other parliaments.
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i think the story about iran was the focus today. it should be. even though that oil supply won't come on the market for months you're right about that, and even though it's not a slam dunk it will probably be stopped at first through congress. then of course some veto from the president and turned back around. we'll have to see whether or not he can actually get that done. nonetheless, there were some very active bets in the energy space all day in particular for exploration and production suppliers. people that would provide valves or pipes or whatever else because the infrastructure there, and i think some people are also looking down at venezuela, as well. get those both back on in production. closer to capacity and you'll see a significant surplus unless saudi does something. >> the retail sales number this morning wasn't that great here in the u.s. people are saying maybe the fed isn't going to be so anxious to
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raise rates. that feeds into the argument for dividend paying stocks which you are building an etf out of. >> if you want a new thing to worry about, i looked at that j&j earnings report and the negative effect of currency blew me away. that is a ton of effect. anyone selling outside stateside, we have to look at this currency thing again. i think the fed will say that's a big number. 8% delta on currency. you can't ignore that. >> what do you do with it? if j&j is in your bonnet? >> they are. >> what is an investor to do about it? >> nothing. i have to assume in the long run currency will work itself out. the company is firing on all pistons. if they hedged out they would have had a blow away quarter even so they beat. they were able to work it into
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their number. i like it as we are cruising into earnings. i don't see data sets being three negative in a row. >> one step forward one step back? >> exactly. people are looking at free cash flow which is why i love dividends. always have. now i'm more romantically involved. >> yes you are. guy adami joining us today. we can hear you loud and clearly on this rally. >> sorry about yesterday. it was my fault on the microphone thing once. happy birthday, kelly. happy birthday. >> it's not for a couple of days. thank you. >> great to have kevin o'leary onboard. what i do think about this rally? the market wants to go higher. the move energy is interesting. look at the move in the refiners today. maybe it is the classic sell the rumor, buy the news. today's reversal in tesoro
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worries me. i said the refiners were the trade. today's price action is somewhat worrisome. ken mentioned j&j. pepsico said the same thing. currency is a huge story and will continue to be a huge story. >> guy, same question to you. should people shy away from companies that have this exposure? the u.s. dollar hopefully rallying if it continues to on better u.s. economic news? and companies have to deal with it? >> companies have to deal with it. i don't think the guys and gals playing the home game can do anything about it, necessarily. what you can do is watch for the companies that have currency exposure. we talked about this before. currency is not this week's story. it's been a story for the last nine months for companies to use it as whatever word you want to use excuse or otherwise to me isn't that cool. >> all right. hold thoughts there.
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looks like csx is out with quarterly results. >> csx reporting 56 cents a share. revenue just shy of the $3.1 billion the street anticipated. that revenue number representing 6% decline. the stock is up. here are some of the reasons why. we have an all-time record low operating ratio, one of the metrics that people look at for railroad stocks of 66.8%. the street had been expecting that to be 69.1%. volume, total volume for the quarter was down 1%. that was about in line with what the street had been anticipating. csx giving guidance for full 2015 says it expects to deliver mid to high single-digit earnings pare share growth in 2015. the upper end of that range has become more challenging given the current energy environment.
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talks about the fact that coal continues to be a weak spot. shares up 3% after hours. again, a miss on the top line but a beat on the bottom line. back to you. >> thank you so much. dr. j we know the stock had been hit hard this year. what do you think about these results? >> like them. some people were betting strong that they would see some up side out of the stock. they bought more than the open interest at the money options and out of the money options. i don't think there is anything not to like here. i've seen investors coming back into kansas city southern. institutional investors. the fact they are in csx, as well. i think the railroads were sold off too hard. we both know that most of that was coal related. some of it was oil related.
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>> we know this is a revenue decline what would you do with the railroads here? >> this stock specifically at 15 times earnings, this quarter is good enough for relief rally. relief rally up to 35. i don't think this is gangbusters enough to believe we'll take out that $38 level we had so much trouble at a couple of times over the last year. if you are it in i think you might have room up to $35. at that point you pull the rip cord and reevaluate. >> guy we'll let you go and get ready for "fast money." coming up with the crew talking google and cost-cutting measures are a new era for the tech giant. >> and kevin o'leary how did you come up with uso? >> luck of the irish and usa.
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i care about volatility. mostly the quality of the balance sheets. this is a long-term holding for my family trust. i couldn't find one like it so i made my own. >> prime minister tsipras trying to sell the bailout on national tv right now. michelle caruso-cabrera joins us from athens with the latest. >> there are two journalists and questions seem appropriate probing and tough sometimes. he's been trying to sell the deal. he said i don't like this deal. we were forced into this deal, it was the best deal we could get. the whole procedure was undemocratic. we have to prevent a grexit. the wealthy would have been fine but the poor would have suffered dramatically. i went to russia, i went to china, tried other places. this is what we could do.
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i see the interview just ended. it's been about an hour and ten minutes. he said the banks will reopen gradly. increasing withdraw limits will happen gradly. he is getting a much better understanding how the banking system works compared to a few weeks ago when he was saying the banks would reopen within days of doing the referendum and getting a deal. clearly, he understands it's a very different situation. he took responsibility repeatedly for mistakes made. he was asked about his controversial former finance minister yanis varoufakis. he says he was a brilliant economist but that doesn't make him a good politician. he wasn't well liked. he said the german finance minister back in march or april told the finance minister that he wanted to do a planned grexit but never but that was always
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the german finance minister's idea and that is something he, himself, never entertained. he did ask the question to his finance minister, what would the consequences of a grexit be? back to you. >> do we know the timeline tomorrow for the vote for investors back here who are watching closely to see if it does upset this rally? mis. >> not clear. historically, the greek parliament votes at midnight. i wouldn't expect it to be any different tomorrow. >> another long day for you michelle. thanks for joining us as we follow along with the negotiations taking place in greece. facebook topping the $250 market cap mark. just three years after its ipo. that makes it the fastest ipo company to do so, breaking google's previous record.
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should facebook heed google's cautionary tale of growing too fast? >> a chinese company reportedly facing a huge takeover of micron technology. would that deal put our national security at risk? keep it here. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster
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welcome back. yum! brands out with earnings. let's get straight to dominic chu with numbers. >> stock down 1.36%. the company reports earnings per share of 69 cents on adjusted basis that beats the average analyst estimate of 62 cents. revenues come in a tad bit light. $3.1 billion. analysts were looking for $3.19 billion. an interesting headline coming up here. they report that china's comparable store sales are down 10%. analysts looking for a decline but only by 8.8%. same store sales decline in china worse than expectations. on balance going through the report. i've got a stock marginally lower down by 0.2%. right now on balance earnings
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beat, a sales miss, a china same-store sales miss and the shares are down by about 0.8%. back to you. >> thank you. >> that is a big drop in china at 10% decline in the business it's doing over there? >> that would be and they had issues as mcdonald's over there a lot is the food chain and how secure it is. how well the animals and poultry products have been taken care of. >> and not currency. that is a comp number and you don't have currency effect there. >> sure. this is a story just about supply and chain issues it's been battling forever fine. if it's about organic chinese demand, it will have more people worried. race to $250 billion. facebook hitting that level three years after its ipo.
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is facebook rising too far too fast? john fortt joins us on set to weigh in. extraordinary growth. is that the time we are living in or worrisome? >> it's not as surprising as it appears when you first look at it. let me run down a few points. when facebook ipoed its mark cap was around $100 billion. google was around $23 billion. google almost got to $250 billion just as quickly. except the financial crisis hit while it was around $200 billion market cap. it with everything else tanked and took a long time to get back. google isn't almost four times older as facebook if you look at their stock charts. google was founded in 1998, it's almost 17 years old. facebook is 11 1/2 years old. this is like a whip smart middle schooler and really smart high schooler going head-to-head. not like a toddler and a
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teenager. part of this is a story about companies going public later at higher valuations. that was facebook's story. >> therefore investors had a much greater benefit from google's run at 2 1/2 after its ipo, twice as good a return as you got in facebook. because facebook waited so long. >> that's absolutely correct. now between the two i happen to luke facebook more than google at this point. i might be in the minority, but i really like what they are doing with video. i like how they are addressing their audience and holding on to it. not so much alienating folks that get alienated on twitter. i use twitter all the time, love it. but they have a problem bullying on twitter than facebook. >> that is an interesting one about google. we read these reports, cfo pulling back on expenses and
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trying to run more disciplined. what lessons are there here? >> every three or four years google goes through one of these cost discipline phases. they've been different. around the financial crisis they did lay-off recruiters and tightened the belt and cut products. then they start doing their balloons, self-driving cars, almost flying cars at this point. facebook has been more disciplined all along. you haven't seen this do this wild retrenchment. mark zuckerberg has been prescient about the calls he made. when you see the importance of messaging for growth in international markets, facebook diversified at a young age.
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>> anything you would add to that? >> big picture, the question is how big is the digital ad pie growth? increasingly it's going to seem like that. you are hearing about facebook video versus youtube for google. as an investor, there are trillions of dollars of market cap now dependent on the pie of digital advertising growing fast. >> all advertising is becoming more and more digital. how can facebook and google leverage that into television and other areas? if they can it gets bigger. >> thanks, john fortt. coming up, csx reporting earnings a few moments ago. the cfo will tell us how slowing demand for oil and coal are impacting his business and the broader health of the economy. it's been 20 years since national gasoline tax has been increased. we'll hear from one congressman who wants to double it to fix our nation's crumbling infrastructure.
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you are battling down turns in commodity markets, but what would you say about the general demand for all these inputs into our economy? how is the u.s. performing? >> i would say our economy continues to grow about with 2.5% range like we've seen the last couple of years. you have the added dynamic here this year with the fact that the u.s. dollar, the strength of it, is having some adverse impact in some of our markets. overall, the economy is continuing that slow and steady growth we've seen the last couple of years. >> perhaps the biggest surprise has been the transportation sector hasn't benefited more from the drop in oil. how much has that helped you or been a hindrance? >> overall, when it comes to what we charge our customers, we have a fuel surcharge in place that keep us neutral from a bottom line perspective. when oil goes up, it increases rates. when it comes down, we give it
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back to customers. about $180 million this quarter. overall it was neutral. clearly over time lower fuel prices should help the u.s. economy. it's also impacting some of the other markets like crude by rail, for example, where we are seeing some declines here as we look out to the rest of the half of the year. >> bringing in the panel here. >> quick yes about intermodal. i noticed the coal numbers, but we expected that. intermodal is surprisingly strong for you. especially begin many of the retailers, which the containers going on your trains many of us would think in those containers are exactly what john is buying when he goes out to the store. that traffic was up 5% year over year, very good number. who are the folks that are putting those additional goods on to the intermodals if it isn't being bought by consumers
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because spending was down a little bit? >> that is a great question what we have is a long-term secular trend and able to convert traffic currently moving on the highway system over to rail-based solution in partnership with trucking companies where we can do the long haul and they do the pick-up and delivery. we frankly think there is an opportunity to convert over 9 million loads that are out there on the highway system today that we can convert over time and bring into rail-base solution. we've been able to grow that market about 7% a year on the domestic start of the last three years. our domestic intermodal this quarter was up 9%, a portion of that 5%. we think there is great vibrancy there. >> there was news today highlighting how the industry is trying to soften efforts in congress to have additional safety regulations on rail transports of crude oil energy products. is that a major issue for the
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industry? is a big swing factor for costs you might see down the road? >> we always look for balanced regulation. while safety is paramount to everything that we do, we do want to make sure whatever regulation comes our way makes sense from a safety perspective. we work very hard on a daily basis to make sure that a safe railroad and safe industry becomes safer. >> thanks for joining us this afternoon. >> thank you. time for a cnbc news update with sue herera. here is what's happening. iran's ayatollah expressed gratitude for concluding the nuclear deal with world powers. khamenei made remarks during a meeting with the cabinet members. >> passers-by suffering injuries from falling debris when an unoccupied building collapsed in
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the brooklyn borough of new york city this afternoon. the building was believed to be slated for demolition. it is that time of year again. the first doses of the 2015/2016 seasonal flu vaccines have been shipped to the u.s. pharmaceutical company sanofi expects to deliver 65 million doses around the nation. nasa officials celebrating at the flight operation center in maryland when its new "horizon" spacecraft flew within 7,800 miles of pluto this morning. official conformation that the craft survived won't come until tonight. the spacecraft was launched 9 1/2 years ago. it's traveled some 3 billion miles. they are expecting incredible pictures from that spacecraft. i think that is my favorite story of the day. >> a lot of neat events to help people take advantage of it and share this unique moment.
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>> the u.s. is now the only country to have visited every planet in the solar system by these devices. it's great. >> sue herera, thanks a lot. appreciate it. maybe on the verge of another big deal in the semiconductor industry. the chinese company reportedly ready to buy micron. would this deal be a potentially game-changing national security risk? ohio governor john kasich preparing to be the 19th republican presidential candidate. can he win over conservatives when he supported expanding medicaid on obamacare? can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?
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welcome back. another strong session today. gains of about 0.5%. dow and s&p closed over 2100. take a look at crude. not a real story. up almost 2%. back to $53 and change. >> we have a news alert on hedge fund citadel. >> interesting results out of the chicago-based citadel one of the world's biggest hedge funds. equity strategy up 10.4% through june meta fees.
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multistrategy funds up 9.4%. equities were a big gainer for them alongside fixed income and commodities to a slightly lesser degree. citadel manages about $26 billion across multiple hedge funds. very interesting. 0.72 returned 11% through june and average hedge fund up 2.4%. these guys are doing far better. >> they are. china chip maker making a bid for micron. chips aren't just used in smart phones. semiconductors play critical role in aerospace, defense and everything from communications to aircraft guidance to missile launches. could this deal be a threat to our national security? joining us the author of "cyber fraud, the web of lies." bryan, welcome. should this deal go through? >> yes. thanks for having me. >> you've got it.
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with regard to this takeover do you think this deal should be approved? >> absolutely not. the company that is going to be making the bid is a state-owned chinese company that was a spin-off of the m.i.t. of china. >> that alone is reason enough not to do it? >> china had a mandate that said all the technology should be end-to-end. we should own all of it. i feel like i'm the only person in the room who realizes the building is on fire. this absolutely should not go through. >> do you think right now there is an inclination on the part of the u.s. government to give it a fair hearing or they would be opposed to this? >> as far as a reflex, i think they have the governing council people are going to look at this and say well it's a
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state-sponsored thing. we had state-sponsored indications that there's been the opm breach and other things that have come from china. they'll weigh all of the different evidence against it. it's almost a near zero probability that it's going to happen. >> i do have to agree with him as far as it seems there would be a whole bunch of folks that would line up against this national security council and others that might not want this deal to go through. i've seen other deals blocked. we've seen energy deals blocked in the past. i would not be surprised to see this blocked. i also believe the bid wasn't exactly attractive enough at the price. it was almost as if somebody was out there with a stalking horse trying to get something stirred up to get a higher bid. >> we had a guest that suggested this was intel trying to do this
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deal with micron. why not just have them do it directly or is that what it's about? >> i don't know if that's what it's about. if it's $21 a share this stock was $33 months ago. micron itself might want to retreat into a position of saying block this deal. we don't want part of this at this price. i don't know what the tactical calculations are. it seems like the market is saying, there is some kind of opportunistic value spotlighted here. the stock was up. >> if regulators took you into a room and said tell it to us straight, why shouldn't we let this deal go through what would you say? >> if china has the actual hardware under their control -- i'm not saying everyone in china is bad or the entire government is evil, but the possibility becomes exponentially worse when they control the hardware. it doesn't matter what you do with the software if the
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hardware has been compromised. there is evidence chips three years ago had a back door built into them to be remotely controlled. this isn't something new. this seems like it would be more of a political stunt or some sort of stock manipulation or some sort of thing that is outside of just them buying this company. because i don't think that is going to happen. >> bryan thank you for joining us. on the potential for a micron deal. market alert. oil inventories. >> from american petroleum institute, they are saying u.s. crude inventories stock piles fell last week. crude inventories fell 7.3 million barrels over the course of this past week or so. a 7.3 million barrel inventory drop. analysts were expecting a decrease of 1.2 million barrels. did you see a little speak.
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it's still up about $53.29. up 2% so far. again, we did see oil move slightly on the fact that the american petroleum institute says supplies for crude oil dropped by a little bit more than analysts were expecting. back to you. >> bit more wind in the sales for oil. >> more than 18 cents of your gasoline price goes to the federal government. my next guest wants to double that to pay for transportation projects. could that aggressive tax hurt consumer spending? plus usa network's new hacker drama. we'll speak to the star of this show.
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to help you keep rolling with confidence. go long™. ♪ welcome back. pot holes roads, bridges and highways. my next guest is co-sponsoring a bill pushing to raise funds by doubling the gas stacks. rick larson of washington state. welcome to the show. >> thanks. appreciate it. >> let's begin with this legislation. have new the past supported gas tax hikes or is this a first time for you? >> it's not the first time i supported a gas tax increase. this is the first bill i've been on since being in congress. i've been on the transportation committee for 15 years. frankly, we've been doing a little bit of fiddling while rome has been burning. our infrastructure in this country is falling apart we need a long-term plan to finance its
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rebuilding and maintenance of it. >> are you going to this option because it's the best option or the only one available? >> there are other options discussed. that is a great question. there's been a lot of talk and not a lot of walk. this bill would increase the gas tax by 15 cents on top of the 18 cents we currently pay at the federal level that. 18 cents only has an 11 cent value. the last time we increased the gas tax was 1993. we have quite a bit of work we need to do around the country to ensure income competitiveness. the pro-trade democrat is one thing to vote for trade agreements as i've done, but if we are not helping our own economy move the trades and goods into the markets we won't be taking advantage of trade policy. >> you mentioned it's been so long since this tax increased and there is always an annual shortfall funding the
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transportation projects. how much would this increase leave for addition ideal infrastructure spending? how much of a dent can it make? >> great question. if you look at what this does, 15 cents on top of the 18 cents that's 33 cents. if you looked at in 1993 when we did the last gas tax increase, if that group by inflation that would be 30 cents equivalent. talking about three more cents. after all those numbers what it means is about $19 billion more annually over the life of this increase for infrastructure improvement around the country. >> congressman, the gas tax if it is raised by a few cents will probably be looked to by everybody bringing legislation out there. why should this be used specifically for infrastructure when revenue and looking for sources of its fund is going to be a huge priority the next couple of years? >> we have a highway trust fund.
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the gas tax we currently collect from the taxpayers we have to appreciate what the taxpayers are going through. what they are going through right now is on average spending $5.15 per driver for maintenance on their cars because of the poor infrastructure quality we have in this country. i think one of the selling points has to be on any gas tax increase is the repair and maintenance of our roads, our bridges, highways and transit systems because people are paying for it through maintenance right now. >> that is a point congressman. we wish you luck with the californians who are already paying through their noses on gasoline. thank you. john kasich. john harwood sits down to talk everything health care to wall street. this year marks the fifth anniversary for cnbc's delivering alpha conference.
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republican presidential hopeful governor john kasich has few policy and spending ideas that don't usually follow along conservative party lines. john harwood sat down with him to discuss what some of his plans are and joins us post nine. what did he say? >> that's what's so interesting about john kasich. he is interesting not just because he's the governor of one of the more important swing states in the country but doesn't follow down the line with conservatives on every issue, including president obama's expansion of medicaid. >> people look at this and say he's implementing obama's medicaid program. >> there is no money in washington. it's you money we send from our state of ohio to washington that i was able to bring back. i just was an early mover. the fact is that overall we have a healthier society. we've been able to reform and manage our costs about as well as anybody. >> you can defend that position
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when scott walker, ted cruz -- >> i'm not worried about defending anything. this is what i'm for. >> a bunch of your colleagues have, as you have, embraced the common core educational standards, but now that some of them are in the race for president, they flipped and they have disavowed those. >> i can't tell you why they've done what they've done. what i can tell you here is that we did not have the kind of high standards that i thought we needed in ohio. we are driving high standards and then the curriculum to achieve those high standards is being driven by local school boards with parental advisory. >> you are not backing off that? >> why would i back off high standards and local control? what else would i be for? sometimes people say kasich is not a conservative. well, balance budgets, cut taxes more than anybody in the country, have aç history of doing that. we have to reach out to people
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who live in the shadows. sometimes i don't know that everybody gets it. >> we are going to find out when john he is going to be conservative enough for that gop primary electorate. jeb bush is trying to do the seam thing. >> john how much though has donald trump changed the calculus here? if at all. i mean, in a sense has he kind of occupied that place if you will that conservatives are looking for and let everybody kind of position themselves differently? less to their liability? >> i don't think donald trump is changing what john kasich's going to do. he is grabbing a chunk of the republican electorate and holding it for a while. how long can he hold it? i think other candidates are assuming he's going to fade out of the headlines, ultimately disappear, and the question's going to be who can grab that vote? john kasich's probably not going to get that vote. he's hoping there's enough especially in new hampshire, that's his breakout potential state, to make a stamp and run the long distance in this race. >> john one of the themes in
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people handicapping the republican prospects for the past couple of years is gee, look at that governor class. it seemed as if they dominated state houses. some of the questions in the back and forth you had with him there raises the question of when you actually aren't the executive, you had to make these decisions, these tough calls does it hurt your potential chances in a national forum? >> well nationally voters have shown a propensity to like governors as presidents. so that's a good thing. that's something that is going for scott walker. it's going for jeb bush as well. he's going to emphasize more on the campaign trail not medicaid or common core but what he's done on taxes and spending. as he said to me i took office with an $8 billion budget hole. we are now $2 billion in surplus, rock solid structural balance. that's going to be a core message for republicans. >> and he cut taxes, as you say, to do it. >> that's right. >> part of that was he actually cut taxes to do it. that will resonate. >> he argues that his $3 billion tax cut was larger proportionally than any other governor in the nation.
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interestingly, the cato institute, the libertarian think tank did a report card fiscally. they gave scott walker a b. they gave kasich a d because his net tax cut included some tax increases. he said that's silly, i'll go out and make that case on the trail. >> what were you guys eating? >> we were eating italian. this is an italian restaurant in westerville, a suburb of columbus, where john kasich has a regular bible study. and he is going to mention and use his faith on the trail. that's a big part of his argument. and remember evangelical christians are a big part of the republican electorate too. >> what did you order for dinner? >> i had veal parmigian. and he had some kind of penne pasta, i think. >> i'm just interested. these little things can reveal a lot about people john. >> exactly. >> i love the series speak easy john harwood. appreciate it. cyber security provider by day. vigilante hacker by night. up next we talk to the star of the hit series "mr. robot" live at the new york stock exchange. we're back in two minutes.
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verizon say neversettle. t-mobile agrees.
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never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back. welcome back. it's the cyber hacking tv show that some in the community are saying is the truest dramatization of the hacker culture. it's usa network's "mr. robot," depicting a man, elliott alderson, a cyber security engineer by day and a hacker by
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night. >> if we hit their data center just right we could systematically format all the servers including backup. >> that would erase -- >> all the debt we owe them. every record of every credit card loan and mortgage would be wiped clean impossible to reinforce outdated paper records. it would all be gone. the single biggest incident of wealth redistribution in history. >> joining us right now is the star of the show rami malik. you can catch "mr. robot" 10:00 p.m. eastern wednesdays on usa. thanks for being here. >> pleasure. >> what kind of response have you had from the hacker community? >> they've all touched on how accurate we're portraying everything. so that's -- you know coming from hackers, i think that's a really nice accolade to get. and some big hackers who will remain unnamed. >> anonymous? >> anonymous perhaps. they'll remain anonymous. thank you. that was nice. >> i'm interested though in
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the show itself and some of the themes it explores. it's not always clear whether you're acting for good or for evil. there's drug use involved. there's a whole kind of narrative to the camera that makes it unclear as to whether all this is going to be some sort of fantasy in your mind. what do you think the central portrayal here of the hacker really is? >> i think it's someone we can all identify someone who feels maybe compromised by the society he lives in what freedoms we have what our true fremds are. the privacy we have. and you get to see that from his point of view. just how much information he can garner sitting at home on his computer and how much destruction and havoc someone can read for good or not necessarily altruistic purposes. >> to what extent did you have to immerse yourself in that culture at all? do you have to try to get the credibility in a more personal way? >> yeah. i mean, i have a lot of help with tech advisers and whatnot. but at the same time he's -- you
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know elliott's a lot like all of us. he's kind of disaffected by the way things are going. the generation i grew up with definitely feels that way. he works at a corporation. he doesn't necessarily i would say look forward to going to every day. people i think can associate with him on that level. and he's also having a tough time communicating with people. so he hacks into their lives. and i feel like that's how we're communicating these days is social media. how much are we really learning about one another? >> talking face to face. >> yeah, i read this statistic where over 50% of young adults would not join social media if they had it back. >> it's absolutely a cutting-edge show or bleeding edge even, rami. i've enjoyed watching it. it's very cool. and it is a little disconcerting at the same time when you start
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to think about what could unravel just like what almost unraveled down here on the nyse just with the software glitch. >> how has it changed your own day-to-day life if at all? anything from changing passwords more frequently to trying, to i don't know, use social media less. >> yeah i get nervous about even opening up my laptop thinking that someone's peering in. and i don't think that's ludicrous anymore. >> especially not given the role you're playing. >> especially not the role i'm playing. i'm discovering the capabilities of what someone can do. just anybody. and that's the fear i think a lot of us are having is that if we have some type of attack it's not coming from human warfare, it's going to be a cyber attack. and it's happening from a guy like elliott, who has incredible amounts of power just sitting behind a keyboard. >> rami it's a point that has, as you know kind of hit the cultural -- sort of hit people and generated a lot of conversation. thank you for joining us here
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and good luck with the rest of it. >> it's a pleasure. i hope you guys keep watching. >> we'll be following along. >> absolutely. >> rami malec is the star of "mr. robot." that does it for us here on "closing bell," guys. thank you very much as well this afternoon. "fast money" coming up in just a few seconds. melissa leerks, what's on tap? >> news just crossing celgene is making a pretty major acquisition. we'll have the detail straight ahead, kel. >> over to you guys. >> live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee. your traders on the decemberric pete najarian, dan nathan karen finer sxhan guy adami. google's stealth rally. the tech giant soaring today after a big -- as google looks to cut costs are they spending money on the right things to keep the momentum going? plus janette yellen sounding the alarm on biotechs just one year ago today but boy, was she wrong. a look at the best performing players in the space since then and whether there's still time to get in. but first let's get to the story of the day. stocks posting their fourth straight day of gains but it was technology that was a real stando

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