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tv   Closing Bell  CNBC  November 19, 2015 3:00pm-5:01pm EST

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intraday chart. it's down 3.5%. why this chart may be the best tell on the u.s. economy. >> if you keep saying this chart they're not going to show it. >> they showed it. >> i think stacy was calling from inside a coleman cooler which is named by jardon. >> "closing bell" starts now. welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth. the big action today is the ipo market, both square and match surged in their debuts. square priced well below expectations and ironically it trades now in the range that it originally was talking about. should investors still be looking at these stocks with a cautious eye? we will talk about that coming up. >> plus a warning from united healthcare sending a chill throughout the health insurance sector, the company says it could leave the obamacare exchanges within the next two years. aetna is down more than 7%,
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anthem a similar decline, cigna nearly 6 and health nearly 6. humana down as well. we will discuss whether other health insurers could follow suit. >> best buy and target both cited weakness in electronic sales in their earnings report. we will tell you how other companies with hot holiday items could trade leading up to black friday which is next week. >> and the ring leader of those paris attacks has been killed. we are live in france and belgium with the latest developments. and the house just passed a about i will to make it more difficult to let syrian refugees into this country. we have the co-author of that bill who is also a former navy seal joining us shortly. >> let's start with the ipos. square's first day of trade, kayla tausche at the trading post right here at the exchange right behind us. >> bill, it is a pretty solid squa for square shares did despite the fact that square did price below that ipo range of 11
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to 13 bucks, it priced at 9 but ironically it was the fact that it priced so low that caused it to rise today. had it priced within that range sliekly that would have spurred selling and that did not happen because investors some of those key long openly investors felt comfortable about the valuation. the stock jumped right from the open, it opened at $11.20, sank slightly down to a low of $11.05, but then when ceo jack dorsey came on cnbc it reached the highs $14.78 before settling into levels in the $12, $13 range up about 43% right now. at these levels square has a market cap of $4.4 billion, much higher than that implied price from last night but still far below it's last private market valuation. you will have a lot of these unicorn executives and investors scratching their heads and realizing that the price that investors would have paid for growth maybe six months ago is a far different price than they are willing to pay today.
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jack dorsey said their company won't be unprofitable forever. but because hopefully the company got those shares into the hands of investors that are willing to hold it at least for some period of time, maybe they will be able to wait along the ride until it gets to that point. for now, guys, square trading just about 13 bucks a share. back to you. >> all right, thank you. because from one initial public offering to another let's take a look at how the match group and its debut is going over at the nasdaq, that's where seema mody is. >> match group getting love from investors today, up 20%. it priced its ipo at $12, the lower end of its price range, that perhaps helping the stock. in terms of its ipo raising about $400 million in it's offering, proceeds that will be used to pay down debt. match owns sites like tinder.
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about 75% i conducted an informal survey, about 75% have used an online dating app, many of those people citing option at and efficiency in finding a mate as some of the top reasons. keep in mind there are some skeptics out there, btig putting out a negative note and also saying that tinder could can ball lies match. we are seeing shares rise on its first day of trade here at the nasdaq. >> optionality and efficiency. >> seema mody doing the research for us. i like it, she is still in lond london, too, by the way. >> let's get to our "closing bell" exchange. today cnbc contributor heather hughes from sun america sundays, steve grasso is at post 9 and we have mississippi in chicago. steve, you were just regalg me, your thoughts on match group, you fit them where in the
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consumer staple category. >> to me it's like a pet stock, it's a pet food stock, right? you have to date when markets are bad, you have to date when markets are good. to me it's a universal thing. i think the competition is pretty good there, but we think that it's a universally loved stock pardon the pun by i love that informal poll by seema, informal. >> heather, meantime as we compare that with how square is doing, again, it priced low finally but having a decent session today. were you involved in any of these in doo other look appealing to you guys? >> no. i must say there is obviously the massive gap between public and private valuations that is becoming or has to be reconciled and we're seeing that trend play out among various different sectors within the ipo market. the technology ipos are down 60% this year from last year. so the ipo market is something we all want to follow and look at.
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we're actually looking at something -- money in motion, i guess, the $815 billion that has flown into corporate debt issuance. corporations are able to borrow at extremely low rates, we know this has been a theme of stocks buy back over the past year and i think if rates rise in december what will that do to the theme of corporate debt issuance and stock buy back? the funded costs are going to increase on all of the buy backs and debt issuance that we see. >> steve, let me ask you the broader market question. we took out some resistance to the up side with the rally this week, especially yesterday and we are holding here. what do you make of this? what's going on? >> i think everyone was waiting for that trillion dollar question of when they are going to raise rates. i've been vocal about this for the last couple months or so. i think they are backed into a corner that they cannot raise rates. obviously they are talking down the market, saying that they are
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going to raise rates, it's going to be a one and done. to me that's not data dependent. if you look at the technicalities, 200 moving day average in 2063ish range, you have the 50-week moving average in the same range, you have flat on year 2059. we're currently 2081 in the s&p cash. plenty of support here, these dips have been bought. i think you're going to have to see a nice penetrating in this market to break it right now. >> the biggest concern for me is that -- not that if we're meeting our targets or being data dependent or not in terms of employment and inflation, but if you don't think they're meeting those targets and there is a lot of global concern on the horizon that we need to take into account, well, we're at near zero rate so we are all hooked on this monetary morphine since 2008 that was necessary, but with near zero rates if a horrific global event unfolds again, that's what's scary, the
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fed has no more room to lower rates anymore. we would be looking at a negative interest rate situation which they have in some countries in europe right now. >> i think that's chapter one of rick's next book. >> what would you say to that, rick? >> well, it's hard to argue with any of it. as a matter of fact, as i was, working on tomorrow's santelli exchange i came up with a new litmus test, not only do i agree with jim bianco that you need 60 plus percent fed.funds although i question whether that game works in the environment we are in, but you also need all three market indexes in positive territory. when you look back last several meetings you might be surprised what you will find. it could be just about that easy. to me the big story today, and i agree with jim cramer, united healthcare. this is huge. whenever i get e-mails from anybody about the headwinds of the economy there's always three
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things there, one of those three is always obamacare. always. and as the president gets into his final run and the notion of the democrats and the veto proof and harry reed's once strong hold or not letting anything get in to make even subtle changes all those were done by the president. this is huge. if it's a giant head wind maybe the other side of the mountain will be something better, you know, there's so many pinocchios associated with the affordable care act that i think only jipetto could have created more. now we are seal seeing the realities of that. keep your doctor, all those were not accurate. yes, united healthcare was late to the game, they were smart on many levels so many are watching all the other moves as we've been pointing out all day on cnbc. >> if united health the big elephant in the room is having issues with all the exchanges, you almost know with certainty that the smaller players are also going to have issue, come
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out with issues if they haven't already. >> you would think so. thank you all. some breaking news news here. see you great later. let's get to dom chu. >> we're watching shares of sketchers, up by 3, 4% so far. the company is announcing it's won a favorable ruling from the international trade commission in a lawsuit that was filed by a nike subsidiary, converse, they sued sketch sketchers saying that the tingel toes and bop shoes were a knock off of converses chuck taylors. sketchers says the judge has ruled that its product lines do not infringe on converse. shares of sketch up up about 57% this year. as always the context is they are still down a lot, almost 50% from their highs back in august. back over to you. >> thank you, dom. keeping an eye on this market, 50 minutes to go, we've been fluctuating between gains and losses all day, currently the dow is down by 8 points, healthcare is the worst sector
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again. to reiterate some of these declines in the range of 5 to 7% in aetna's case after united health its results in morning and said it could pull out of some of those obamacare exchang exchanges. best performing sector today, utilities. >> the rate sensitive kind of -- >> there you go. >> defensive play. doctoring. coming up a leading healthcare analyst will give us her name on united healthcare's considering an exit from obamacare, find out how she thinks other insurers could follow suit. >> the suspected ring leader of the isis attacks in paris has been killed, we will go live to france and belgium on the latest investigations in friday's horrific terror attack. stay tuned. announcer: if you'd give thanks for a better night's sleep...
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the suspected ring leader of the paris isis attacks has been killed as the investigation of those attacks does continue. michelle caruso-cabrera is in paris. >> also we have cnbc's europe's julia chatterley who is in belgium reporting on other angles of this story. mirm, what's the latest tonight out of paris? >> so in addition to the
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organizer of friday a's tax being killed we're also learning more about the female suicide bomber who was in that raid. she's 27 yeerld old and belgium media says she posted this photo of herself on social media. the daily mail has posted photos of her naked in a bathtub and interviewed her brother who said she wasn't a pias or religious person. we're also learning details with about the s.w.a.t. team's raid into the bataclan theater, that was the horrific place where 89 people were shot to death. lester holt sat down today with the leader of that s.w.a.t. team, that interview will air on nightly news tonight. here is a small remember snippet on it when they say they came face to face with the terrorists. >>es in is we opened the door the terrorist -- one of the terrorists shot like between 25 to 30 rounds of ak-47 bullets.
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7.62 caliber. >> these are these holes. >> exactly. immediately we have a guy in the middle of the group get hid in the hand, he fell down because of the pain. >> one of your officers was hit? >> yeah. yeah. in the middle of the group. so we cannot take care of him, we still go. >> you can't afford to pause. >> no, we can't afford. >> inn cled blee, incredibly compelling and devastating. i highly recommend t we've seen other pieces of t it's pretty tough stuff. you can imagine what those officers went through that night. >> the terror alert, are they still planning to raise it? do you have any sense how long they want to keep that there at the current high levels in france? >> well, we do know the state of emergency the lower house of parliament today voted to extend it another three months and the senate is likely to do exactly the same. they plan to be on high alert i think for a long time. hollande, the president of
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france says he has requested an increase in the intensification, the air strikes in syria. this country is very much at least the political class right now very much on a war footing. they use the phrase all the time we are at war and you hear this drum beat. we've even spoken with mps who want to put soldiers on the ground in so err i can't. i think the answer to your question is a long time, bill. >> yeah. it's pretty clear. michelle, thank you as always. as we mentioned julia chatterley is live in molenbeek, belgium. geechk, julia. what can you tell us? >> dpeeng. i'm tell you the big question here in brussels tonight is who are the nine suspects that they are believed to be being held by police following nine separate raids across brussels and the surrounding regions tonight. the vast majority of those raids focused in on known associates
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of one of the suicide bombers associated with attacks in paris on friday, a man called vil lal hadfi. he lived here, in fact, his family still lives here, but he is not the only connection to belgium. the man that's believed to be the mastermind behind the paris attacks, in fact, also lived here in belgium, he lived in a region known as molenbeek and that's where i am tonight. you can see the town hall behind me. this region has been described to me as the jihadist capital of europe, it has a high muslim population, high unemployment and the authorities have been criticized for not doing more socially but also not k drag down on the extremist radicalization activities that are believed to take place here. the prime minister of belgium said said we are going to step up the security, the surveillance, we're also going to check the borders in particular, too, and i think the start really is what we saw in terms of these raids this
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morning, nine raids, nine suspects believed to be held in custody. the crucial request he is who are they and what, if any, is their connection no those attacks in paris. we wait and see. back to you. >> thank you so much. here at home a move to prevent isis inn i will fla duration to those shores, the house of representatives passed the american safe act which us suspected syrian refugees to the u.s. until screening procedures are tightened. >> congressman ryan zincy held author the legislation. he has served more than two decades as a navy seal. he is the first navy seal ever to be elected to the house, he now represents the state of montana. congressman, nice to see you, thank you for joining us today, sir. >> great to be with you. >> as you well now the president has said he would veto this bill should it come to it. do you think you have enough votes to override? >> i do. if the president isn't going to act i think today congress showed that we will.
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it is about refugees that are unknown and we face a triple threat, one from our borders, the second refugees that we don't know and lastly the homegrown threat and these are all real and my job is to make sure that moms that are bringing their kids to school feel safe. >> that said, it was newt gingrich who actually put it in an interesting way, congressman, which gets to the heart of this measure and others. he said this isn't necessarily a fight where the combat a ants are emanating out of syria so much as from the internet. how do you tackle something like this beyond trying to target programs, refugee programs that we know have been used but only by perhaps one of these many assailants in the case of the paris terror attacks? >> certainly our hashtag diplomacy is not working. there is a group out there that is hacking islamic sites that are favorable to isis and i think that's what the president
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should have been doing. so i think you will look at it from an operator's point of view, we face multiple threats, i think first of all let's look at our borders, let's make sure we are bringing people in that we know who they are, let's look at the homegrown threats and certainly cyber security is look at what's out there, analyze what party is doing to what and certainly social media. >> congressman, the reason i ask, though, is not necessarily about the vulnerabilities that may exist on the internet but the fact that the internet is the tool, messaging systems, platforms, that kind of thing through which these cells are being activated. in this particular case we just heard a lot of these guys were in belgium, for example. >> right. >> look at what happened with the russian jet, those are people in the sinai. you point to case after case, what happened in beirut. if they're able to activate through the internet why is targeting syrian or iraqi ref juice which do have a screening process going to be effective? >> well, it's how we need to look for it we don't just have
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to look at the websites that are in air rick language or foreign language, with he need to look at the websites that are in english. 90% of the content of websites in english and thus far our professionals have had their hands tied because of the fear of a u.s. citizen. well, you can't really tell on a website that's in english whether a citizen is u.s. or not. i think as far as securing our liberty, when you get to a name then i think you need a court to take a look at it but if you are just looking at data, trying to find activity that is a it threat, i think this is english or foreign language we need our professionals to have the tools available to them so they can prosecute this war. >> along those lines, though, sir, pursuing kelly's line of questioning, a group of technology companies just said a moment ago that giving u.s. authorities the keys to data encryption is not the solution to security fears. there are plenty of people who feel that the apples and the
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microsofts and facebooks of the world should be, in fact, giving u.s. authorities that key to their encryption so that they can break the code of a lot of these terrorists. is there a way that congress could compel them to do that along the lines of what you're doing now on the immigration story? >> well, certainly if companies respect liberty which i think they do, but also we face a clear and present danger and this is working together to make sure you are preserving our liberties, but also protecting not only americans but everyone abroad and looking at the internet, we know they're using social media, we know they're using gaming as a mode of communication, it's within our capability to monitor that and take action but again we have to make sure that we can use sites that are english and right now we're being prohibited from doing so. i think we need to move beyond that. >> before we let you go addressing, again, both the cyber and physical
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vulnerabilities, the one reason why the syrian refugee -- why somebody would pose as that is because in europe obviously they have had to adopt -- they have chosen to adopt a more laxed policy to let them in. in this country if someone were to try to pose as a cuban refugee or my grant those numbers have been increasing because of perceived potential policy changes, does that mean that that vulnerability suggests that we should also stop accepting cubans or increase our screening process in case somebody were to sneak in there? >> we need to suspend the process until we look at the vetting and how we're vetting to assure that we are not allowing terrorists in. the argument that it's women and children, look at what's happened in france. terrorism goes beyond women and children, we've seen bombs that are tied to children, we've seen the individual in paris, the suicide bomber, a woman. so terrorism is not about being children or women, terrorism is a terrorist and that's what we
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have to look at. i think at the end of the day is we need to vet and make sure we know who is coming in here, whether what -- it doesn't really make a difference what country they're come from, i think the vetting process needs to be looked at and slowed down, we need to suss spentd it right now. >> congressman ryan zinke of montana. we appreciate your time. >> thank you. >> back to the markets, 35 minutes left in the trading session, the averages are really not the story today, a lot of individual stories not the least of which are the two hot ipos that came roaring out out of the gate today, square and match group. >> um next dominic chu will have a special report on what could be in store for the usually hot electronics category, this is after best buy's holiday warning has roild that sector. >> top healthcare analysts weighing in on united health sounding that alarm today on possible exit from obamacare because of high costs. that's still to come. stay tuned.
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welcome back. let's talk about some of the movers in today's market, jm snucker hitting a high after increased demand for follow injuries coffee and big health pet brands. snucker also raised its full year adjusted earnings estimate at the same time. wendy's is packing on gains. goldman sachs upgraded the fast food chain to buy from neutral. the analyst there says that she expects wendy's four for $4 promotion to help accelerate sales growth. >> that's where mcdonald's has
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the mcpick two coming down the pike. best buy lower an forecasting a decline in forecasts for the holiday quarter. also disappointing the consumer electronics retailer blaming weak demand for tvs, mobile devices, and cameras. >> we have dominic chu for what's in for for the usually red hot electronics category. >> best buy stock taking that hit. it is off its worst level so it has rebounded quite a bit. the chain it is america's biggest chain of electronics retailers, they report earnings that beat analyst estimates, they forecast those current sales, they are expecting to show modest decline, sales declines over the same time last year, that means holiday shopping season won't be as robust as last year. this is a concern we could see weaker sales of those smart phones, tablet computers, but best buy isn't the only one echoing some of those concerns. target there is said that it saw
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drop-offs in consumer electronics sales as well. if you are a trading trying to get ready for the holiday shopping season are there stocks that tend to out perform or under perform this time of year? among some of the stand outs you want shares of, say, apple, the holiday season is an important part of the sales picture. if you look at the ten trading days leading up to black friday apple has traded positively niebt out of ten times, average gain near 5 3rs. has been positive eight of last ten times, average gains 4%. electronic arts has traded negatively seven of the last ten occasions, the average loss there about a third of a percent. no matter what this is a big time of the year for these types of companies, these consumer electronic video game publishers what not because of the holiday season it will be a big focus as we start to get more traffic and sales numbers as we kick off
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black friday. >> dom, thanks very much. time for a consumer news update with sue herrera. sue. >> here is what's happening at this hour. french president hollande says france will intensify its military operations against the islamic state. it is sending its nuclear powered aircraft carrier to the middle east to join the fight. the charles de gaulle set chals from the harbor yesterday. second wit was stepped up around the vatican today following a warning from the state department that st. peters bass i will can a could be the target of terrorists. 700 soldiers were already being deployed in rome following the paris attacks. >> the justice department says that a gand jury has indicted two companies on involuntary n manslaughter charges stemming from the 2012 explosion and fire on an oil platform in the gulf of mexico. black elk energy offshore productions and grand isle shipyards. baggage handlers and other service workers are at strike at
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new york's three marjer airports, protesting what they call unfair working conditions and seeking $15 an hour wage. despite the strikes no flight delays were reported. that's kind of surprising given that, but that's the cnbc news update this hour. back to you guys. we will see whether or not it continues to be no flight delays. who knows. >> just in time for thanksgiving as well. >> of course. exactly. one week. >> heavily traveled times of year. thank you, sue. >> less than half an hour to go now, the dow trying to make a decided move into the green, it's up 18 points at the moment, the s&p up less than one point, the nasdaq up 7. >> up next a leading trader will tell us what he's watching as we head toward the close. >> did united health open a pan do remember ras box? we will speak about how this could play out. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses.
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take away your trash and your happy memories. always enjoy and protect our marine habitats. welcome back. some big movers in the dow today despite the overall index being roughly unchanged. intel, coke, apple all having pretty strong sessions even as pfizer is lagging. intel up more than 4% as the world's largest semi-conductor maker says next year's sales
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will increase in mid mid single digit range. they say the company's growth is not dependent on the perm computer business. >> we have 25 minutes left, we are in that critical last half hour of trade. i have keith bliss from can a tone and company with me on the floor of the new york stock exchange. we were talking earlier, we had a pretty good rally this week, we are holding those levels, you think these next few trading days are critical. >> err with at a bit of an indecisive point. we have crossed back and forth over the unchanged line eight times, just crossed back over to the negative level. we have things we are looking at, if the vix can stay below the 50 day moving average, if the broader index -- most of them got back above the 50 day moving average with the exception of the ruggel. >> who is keeping us there, which sectors? >> what we're starting to see is monroe date back into the growth sectors, healthcare and
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technologies. if you look at the heat map of the dow you can see companies like walmart are down today. so retail still a little weaker, the industrials are still a little bit weaker and the financials were weaker in that -- >> although utilities are leading the way among the sectors. >> that's true, but again you will see this backing and filling. that is all indicative of this inn dee sighs itches. the things that we need to look at are the russell and nasdaq. if we can maintain above certain key levels that we have for the in ex week or so, go back and retest the highs of early november and perhaps trade back to an all time high in december. >> we will see. thanks. see you later. >> the worst performer on the dow is united health. those shares down more than 5%, about 5.5%, the company down grading its forecast blaming the high cost of obamacare. joining us for more is mositas. the entire health insurer space
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getting vold on this news. what has changed for united health so dramatically since the last time they ee iterated that i remember guidance about a month ago? >> basically they have said that the exchange business is unprofitable for them and honestly this should be a surprise to no one pause no with u.n. has been making money off of the marketplaces through obamacare. in fact, insurers lost about $2.5 billion, with a b, in 2014 which amounts to about $163 per person. so i think what they're doing is they are -- you know, they are warning the government, look, we are going to watch in 2016 what happens, check out the risk pool, you know, stem our broker commissions and then we will make a decision about 2017 when that time comes. >> what do we make, though, these exchanges are a small part of the insurer businesses, are we making a lot out of a little in this case? >> well, it is, it is a small percentage of revenues, that's a
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good point, but it's unprofitable, a negative margin is never great and none of the insurers are making money on exchanges. i think anthem is a little bit, but aetna, united, they have all been pretty up front about their negative margins. the other interesting thing at play is that the government sort of needs these insurers, if you will. >> right. >> they also -- they have medicare advantage plants and also have managed medicaid plans for the medicaid programs. it's a partnership between plans and the government. >> the reason i ask, i mean, it's a small part of their business and you are quite write right it's not profitable but does it warrant the kind of sell off we have seen for please guys today? aetna is down 7% today? >> i think actually it's probably worse for the providers than the insurers because if you are a hospital or a nursing facility and there are these issues then i would be more concerned probably about them than the insurers, but i think it really is a wake-up call to
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hhs, to the white house to say, look, these people are more sick, they are more expensive, there are people coming on to the exchanges, maybe obtaining coverage for three, four months and then dropping out, you have people are life event changes who are coming in and those people are sicker. so i think we need the government to probably check out these people a little bit more, make sure they are paying their penalties, make sure they are who they say they are. i think it is a part hypothetical sh. i think if insurers feel like that other end of the bargain is being agreed to then things will potentially work out. >> quickly, and you are right, if you look at tenet healthcare it's down 8%, hca down nearly 7% today, they got hit last time around on their earnings result. is this a death spiral for obamacare? >> i don't know that i would call it the death spiral but i think do think there are probably pretty smart people in the government trying to figure out how to get themselves out of this -- out of this pixel -- in
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washington there are headlines that could be detrimental. drug prices, health plans trying to merge, a spotlight on the supply chain so best butters and now this so it could be dicey going forward. >> thank you for joining us. >> thanks. >> we will have much more on this next hour. a former aetna chairman and ceo ron williams will clue us. don't miss that. >> here is dow back in negative territory. >> something like nine times keith was saying. >> weighed down by united health. >> s&p broadly down 2%, nasdaq positive by 1. >> after releasing slumping sales figures we will see the impact on earnings from gap which is counting on old navy for a boost this quarter. >> but first, forget dick cheney or joe biden, sharon stone may wind up being our most memorable vice president. she is playing the vp who
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(vo) go national. go like a pro. she knocked down around schwartz nationer in total recall, seduced michael douglas and nabbed an oscar nomination for casino. >> she's sharon stone and taking her act to television where she plays the vice president of the united states who doubles as a spy master, it's the new drama on tnt called "agent x." we were just saying you look like a vice president of the states. >> right. >> you fit the role there. >> good. zoo food to see you. >> we like wearing the concept of women in the white house. >> right? >> yeah. >> welcome back to the new york stock exchange. >> it's fun to be here. >> there are a few more women
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than the last time you were here. >> the last time you were here when we did basic instinct there wasn't very many if any women down here. >> michael douglas was just here recently. >> was he? good. >> the marvel comic movie. >> it's great. >> he said to tell you hello. >> it's fun. it's fun here. it's overwhelming to be on the floor of the stock exchange. >> one thing i love reading there this new project and reflecting on the career you have had, it's had its ups and downs, something our audience is familiar with. how do you pick your projects and why this particular project and what does it mean to you? >> well, i try to pick a winner and i think that agent x really is a winner, it's exciting, it's a political action thriller and i think that at this time to have a show that's a family centric show on tnt, which is kind of a family network, to have a show that discusses the things that are in the media, in the news, i'm sure the things that are really affecting the
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stocks exchange every day, but things can be discussed in a family centric way, it's really -- it's a great show to be on and it's fun to play the vice president, particularly now during this election period when, you know, we have a really strong woman candidate, it's fun to be a woman this that position. it's a very iconic period in time, in history. >> and this is considered a new golden age for television, too. given the number of distribution channels that are out there, it behooves a channel like tnt to spent the dough to bring a sharon stone to a project like this. >> you tell them. >> and have decent writers. >> we have a great writer. blake haron who wrote born identity wrote our show. he is great, a brilliant guy and bringing really super topical things to our show. we have shows about things that are really a bit frighteningly poignant and on the mark of
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what's happening right now. >> as you mention, i mean, it's a show that tackles contemporary issues, but it was important for you that this is a family centric kind of program. why? >> well, because, you know, i have three kids, i have a nine, ten and 15-year-old, all boys, so i really enjoy being with them. when you look at television today there's so few things that you can really watch with your kids that actually have substance and meaning. >> right. >> and i love that and i love shooting at home in l.a. and being able to bring my kids on the set and they are stomping around in our sets that are the white house and the vice president's mansion or army helicopters which of course they just love, they love that. >> expectations are pretty high. >> we have to go but i'm going to ask you your favorite question, biggest money mistake sharon stone ever made? >> oh, my goodness. >> that's what everybody says. >> you know, we all -- we all
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make them. i think maybe having people manage my money that weren't the smartest people in the world. >> do you pay for attention now? >> i do. but when you are an artist you are not really educated on how to manage money so i think as we become more successful we have to learn how to also be a better businessperson. >> harry connick was just here last week and he said i've got a manager been with me 30 years and i wear a guitar, i shut down at the piano and that's all i do and the other person worries about the money. >> i think you have a good person and trusted person in order to help you learn how to do it well. >> great to see you. thanks for stopping by. >> thank you so much. a pleasure to meet you lady on the stock exchange. good for you. >> sharon stone, you can see her on agent x, it airs sunday night at 9:00 on tnt. >> and we do have about ten minutes to go here. i almost want to let you do the honors, sharon, the dow bound 2 points, s&p down about 2 as well, the vix a little more elevated on the session and we
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are keeping an eye on some of those big decliners. >> it's going to go right back up. >> we have a bull in the house. >> i love it. >> nasdaq is up 1.5. >> when we come back dan mcmahon from raymond james will tell us where he sees the market going from here. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. so wi got a job!ews? i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it.
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department of justice and fbi are holding a news conference on homeland security right now, we have loretta lynch and that's james comey, director of the fbi. let's listen in. >> third we began covering every tip and every lead immediately and we have continued that to this moment, and last we have made sure that our over 100 joint terrorism task forces are focused intensely on our investigations and in fact that they have taken them up a notch. that is very hard work but we are very fortunate to have the help of our state and local partners around the country. together we are watching people of concern using all of our lawful tools, we will keep watching them and if we see something we will work to disrupt t that's what we're doing about it. last what should you, the people of the united states, do in response to this threat? the most important thing i think is do not let fear become disabling. that is what the terrorists want. they want you to imagine them in the shadows, they want you to
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imagine them as something greater than they are. instead we hope that you will turn fear into healthy awareness of what's around you. if you see something that gives you a bad feeling, tell somebody in law enforcement. since september 11th we have really worked to get ourselves organized in such a way that if you whack up and tell any police officer in this country or any deputy sheriff in this country that you saw something, didn't seem right, you heard something that didn't seem right or read something online that seemed off, that information will get to the right people immediately. you can count on it. and we will check it out. if it's nothing, no harm done, but if it was something, great harm may be avoided. but counterterrorism is what you pay us to do. tell us what you saw and then go on living your lives, living your life while we do our work. that is channeling fear into something healthy, which is awareness of your surroundings and not something disabling. that's what we hope you will do. thank you, madam taern general.
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>> thank you, mr. director. thank you all. >> all right. attorney general lor receipt tap lynch and james comey about those national security issues. he is not aware of any credible threat here in the united states of any what we would call a paris type of attack in the united states, but they are essentially saying they are vigilant, we should remain vigilant but go on with our lives as well. >> joining us is dan mcmahon from raymond james with a look at these markets. some high profile ipos today, big winners and losers on the dow. where are you guys putting money -- >> i'm bop? >> where are you guys putting money to work. >> we are cautiously optimistic about the market. we think that it will probably raise into the year-end but taking a fairly defensive stance, the oldest mantra is don't fight the fed, the phet was pretty much telegraphed that
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we are going to raise rates in december, if they don't we will probably have to eat crow as to why not. >> does that mean you are investing in growth or going defensive here? u tielts are the biggest performer today. >> we don't follow utilities, but defensive play. healthcare used to be the biggest defensive play and it's been a disaster this year. we are seeing money flows into mlps, particularly those are good strong cash throw so we're seeing money there. we are also seeing a lot of money chase the fang trade and we are seeing money throw into financials in anticipation of a rate hike. >> everybody is assuming it's going to next next month. we will be back with a closing count down on this big day for a couple big ipos after this.
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when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about.
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that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most. very quickly as we head to the close here we are in front of the post where they traded square today, kayla tausche a lot of importance placed on this ipo. the fate of the future of technology and ipo-dom. >> all of this rests on this one deal here. >> now what? >> it worked because the company went into it with a heavy dose of u milt, pricing the shares at where they probably thought they would price a couple months ago. really, bill, investors are saying you are either the large cap leader in your sector or you're going to be threatened by
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someone else. that's how they're treating it. >> now we will see how this does after that. we are going out with minor declines so far we've got members handicapped children's fund ringing the bell and at the nasdaq the executives from inogen. i will see you tomorrow. thank you, bill. welcome to the "closing bell," everybody, i'm kelly evans. some big movers today and some big invoices as well. here is how we're finishing up the session on wall street, the dow going out with a decline of 5 points, the s&p giving up 2, the nasdaq giving up 2, we are cross the that line between positive and negative territory it felt like nearly a dozen times. united health shaving 40 points off the dow, pfizer under pressure, too. all the health insurers, a lot of the hospitals under pressure on concerns about the future of obamacare. we will get to all that in just a moment. we have our own mike santoli and sara eisen, "fast money" trader
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guy adami. welcome one in and all. guy, what jumps out about the action today? >> you mentioned the hospitals. obviously they stood out. the continued relative strength in the bond market, tlc had a nice day, 2.25 -- somewhere between 2.25 and 2.30 in tekds of yield in the ten year sort of in resistance to the upside, i think we're bumping up against this resistance and the path of least resistance continues to be lower. i think rates go down. in terms of the broader market ins the resiliency that we've seen in the s&p in the wake of what's been a pretty significant rally was impressive to me as well. >> mic, what would you add to that? >> you do the see the indexes and think it was a shrug today. you are up about 3% this week and you are about flat for november. so you are kind of holding on to october's gains. i will say, though, the treasury market as guy mentioned as well as the credit market, high
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kbreeld market didn't exactly give the green light to say risk is on, we are going to make a chase for those highs that are a couple percent up from here. i do feel as if it's kind of like a flattening out of this rally. >> that's a good point. sara, we probably don't talk enough about what brian reynolds calls the botoxing of the stock market which e. links back to corporate credit, ready availabili availabili availability. >> and everyone trying to figure out if there is an inflection point in the credit cycle, what the federal reserve is about to do which increasingly looks like increase the rates. emerging markets rallied strongly today, the dollar weekend, the 30 year bond yield went to a two-week low. these are all not what you would expect into a federal reserve interest rate hike and perhaps shows a little bit of the
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lifting of the uncertainty which is weighed on sentiment is a good thing for this market. >> related to that is the idea maybe that all these markets have kind of priced it in. we've gotten to that point where, okay, we've come to terms with it. >> as you were saying about a dollar and those kinds of things. also utilities being the best performer today on the back of those lower rates and maybe a defensive play but what do you make about the utilities play in particular. >> they have had sold off hard but we have this support of lower treasury yields and the dividend sectors are going to actually just get a relative bid on that. something like 40 or 50% of s&p 500 stocks have a dividend yield rifling or exceeding the ten year treasury yield. basically a huge class of stocks are seen as interchangeable and bond equivalent. >> guy, one of the things that i've heard in the past but not a lot lately is actually that that makes a good case for buying stocks as the fed starts to raise interest rates just because you have both that price appreciation potentially on a
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better economy and also the fact they do offer a nice yield if you buy them here before that starts to move. >> i think the keyword there, too kelly, was potentially better economy. a rate is going to go higher because the economy is getting better. copper, everybody talks when copper was ripping a few years ago everybody said that was the benchmark for the global economy, now nobody wants to talk about it because we are at four or five years low, that coupled with the ball tick index which is making historic lows. >> is it fair to to suggest that those are better barometers of the chinese economy. >> 100% and i will say this. the people that use china as the reason for our growth here are the same people you don't hear word from now with china seemingly slowing down. yes, i don't think -- i think we are struggling along here, maybe we have turned a corner but we are still bouncing around the bottom. the problem for us, i believe, is just as we're turning seemingly the rest of the world
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is going the wrong way. >> and there you get into the policy divergence question which has been such a big driver this year. the other factor which could be calming and why the markets aren't panicking more over an interest rate hike is so much fed commentary is focusing on the fact that lift off doesn't matter and it's going to be the trajectory of interest rates. the cleveland fed was on squawk box, you get this idea they are not going to be in a rush, slow and steady and as long as you get the economic data shows mixed results having ken griffin on "squawk on the street" talked about it a robust employment recovery but everything else is -- they can do whatever they want, there's that easing cushion. >> we do have big ipos coming to market today doing pretty well on day one despite a lot of concerns. square soaring in its debut, priced well below it's previously anticipated range. >> square closing today at 13.07
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which is just above the range where it had initially expected to price those shares. the company could not have predicted the type of sentiment that would come in through the road show but they did so with a happy dose of humanity, pricing those shares at $9 a share, today they opened at $11.20 and rose steadily, pretty much blah toning throughout the day. there is a few reasons why this is happening. first investors are being extremely choosey with what they're buying, they've gotten burned not only on the ipos they've bought this year, some of those companies not necessarily putting up the in ms that they had initially hoped for and as we've seen some of those valuations getting remarked. then there is the fact that square itself didn't make a profit, it's unprofitable for the last eight quarters it hasn't, we asked ceo jack dorsey whether there is a path to profitability and if so when it happens and here is what he said. >> we don't see this as a loss, we see this as an investment in
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our business and it costs money. so, you know, we have an understanding of our business, we have a very clear sense of the controls of the business, we showed a break even in q 2 this year and that really proves like we have a business that can see that, but we want to invest in growth. >> they are going to be investing with some of the proceeds that they raised today, a little bit less than proceeds than perhaps they expected because of that price range but they will have about $400 million in cash, they are going to ex accelerate their growth, plug it back into the business. one of the reasons they priced the ipo like they did is they wanted to make sure to get the right type of shareholder on the books, not the type that would dump the stock on day one. with today's performance it looks like that's what happened. >> kayla, thank you very much. 45% pop closing above $13 a share. where does that leave us? >> to kayla's point about getting this stock in the hands of people they wanted, the price
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of getting some long-term money in there was to have it at a discount. i think we shouldn't say that last night $13 a share was available to square and its investment bankers. we simply didn't know that. it's a dynamic process. if this thing priced at $10 and traded at $8.50 nobody is showing up because that's a broken deal. i do think the fact that it was priced at a discount, traded immediately higher it gives you some boldness. we say long-term holders, 47 million shares traded today. a bunch bent around a couple times. >> guy, again, here, this has a lot of people focused on what it means in terms of a barometer about private market valuations for the way in which this is delaying the ipo process. what are your thoughts as a take away now? >> mike just hit the absolute nail on the head. you didn't want it to price at 11 and have it close at 10.5. rather have it open at 9 and close where it did for the optics of the whole thing.
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what's perception a reality. i think their business is challenged, i think he finds himself in an interesting place now running both these companies, square and twitter for the next, i guess, month or so. so one of the two had better do well otherwise it's going to be a real problem here. i think given the choice between the two at today's closing prices i would take twitter over square, i think square is potential to be commoditized to where i think twitter is a unique property. >> we saw actually twitter doing well during the session yesterday, too, guys were talking about whether that was a pair trade people were making. i wanted to mention what happened with match group today, closed 23%, about 14, nearly $15 a share after pricing at $12. >> it was a positive sign for ipos. that one, too, priced at the low end, led the range last night. you have to look at the context, got solid day for tech ipos but there is a year where stellar one day pops that we have seen in new ipos like etsy are way
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below their ipo trading price, a lot of companies have pulled the plug and waited to go you be p i can will because of this environment and you have other anecdotal comments that it's trickling into the private markets like fidelity marking down their investments on snap chat. >> he said if anything it is those bigger money managers which are big asset gathering machines putting money into companies like this in the very last stages. he said that's not what venture capital does, we have already made our money. is there an he will e789 of truth to that and any individual investors who may be surprised to find out -- >> i think when you are talking about these mutual fund companies that are playing in this area it's hard for them to win outright. they're never going to own enough of it that it's going to be a huge swing factor and enrich their shareholders that tremendously but you do want them to participate in these growing parts of the economy that are not otherwise available in the public market. >> the concern is that you totally get shut out. we have a unch about of
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earnings. we will waiting for results on gap. we have ross and inn tut moving. >> what's happening right now is we're watching shares of ross stores, we are moving to the up side by 4%, 53 cents a share, 53 cents a share versus 50 kebts on the average analyst estimate, sales relatively inline, $2.78 billion, the estimate $2.77 billion. current quarter earnings per share between 60 to 63 cents a share that misses the average analyst equipment estimate of 64 cents. they also made comments in their statement saying they do see a highly promotional holiday shopping season. ross stores at least for right now, again, now moving about 5% to the upside on 56,000 shares, a little more than that in terms of volume. we're seeing that somewhat accelerate. a nice move higher for ross stores. we are comb through the other ones and bring you the details
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as we get them here. >> reiterating that value play along with tjx this week. guy adami thank you. >> there's much more coming up with fast with guy and the crew. with united warning's health about obamacare means about the sector. we have former aetna ceo ron williams to give us his take on whether it will be a black eye for obamacare overall. starboard urging marissa mayer to a band don plans for spinning off that alibaba stake. you're watching cnbc first in business worldwide.
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we have breaking news on google. let's get back to dominic chu. >> google, alphabet's google unit is looking to beef up their cloud biz and they have just now hired the vm ware co-founder and ceo diane green, she is going to lead a new team that combines all of google's cloud business including google for work and google apps. together this new business will bring together product, engineering, marketing and sales and allow that company to operate in a much more integrated coordinated fashion. a very high profile hire, diane green the co-founder and ceo of
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vm ware leaves that position clear again overall the former ceo of vm ware co-founder of the vm ware to lead up google's new -- or rather new initiative in cloud computing. again a big development here. alphabet the parent company. this affects the google cloud business unit. a big deal here on that technology front. google making more strides on the cloud side. >> jon fortt is here. love your reaction to this one. >> this is big news for a number of reasons, diane green was a co-founder of vm ware, a ceo for a period of time, vm ware is an enterprise business and i would argue google has not been punching at its weight in the enterprise and even in the cloud. they are a bit late, they've got this massive network of servers, they have a lot of fiber, all over the country, arguably they should be beating amazon at this game but they have not. also when you look at their apps, google apps, google docs,
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google for work as they call it now microsoft with office 365 has been able to basically come back and really make an argument that feature for feature they either are catching up or have caught up to features that google has had around for years but they hadn't been able to gain ground on microsoft. diane green has been into a company that works closely with small business which is a market that google wants to be. i also think it's interesting, this is not alphabet bringing on diane green in a separate business outside of google, this is a message from sun car pichai saying he is bringing her into google also said she is remaining on google's board of directors, not sure if that means google or alphabet's board of directors. bottom line she is an prarlt who knows how to get things done in enterprise in an area that google has not been as strong. >> a major yahoo investor is
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reversing course when it comes to the proposed sinoff of yahoo's alibaba stake. it's just kind of a shocking story how big their tax bill has gotten, the fact that it might not get approval and now that it's more economical for yahoo to do what? >> starboard is value saying maybe you shouldn't spin off that $20 billion stake in alibaba in yahoo japan, instead of taking that risk that the tax bill will be too high and that it won't be tax free, instead just keep the asian assets they're saying, sell off yahoo, the core business, jeffrey smith the ceo of starboard writing he thinks they would be healthy bids for yahoo considering the number of unique users, significant search revenue and income and the popularity of many of yahoo's display properties as well as the real estate that yahoo has. the changes that yahoo is going to willingly -- the chances that yahoo will willingly it sell itself seems close to zero
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considering marissa mayer was asking her deputies to stay on for three to five years. this does signal that activist investors are getting antsy about the spinoff process, even though they just you wished per for this spin off months ago. mayer will have a challenge for making the case for yahoo staying independent even if that happens after the pin off without a hitch. nothing that they seem to do with their core business right now moves the needle. some of the smaller businesses are growing but the core business is shrinking. unlike some of these other businesses like an oracle where the core business, software has huge margins they can use to fuel growth yahoo doesn't have those same assets. >> mike, this is almost i don't want to use the term inversion, it splits the strategy that yahoo has predicated on. >> the activists are so tax
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avers, yahoo's perspective is let's just do the separation, we will take our chances, our lawyers think this is going to be tax free. if you don't do the spin off the tax liability is there, it exists in the world, if the irs says you can't spin it tax free it's not like the market is going to say it goes away. >> we have breaking news on nike to get to. dominic chu, what can you tell us? >> here shares of niek reare up by about 3, 4%, 4.5% at this point now on 71,000 shares of movement. nike has announced a new $12 billion share buy back program, they have also declared a boost to their dividend payments as well, a 14% increase in their quarterly dividend as well as a two for one stock split. $12 billion share of purchase program, 14% boost to the increase to the dividend and also a new twoer for one stock split. that's moving nike shares to the upside by about 4.5%. 77,000 shares of volume. also want to bring your attention speaking of shareholder returns here,
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pepsico shares also on the move here, they have announced a boost of their quarterly dividend by 7% to 70.25 cents per share quarterly. again, pepsico, nike, both moving after hours on shareholder returns news and that's capital being returned to shareholder, neighboringy shares definitely the bigger mover up 4.25%. back over to you guys. >> in only we had sara eisen to talk to on this. >> let's start with nike. the best performer on the dow jones industrial average so far in year. nike is having a terrific year, proving that it is a growth company and growth company with $30 billion in sales. more shareholder friendly returns, more cash returns to shareholder, two for one stock split. this is a company that had been growing steadily over the last several years and super charged its growth over the last year and a half or so. part of that was they had a come back in business to china which
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is really a growth driver despite the macro economic concerns in china, they have been able to increase their margins just with new innovations that are appealing to the consumer right now, raising prices, commanding higher prices for some of their new stuff. the category in general, active wear, you see it with under armour which is growing and doing well and separating itself from some of the other retail woes that we're getting just this week in the form of earnings. nike is having a good year and this is more proof of it. the stock is up 31% to far in year. >> that has it price surprise ds at $131 a share, this will tick it in half. >> i do think all these things that you say are absolutely true, when you are a 30 times earnings stock, there is a huge financial entity you have to do these shareholder friendly things to keep that going. it wasn't that long ago people thought nike is kind of a personality cult, honestly it really wasn't that long ago.
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>> their ceo his background is in design. he's coming of age in this company, the founder is getting ready to step off as chairman of the board pass the reins over to parker. it fits into that coming of age story for nike. >> i like the athleisure movement here as well and this is what i think it was kevin flank said when he said why do people want to wear uncomfortable $200 jeans anyway, leggings are the best thing that has happened to people. when you look that whole moment when i think societily you looked at people in niece yoga pants and everybody said what's going on to people now say i have to get yoga pants. >> part of me still believes we're going to be looking back in 20 years the way we look back at the people on the set in jogging suits and nike. i don't know if that's the case but i worry about that. >> pepsi all these consumer stocks that i cover has been a stand out like nike in terms of
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food and beverages, it's been a grower, posting 7% organic growth, the stock is up 3% in the last 12 months. in terms of the results versus rival coca-cola. >> and even just shaving off the critics who have tried to break that company up. >> speaking of@leash sure, athleta is part of gap. >> shares of gap right now down by 4.3%, 135,000 shares traded so far, gap reporting earnings in line with analyst expectations, 63 be cents a share on an adjusted basis that matching the average analyst estimate per thompson reuters. sales coming in slightly below estimates, $3.86 billion, the average analyst estimate for gap was $3.92 billion. gap, though, also issued some weaker than anticipated guidance for their full year earnings per share outlook. again, those factors in concert right now we are digging through the results we will bring you more details but we will take a look as always for those sales
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numbers and those results coming from the old navy division which has been a strong part of that overall gap story versus what's happening with banana republic and the flagship gap brand as well. shares down 4% on these news. forecast blo he some analyst expectations that's why those shares are down by about 4.5% after hours. this after we knew their comp sales weren't quite there, either. >> obviously we knew most of this report and still it seems like it wasn't priced in, i think people are going to ask just what's the result of this strategic review that seems to be i don't know going. >> and what's next for this company. the ceo of europe's largest airline by traffic explains how terror fears are impacting the industry. united health warning it could drop out of obamacare, could other health insurers follow suit, former aetna ceo ron williams will join us later on the "closing bell."
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the airline sector has rebounded since last week's terror attacks. phil lebeau spoke to the ceo of air france tlm. he joins us now with the highlights. hi, phil. >> we expected paris travel to really be impacted after last friday's attacks and that certainly has happened although not to the degree that many people expected, however, today when we talked with the ceo of air france klm he said, yes, there has been a decline in traffic, especially into the home market of paris, but really it's also been about other parts
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of europe as well. having said that he indicated when we talked to him earlier today on "power lunch" that he does expect traffic and passenger levels to increase with time. >> these events will undoubtedly have an impact. it's a business early to know and to have a precise estimate of the impact on our activity. what we see up to now is that we have more cancellation of bookings than new bookings, but we still have new bookings and these reductions are true on air france but not true on klm. >> we also asked if he has noticed any increase in the number of threats. remember, last week or earlier this week there were two air france flights here in the united states headed to france that were diverted because of bomb threats, no bombs were found, the planes eventually went on to paris as scheduled. he said there has not been a spoo i can in threats but this is not happening at a good time
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for air france klm. shares only down 2% this week but they are in the midst of a restrukt string because it had to curb a lot of losses over the last couple of years. as they are doing that there are a lot of people saying this is not the time that you can afford a fall off in traffic to your home market of paris. >> phil, thank you. let's get more on nike's big stock split. on the phone joining us is korean in a friedman. what do you make of this move to split the shares and increase the dividend and do a massive $12 billion buy back? >> we view it favorably, we think this is a great use of cash, this is a nice reward for those that have stuck around throughout the current market turmoil for the shares. we are bullish on the long-term outlook for the company. >> the company was nearing your price target which was i think $132. >> i'm sorry, no, our price target is $148. >> $148.
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okay. obviously we will adjust that on the two for one split. why is return in capital to shareholders a better move than investing it back in the business at this point in. >> well, they are as well investing in their business, they have spent considerable amounts in their marketing and demand creation programs, invested significantly in digital. we think this is an additional use, this is not in exchange or instead of, this is an additive to the investments that they are already making in their business. >> why do you think that nike has been so weak in the last few weeks? it's been the strongest stock on the dow jones industrial average and people it seems like have shaken off some of the china concerns after the company came out with pretty decent earnings. why the recent weakness? is it taking profits? >> it's the sector is really under pressure right now, you know, athletic is also getting pulled down into that, but fashion footwear is very under pressure over the last four weeks with inn have ven tore
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still being in the channel and mark downs across the board. it's going to be a promotional holiday but we do expect the market for athletic foot with a err to remain stable. >> long-term as i look at this company and it seems like they do have a good paths in the next year or so to hit the numbers, what is the right price to pay for nike? as i said before, you know, around 30 times trailing earnings, how do you evaluate what the long-term business is worth? >> well, we are valuing it based on a few different valuation meth dolgts. we see 148 as a viable target. we think that the top line growth is going to be substantial over the next five years as they outlined at their recent analyst meeting, expanding the jordan brand into sportswear and women's and going after more tear towers. we see that the runway a large for the international market of nike. >> and mean while making this big move, thanks for joining us on that. >> thank you. >> nike obviously a big impact
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on these markets tomorrow. today it was united health warning it may pull out of obamacare. that caused the whole system to collapse. former aetna ceo ron williams will weigh in when we come back. , the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. prge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you?
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welcome back to the "closing bell."
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we got a couple of news items to bring you up to speed on. an earnings alert on what's happening with williams sonoma shares. currently down 2.5% on 60,000 shares of trading volume. this after the retailer posted earnings of 77 cent a share, a beat over the analyst estimate of 72 cents. $1.23 billion worth of sales in line with expectations for $1.22 billion. they did, however, give weaker guidance for the current quarter sales and earnings per share than some analysts were looking for, as a result those shares down by about 2.5%. the shares were down about 12.5% year to date entering this number. also want to bring us up to speed on an ipo postponement coming out of noble midstream partners, noble midstream is canceling or postponing rather it's ipo due to what it calls unfavorable equity market conditions. this unit was part of noble energy, it's their midstream gas
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and oil assets. they are postponing their ipo because of unfavorable conditions. we want to correct something we mentioned earlier on about pepsico. they did declare a dividend, however, not a 7% increase over the last quarter it's a 7% increase over what they paid in the same period one year ago. kelly, back over to you guys. >> all right, dom, thank you so much. united health warning today it's considering pulling out of obamacare. the insurance giant says it's scaling back marketing efforts its selling under the affordable care act citing the program is taking a poll on the bottom line. sharing down 5.5%. joining us is ron williams at post 9. welcome. thanks for being here. >> thank you. >> how do you think we should read this move? >> is it political posturing by united health? does it send a stronger message to washington about the viability of obamacare? >> i view it as a reflection of the underlying costs that the health plan is actually experiencing. i think what we're seeing is the maturing of the exchange model
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and do think awareness of how complicated it is to actually run an individual health insurance business. >> the trouble, though, is that so much depends on the early stages on this working in the sense that more plans are there, more people are involved that keeps the premiums down, once we're witnessing what we are which is premiums going up, people pulling out, doesn't that actually mean it's not so much the settling out as potentially the falling apart? >> i think what we have to recognize it in the individual insurance market maintaining affordability requires you have a mix of members in that insurance pool, you need people who need healthcare today, tomorrow and in the future. where we stand now because of some of the special enrollment periods is we have a mix and balance, we have more people who need healthcare today and fewer who are making a decision to purchase the insurance before they actually need the healthcare. >> can that dynamic change at all? the penalty is going to be going up or tweak the incentives to get more or the better kind of participation? >> my experience in running an
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individual health insurance business is individual consumers are very smart about their own self-interests. if you are uninsured and you get married and you plan to have a family you may very well buy insurance, you may have the delivery and then you will make a judgment about whether you think remaining insured is a good economic decision for you. the fact that many of the plans have fairly high deductibles cause consumers to evaluate whether it is a good choice for them. >> you have seen obamacare face so many hurd als, legal challenges with regional court, main court, house of representatives, could what happened today be the biggest threat? it has to be hurting the other guys, too. >> i think we have to keep it all in perspective. the reality is it is better for people to have insurance than not have insurance. the debate is how do we do it and structure it in a way that we maintain affordability. for the people that participated in medicaid expansion, they have no out-of-pocket, no expense,
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it's been a big win but a medicaid expansion. for individuals who purchased and families who purchased through the exchanges we need to find better ways to make certain that it's an affordable product. i don't think it's the end of the exchanges, i don't think it's the biggest thing we will see. the health plans will look at their costs and they will price their product to reflect the cost. >> that is a blow. 500 million for the biggest health insurer on a loss just from these exchanges next year, that's not going to be good for the healthcare law which needs these companies. >> i would agree. each plan will look at their costs they will take whatever write-off is necessary and they will price those plans. the question is what kind of regulatory push back will they get and will they be asked to go forward with premiums that are not actuarially supportable. if that happens the plans will not support would be my judgment. >> on that note actually this instance with united health is not the only case the company going against the government in this environment. is there something more to it? many sectors we could point to. >> the other one that's
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obviously in the headlines is pfizer looking to essentially lock horns with the government on the tax rules, potentially looking to merge with al letter began, a lot of the pending mergers are trading at levels that say there is a lot of risk if the deals don't get done because of regulatory uncertainty about antitrust. it's a matter where we are in the cycle. a lot of these companies are pretty far in the cycle, looking for how to preserve margins and places where they feel restrained by government action. it's interesting. also we are far enough away from the crisis where it seems like there is more of a boldness on the part of big company executives to say we want to get a fairer deal from the government. >> not just be told what to do. what would you say to that? >> companies want to pursue the best interest for all their stakeholders, employees, customers, et cetera. sometimes the political dynamic may be different than that and a companies are mindful of that but they really are in the business of looking at how they preserve value for all of the stakeholders, their shareholders, employees and customers. sometimes they have a different point of view than the
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government has. >> a final two word on united health, it's been said many of these guys, it's 1.5% of their revenues, but is there something to be paid for them and others holding hands with the government or nodding and saying we're willing to take and do this experiment with you for many years if that means longer term the whole thing succeeds. are we at a moment where if they had that attitude in the past that is no longer the prevailing attitude? >> i think companies are more than glad to sit down with the government and try to structure a viable program that will work and they will get more people insured. every executive i know wants to make certain that families have reliable affordable access to healthcare but you cannot design the laws of physics. >> right. >> you cannot create mem nifls that incent people to only buy insurance when they need t you need to have a risk pool that reflects the normal distribution of users. today, tomorrow and in the future. >> n ro, thanks for joining us. unique perspective on this. former aetna chairman and ceo ron williams at post 9. coming up actor dennis kwad
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will join us to talk about the fast changing entertainment world, we may also find out what his biggest money mistake has been. it's all coming up.
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welcome back to "closing bell." federal reserve vice-chairman stanley fisher will become the third and highest ranking official to signal a coming rate hike today fisher says in a speech he is going to deliver this after noon in san francisco, quote, in the relatively near future probably some major central banks will
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begin gradually moving away from near zero interest rates. i would point to the plural there on central banks of not only the fed but some other banks that he is suggesting out there. he goes on to say, quote, we have done everything we can to avoid surprising the markets and governments when we move. he says the question is, and he is speaking to a conference on asia, the question of whether asia is prepared for the move off of zero by other central banks. he points out that emerging markets central bankers have been telling the fed, quote, to just do it. he says asian weakness could mean a prolonged decline in the growth rates for commodity demand and the commodity prices could remain low for quite some time because of this. he singles oat copper and steel saying the impact of china weakness on oil demand is less uncerta uncertain. atlanta fed president dennis lockhart says i'm comfortable with moving off zero soon and the cleveland fed president earlier this morning on squawk
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box said the fed has met its employment goals and she is confident inflation is moving up to 2%. so they are starting to come out and pretty much say, well, not a done deal, still dependent on the data, it's coming your way, kelly, to a "closing bell" near you. >> i was just going to say real quick, steve, didn't fisher also tell us they were going to go in september? >> he signaled it could happen very soon which was august and was suggestive of september, but it's beyond stan at this point, it seems like it's more than just him. >> thank you very much, steve liesman. up next we will take you to the trading floor in chicago with a rare interview with hedge fund manager ken griffith. 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.
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it's been a rough year for the hedge fund industry. kate kelly is in chicago where she spoke to citadel founder ken griffin in a rare interview. >> thanks so much. i did have a good talk with griffin earlier today. he talked about how they are outperforming in this difficult market where the average hedge fund is at zero. s&p only up a percentage point in change and citadel up 12% in their flagship funds.
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he said volatility has worked to their advantage, alongside the fundamental research they do on the equity side which helped to drive returns. i asked about rumors they are considering an ipo. these have been around for years. >> this has been rumored for almost a decade. there will come a time and place where we will consider going public. that time is not now. >> what about the next couple of years? >> anything can happen. i wouldn't take it off the double, but not front of mind by any stretch of the imagination. >> shifting to the macro picture, i asked what he thought about the idea of a fed rate hike in december. the market's anticipating it. he said the fed can do what it wants from a data perspective. it's defense toibl make that hike. he raised a caution about what's happening in the less-skilled labor environment. >> for college educated workers, we're in a full robust employment economy.
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the fed has to balance that with the reality for those who don't have a college degree, the labor market is still difficult. we are to the seeing meaningful wage growth in the less skilled part of our work force. low inflation gives the fed the degree of freedom to make a decision however they choose. i think they're going to move, but they don't have to. >> finally i asked about some of the markets and investing he does outside of pure stocks and bond. he's active in art and real estate. when asked, would you rather invest in precious medal like gold or have beach front property in miami? he said life is short, definitely miami. back to you. >> stay right there mike, what did you think about the interview? >> interesting. i think what he maybe didn't say is citadel is probably taking advantage of the fact the wall street banks are curtailed what they can do. i don't know if that plays into the idea down the road it would
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want permanent capital in the form of going public or plays into the institution that griffin thinks citadel should be. >> if you look at the body language, it's something griffin has considered and probably still is considering. i got the sense it's not a this year certainly or maybe a 2016 plan. who knows after that? the currency to make acquisitions is top of mind when anybody goes public i think the comps in the investment management space, if you look at fortress and how they've done could be discouraging. >> thank you so much. catch much more at kate kelly in chicago. from doc holiday to gordon cooper, dennis quaid knows something about new frontiers. a new series you can't find on tv or netflix. he'll join us here after the break. ♪
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that's huge for my bottom line. what's in your wallet? when it comes to video streaming there is netflix, amazon prime, hulu and crackle. sony signed dennis quaid to compete if the streaming wars with "the art of more." joining us at the new york stock exchange is mr. quaid himself.
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welcome. >> thank you. good to be here. >> "the art of more" about a mogul buying art? >> it's about the art auction houses and that business here in new york city. really what's all behind that. >> we had big headlines on it. some chinese guy paid $170 million for that modigliani. some said your inspiration for your character was donald trump. >> a little bit. >> you know him? >> he invited me to an island in the caribbean, which i assumed he owned, by the way. he always has a good time. the character i play is a billionaire who is a real estate mogul who has political aspirations here in new york city. the comparison is there, but he's definitely not donald trump, but he could be his cousin. >> talk about the platform. crackle. this new world where you have
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all these different options, maybe blurring the line between theatrical releases and film. as an actor, is it more the better? >> it's fantastic. it's like a renaissance going on. what is going on in television reminds me of what was going on in the movies in the 1970s. you felt like the inmates had taken over the asylum and there was in original new stuff people wanted to see. crackle is a little different from say netflix or hbo or showtime in that it is free. you don't have to pay for this service. >> makes money with apps. >> makes money with ads. there are six, seven minutes of advertising within an hour's program. a lot less than you see on network television. >> you are the first hour-long program. you don't have to necessarily watch it as it unfolds, but maybe catch any particular episode and it's a self-contained story. >> yes. a little way that it has the story about an item being auctioned that particular week.
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and the story behind it. with all that the series itself, we filmed 10 and you can binge watch all ton. >> this is a dramatic dennis quaid or comedic? >> this is dennis quaid having a great time. it's great to play a billionaire. >> the hoax flying off the handle for "funny or die" not too long ago. >> i had a great time with that. i did that as a spoof. it worked better than i thought. >> good time. >> is playing a billionaire inspired by donald trump, does it defy satire? the real guy is dramatic himself. >> all ten episodes were written and we were five episodes shooting and he announced for president. it was like i was hearing my dialogue coming out of his mouth. >> art imitating life.
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thank you for joining us. dennis quaid. all episodes of "the art of more" are available on crackle. that does it for us on "closing bell." crazy hour. "fast money" begins to digest all of it. >> "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square. square shares popping in the first day of trade. another stock is emerging and the real winner on the back of square's debut. >> plus yahoo under fire. one activist investor said the company needs to drop its alibaba spin-off plan. aalso could hasten mar is mayer's exit. >> some traders are betting a few of the biggest deals this year are now toast. we'll tell you why. first


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