tv Closing Bell CNBC April 20, 2016 3:00pm-5:01pm EDT
>> harriet tubman on the front. we haven't seen the mock-up of that. >> i don't know why they can't have multiple people on the bill. >> i would put you on a one million dollar bill. >> we'll see you. "closing bell" starts right now. ♪ alexander hamilton waiting in the wings waiting in the wings ♪ welcome to "closing bell" everybody. i'm kelly evans. we've got a big show here at the new york stock exchange. >> and i'm mike santoli. >> yes, alexander hamilton will remain on the ten dollar bill. and harriet tubman will replace andrew jackson on the 20. warning signs, high yielding coca-cola getting hit on the back of others today. and the economy emerging as
one of the key issues this election season. we've got a debate on whether strong jobs data has been you 00 hiding economic weaknesses. after the bell, a read with american express, united continental, qualcomm and more. >> just to name a few. we begin with oil hitting a 26-year high as the president meets in saudi arabia. >> just under $43 a barrel today. significant. it's not as low as we were earlier in the year. $26. it's still not at the $60, $70, $80 that people are talking about. oil prices are still low. they're going to stay lower for a while. and that is causing problems for saudi arabia. and the problems, the kingdom had to slash its budget. we know that. it's also coping with a shrinking gdp. it quietly sold some bonds for
cash this year. and downgrading the sovereign and downgrading seven of its banks. while there's also been a struggle to keep cash reserves at a certain level so the saudi arabians can keep their currency to a dollar. the ipo looks like it's going to have a speedier time line. people are talking about early 2017 for the ipo. and the market is taking that as a signal that the saudi arabians need cash because of low oil prices. the stake is a game changing move. the saudis are a nation that have proudly kept control of their oil. and also they're not particularly transparent, guys. while a sale wouldn't include saudi's oil reserves it still makes a statement to investors that cash is king in this environment. all of this coming after the doha meeting where no production needs were achieveded. initially, short term, we're probably going to bounce around this $40 range. the bottom line, even if the
saudis have an ace up their sleeve and they can hold out and endure as they have told the market, or it's hurting them and that is why they're coming to the market. these are things to consider as the president is coming to the region. >> thank you, jackie. steven short. you heard about that the saudis not being one of power and leverage. how should we read with the president over there, all of these machinations and its impact on price? >> well, certainly, we have to take into consideration it's not price alone driving the saudis' decision to walk away from doha. and we have to keep in mind this is as much do with geo politics and theology as with price. we're looking at the greatest chasm between the sunni side of
opec and the shia side of opec. with regard to rumors that iraq is hosting a meeting next month there is no way the saudis are going to throw the oil bulls a live preserver. there's no way the saudis cannot afford to underwrite in the global market. this is the hegemony of fighting for market share going to asia. this is a war on many different fronts, hence, why we cannot expect saudi to increase production anytime soon. >> it might not increase production, steven. but what you're saying basically they're willing to give up price, to freeze out potential and other members to take the market share. doesn't that go to the lower oil price going forward or is there impact not as large?
>> i'm certain we've not seen the bottom of oil yet. we're in the midst of a rally. the rally is being fueled by a short yield in this market. for every one bearish specula speculators have purchased nine. as you look forward, iran, iraq, everyone is going to continue to produce or go to the main glut on the global market. now, here in the united states, we are on track, by the end of this year, production here in the u.s. will be below 8.4 million barrels a day. that's 1.2 lower than where we were a year ago. keep in mind, we're still looking at a global market. u.s. imports are up 30%. who has filled that chasm? our friends to the north. this is good news for the canadians. we're not going to be dry of oil anywhere in the future. certainly not this year and 2017.
yes, i do like lower oil prices for a longer amount of time. >> steven, thank you for joining us. oil price is 26-season high. bill cohen will talk to us about u.s u.s./saudi relations. coca-cola shares falling for a straight quarter. it's viewed as a stable dividend because of the 3% plus yield. >> you know, yes, there are some stirrings that maybe we're seeing a little bit of a turn in this very hot dividend trade. if you look at the etf, it's been one of the best performing strategies really of any out there. it's understandable, buy yield, sell low, this is basically a world that is scarce of yield. you look at reliable. luke at the big blue chip stocks like coca-cola or other staple stocks and really anything
perceived as a stable business. and people flock into it. it say little bit of a reminder that you cannot guarantee or insulate yourself from volatility just by owning a high-dividend stock. cj technology, the disk drive memory company had a 20% yield. now the yield so far 9%. a little more tame and relevant example. general mills is down 5%. a 3% yield. a downgrade of hershey's. another stock around a 3% yield. and you're basically, if you care about the trading price you're giving up a year's worth of yield with one day's move. so, that's really all you have to keep in mind. if you're happy to collect a dividend, that's fine. be aware of expensive blue rich chips. kellogg's, mcdonald's, they're trading at 25% earnings.
it's a little rich. be aware that you're going have bumps along the way. and old tech is an interesting example. it's not perceived the same way in terms of safety. intel, ibm and cisco have all yielded. >> that's interesting, people say, i thought i was getting a 3% yield. we have todd morgan from bel aire investment advisers. rick santelli joins us out of chicago over at the cme. welcome, everybody. todd, first to you, for a lot of people counting on this safe part of the market dividend players. what are you recommending here. >> well, i think the dividends have been terrific, giving people a handsome return so far this year. there's rotation now going into financials and going into energy because of the surprise move in energy.
i've got an old saying that the market will do whatever it can do prove people wrong. in january and february the markets went straight down. subsequently, the markets are going straight up in the face of this. i think part of the reason is there's so much cash on the sidelines. many of my contemporaries, money managers have sent an enormous amount of cashing and they're waiting for the market to correct. obviously, every buy becomes more and more difficult to achieve that. one thing that worries me if i may add this, there's a possibility always in june that the feds do tighten. if they do, i think the market will give you some sort of sharp correction over that period of time. and the other thing which bothers me which we're not talking about much is this election. and i think the fear and uncertainty of what happens next, after we nominate the two people to run for president, when those debates get started, i think that there will be some
unpresidential comments and will bring uncertainty and fear to a number of people. and people will step back and wonder what's going to happen to this country. >> unpresidential comments. i think we might be used to those. in the more near term, you have this market grinding its way higher again today really. you had the vix down under 13. threatening 12 which is really as quiet as it had gotten last summer. where are we here in this move? >> really incredible. we've been trading very technically, not fundamentally at all. direction has been chosen by that handcuffed central bank by those high cash levels. we've seen i think $15 billion come out of the hedge fund market in the first quarter alone. and by high short interests. the high of the s&p is what, 2130? i think there's a bunch of bus sta stops to 2130. i see no reason we don't see
2150. >> rick santelli, we have meetings coming up next week. the bank of japan. the federal reserve. we talked about eric rosengrin saying markets are expecting us to do more. >> you no what, i do think the meetings coming up is like turning the flame up on your water when you're trying to boil more water. it's definitely going to turn up the ken nettic energy. this is my hypotheses. the market is outrunning the fundamentals. let's look at what we have left. the grinding in stocks is super bowlish. i think that we are really in a perfect spot for stocks. and i don't necessarily look at these charts and think that i can make a good case fundamentally, but i can make a good case technically, as steve pointed out. listen, we're only up six basis points. we're at 186.
haven't closed with a 180 handled. 2, 5, 10s, dollar index is weak. multinationals love that. it doesn't end there. look at a corn chart. look at a cob chart. everything is starts to move. if it wasn't all the history, important to me regarding central banks, i'd look at these and say buckle up we can be at the s&p by tomorrow. heck, we could be there at the close. we're that close. some of the investors are underestimating how fast this could happen. >> you know, rick, i wonder if that means, if you say you weren't so wondering of what the central banks are up to that we are rallying in that mode that we think the feds got to move quicker? >> boy, i'll tell you, now, mike, that is such an important concept because the self-fulfilling nature of the fed being nervous about the markets. the markets writing themselves is that going to bring the fed
back. i don't know, i think we'll play that game a lot. i think the fed is f.a. i think they normalize. you look to at 13 basis points, the fact that our yields today alone seven basis points. the u.s. markets leading the charge. i'm telling you, this looks serious on the charts. it's not one market, it's all markets. hold on, stocks are going to explode here. >> quick last word. >> speaking of that picture, you saw it in the last week. economy is 3 and 14 on those economic data points. as for eric, you know he was trying to talk up the dollar. >> well the dollar index is moving high. yesterday was a different story. below 94. >> we try to keep it around 95. >> thanks for joining us, todd, sarge, rick, watching the
markets with 45 minutes to go across some levels. not even just in, some of the names you referenced earlier. >> market's gotten no cheaper with this correction in the last six months or so. american express we'll hear from, as well as qualcomm and united continental. up next, dish network sounding off with nickelodeon and their carriage deal expires tonight. you're watching cnbc. first in business worldwide. i could get used to this. now you can, with the luxuriously transformed 2016 lexus es and es hybrid. ♪
welcome back. another day and another decent rally here on wall street. the dow bringing its closing point to 1823. s&p up 26 points. and keeping an eye on the nasdaq for you as well here. it's actually up about 20 points. 0.4. the dow is the outperformer. here's the key map. dow 30 stocks. united health up better than 3%
there. of course, we heard from the company on its earnings. investors promising to laud its changes by 2017. american express, goldman sachs also. meantime, dish network subscribers may use viacom cable like mtv and nickelodeon tonight. we have the latest on the conference call. julia, what have we learned? >> well, there's last-minute negotiations under way to make sure that dish's 14 million customers don't see viacom's channels go black at midnight. viacom shares turned around and gained nearly 5% at their peak. they're now up about 2%. the ceo saying he does see a path towards a deal, raising some hopes that they'd avoid a blackout. urgen made a point of stressing
they not overpay for condent. >> in general, black hawk is not alone in this. and general content is more widely available. and therefore, the value to us and to our customers is generally down. >> viacom responding with the statement "over the past 24 hours hundreds of thousands of concerned subscribers have reached out to impour dish to negotiate terms. and we hope we can reach a deal. we'll keep you posted ahead of the deadline at midnight. guys. >> julia, viacom stock up about 2% recently. it seems as if the market is trying to sniff out the idea that maybe it won't be so dire for viacom which people have feared a while back. >> just yesterday, viacom's shares were down 8%. things turned around during the
comments from charlie ergen during a conference call. he said they hope they reach a deal and hope not to have the channels go dark. i think that speaks to a greater issue. what's going on right now in the media business. both sides are feeling pressure from cord-cutting. and distributors. content is so widely available that distributors just don't want to overpay. >> julia, we know smaller networks have dropped viacom. it's interesting is it worth for viacom to stay available everywhere or hold the line going forward? >> some of the smaller carriers did drop viacom which is worth noting. but dish, 14 million subscribers, this is not a small player. there is this issue of whether if viacom accepts lower prices they might have to lower their fees from other carriers which
would be terrible from viacom. viacom has to be careful even if they don't raise prices they don't accept lower prices which of course is what dish is pushing for alluding to in those comments. >> right. >> it's fascinating a lot of people feel viacom one of the big guys are more vulnerable because of ratings. >> just worth pointing out those ratings have put viacom in perhaps the worst position of all the cable chances. >> julia, thank yous. we have about 40 minutes to go before the closing bell. the quiet rally continues to grind on. >> never short a dull market. >> that's what they say. get ready, we have a boat load of earnings after the bell. we'll go to what analysts are expecting. up next, donald trump and hillary clinton close to home state victories in yesterday's new york primaries. now what? we'll look at the road ahead --
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off t just about 200 points. the nasdaq tagging along there, too. 40 points or so below that 5,000 market. also looking at intuitive surgical all-time high. a better than expected earnings. it's been quite a ride for this stock. it first approached the $600 a share level four years ago. it was down to the 400s late last year and it's been coming back. also increasing its outlook for procedure growth this year. let's check out other movers. discover financial, the credit card company shares better than 8% today. the shares of hershey's are heading the other way. bank of america, merrill lynch downgrading the stock from buy, the firm citing valuations and improvements in hershey's cost structure in china, those shares down 2.5%.
over to politics, republican candidate donald trump and hillary clinton sweeping the state. >> twin blowouts. a little bigger on the republican side, trump, 61, john kasich, 25%. and ted cruz just 15% for republicans voting yesterday. on the democratic side, hillary clinton 58% with bernie sanders 48%. this means that donald trump will neat 57% of remaining delegatings to get to that number. ted cruz would need 98% of remaining delegates to get there. that is needless to say, a tall order. hillary clinton needs 29% of remaining delegates. bernie sanders needs 71% of those still outstanding. a tall order for bernie sanders
but not nearly as tall as the one ted cruz facing. cruz already talking about the possibility of a contested convention for the republicans and we'll see how that plays out and what decisions lower-tiered candidates make. >> amon, real quick, what's the next state here? >> a group of states on tuesday, the big one is pennsylvania. also, maryland, connecticut and one or two others voting on tuesday. that's a big piece of the pie still out there. >> that campaigning already under way. amon jabbers, thank you. let's go to sue herera. >> here's what's happening this hour. the death toll from ecuador's earthquake continues to rise. 553 people were killed. another 4,000 were injured. and about 100 remain missing. soldiers and volunteers have been distributing food and water to survivors. a district court judge authorizing criminal charges against three men in the flint
water crisis. flint utilities administrator michael glasgow was charged with tampering with evidence and others charged with misconduct and conspiracy to tamper with evidence. a new warning for parents to anchor free-standing chests and dressers after a third child was crushed to death by a toppling ikea unit. ikea has sent out 300,000 anchoring kits to consumers but now plans to expand it. prince william rejecting comments that he doesn't work hard enough saying he's balancing duties as a father, and airline pilot. he said when the queen is to hand over tanks, he'll be the first to accept them. >> i mean what do they want from him, i feel like having his hair
in place or a nice suit day after day. >> they're under a microscope. of course, there's all the travel. they did just did the first royal tour of india. they travel all over the world as ambassadors to the queen and that's not easy either. >> it must show the ambivalence of the country about having a royal family. you actually want to have royalty but then to say you don't work hard enough. >> yeah, right, but even want it. >> that is the question. although his popularity, that part of the royal family is the most popular it's been in years. >> that's true. >> so it's a very divided -- it's kind of like the presidential race a little bit. >> i just know i would not want to be kate middleton. >> no she's beautiful. but that's a really high bar. >> stressful. >> anyways, sue, thanks a lot. our sue herera. 30 minutes to go here. markets continue to drift higher. as you mentioned, mike, that vix
less than a half hour to go. another quiet rally. allen valdez of silver bear capital. allen, what's behind it in investor activity? >> i think what's running the market is oil. oil's got that nice pop. it gets the market up. you're right, it's been broad basis, everything from home demow, mcdonald's, g.e. you're right, the volume normally we're doing 8.8 billion a month. we're trending 6.6 billion for the year. >> it's been quiet. the actual volatility of the
market has been very calm. then you have the vix indicated that people don't expect volume to pick up anytime soon. is that a warning sign or does that mean we're go to be quiet? >> i think we'll be quiet. the market keeps trailing up 2575 in the s&p. the earnings with negative talk have been pretty good so far. they been been that bad. >> 19,275. that's a new high. do you actually think you'll have more public investors kind of celebrate that and get involved? >> i think they're going to get involved as long as oil keeps coming up. they're going to get involved more confident with the market. they're missing a lot of upside here. >> alan valdez, appreciate it. job numbers have been strong for a while. could those be masking a weaker economy. larry kudlow.
guys, welcome to you. larry, in a way we've been having a debate. do you think the chasm between the numbers and the weakness in the economy is growing and becoming more troublesome? >> kelly, i don't think so. i mean, first quarter we know is statisticall statistically weak. we had a bad number back in 2011. another one in 2014 where they were both negative. and yet the jobs numbers were growing throughout that whole period. and they pointed to continued growth in the economy. i still think initial claims is one of the best leading indicators. it's been below 300,000 for 59 straight weeks. that's amazing. we have a strong job market. there's no sign that it's going to quick. >> larry, what's not to like about that picture? >> well, look, brian say great friend and he and i are usually
together on optimism. almost all of the indicators are declining. retail sales, manufacturing, production, business investment, all of that looks lousy. i think actually there's a 30% chance of recession. it may be rising. real gdp is going in the wrong direction. it was % in q-3, it was 1.4% in q-4. according to the atlanta fed it may be zero in the first quarter of the year. what troubles me, profits and profit margins are declining. it's now been about four straight quarters. i think there's more in store. we can go into details later. finally, in the financial markets, real interest rates are at rock bottom. the real five-year treasury is minus 33 basis point. look you got a picture of a very
stagnant economy. some would call it a growth segment. we'd be luck to stay out of recession, that's the way i see it. >> you know, larry, all i can tell you, we've gone through these, the last 6 1/2 years i don't know how many times this has happened three or four different times where the data turned soft and it was just a head fake. it came back. i think this past year, you can really point to something, though, that's caused some of these softer numbers. and that is we hit the wall with drilling activity. that means, it affected pipes and pumps and railcars and new railway lines. it stretched all across the economy. and that affected us. but housing is still strong. auto set a record last year. yeah, sure, they were soft in the last month. but they've been very strong. consumer incomes are rising. still over 4.5% when you add them all together.
that's a lot of spending power. every time we had a weak quarter in the first quarter, we bounced back later. i still expect this to happen. oil prices are back up. that means drilling is going to pick up real soon. >> i doubt if drilling is going to pick up real soon. putting that judgment aside. i think incomes are slowly rising. profits, nonconsistent. business sales are falling. that's not good. you're right, housing is positive but it's not positive by very much. i think the best optimistic case is the jobs numbers but i want to go back to -- look, profits are the mother's milk of stocks. they're also the life blood of the economy. >> yeah. >> and what we're seeing now, a couple years' profits flattened out now they're sloping down. as i say, you're going to have four straight quarters. with productivity flat and wages rising even slowly. business sales flat. and i don't see where the
profits or profit margins come from. and that's probably the most troubling event that i see. i'm not calling for a recession. but i'm saying the risk threat here, probably 30%, maybe a little more. and again -- if you're growing at less than 2%, brian. any little thing could topple the economy. that's why i don't feel very confident about it. >> yeah, just two quick real points. one is fourth quarter last year, profits were down, yes, about 4%. but if you take energy out, they actually work up 2%. so four quarters of declining profit growth, it's all a function of energy. the second thing is, i always look, and i know you do, too, larry. always look for some major event to affect the economy. the threats of prosperity are bad monetary policy, bad tax policy, bad trade protectionism, and government spending and regulation. so that's usually -- it's
usually the fed that causes recession. and the fed's just not tight right now. we have $2 trillion of excess reserves. m2 is accelerating and it looks to me that the economy is going faster. >> quick, larry. >> i sure don't see faster growth. what i'll tell you the solution to our problems i'll say this for the millionth time, slash the corporate tax rate. slash it. you'll get more investment, more capital formation and better productivity. unfortunate list, that is a ways off and that's why i'm worried. >> thank you both. hope we can somehow overcome these concerns. meantime, larry kudlow, brian wesbury, on the health. economy. mike, we're well off the highs. the dow was off 100 points top. hour. and s&p only 17. nasdaq up 13.
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welcome back. markets settling back a little bit from its highs. s&p 500 up 3 points. nasdaq up 12. we hit the highs for the day around 3:00 p.m. the last hour has been a little soft, still cooking the new highs for this rally. take a look at solarcity. that stock has been soaring. the board of supervisors vires solar paneling. good luck with that, it's hoping solarcity up 8% today. and it's an earnings parade today. let's get a look at three bigger name. kayla tausche and bill cohen. >> kala, what are we expecting to see? >> 1.05 is the earnings.
and analysts expect a slight increase of about 1% from last year. here a few key items that we're watching for. first, the company has said there would be $125 million one-time benefit because they sold a jetblue portfolio to mastercard. the company also said expect the dollar to hurt even though it stabilized. and also the fact that gas prices have remained low consumers are spending less money on their cards. that means take home is much lower. the company outlined 540 to 570 a share. we'll be waiting to see whether the company reaffirms that. >> we'll see you in a couple minutes. let's see what to expect from the friendly skies with phil lebeau. hi, phil. >> hi, kelly, when the earnings come out within the next half hour, $1.18 a share. that's the estimate of what people are expecting down from a
year ago. revenue just over $8 billion. last year they brought in $8.8 billion. the key to focus on what do they say about passenger availability for the street mile. that's the metric they use in the industry. like any under pressure for united as well. we don't care about the first quarter as much as what they say the outlook going forward. that call is after the bell. we get the numbers within the next half hour. we'll be on the call and we'll have them for you. >> john ford is tracking. qualcomm. >> let me cut straight to the chase, the main number is msm shipped shipments both in this report. that's going to be the clearest gauge of overall smart fund demand in the q2 report which some analysts hope will be the bottom as far as volume. and more importantly, q3, given intel's report particularly
important for here. for q 2, looking closer to 85 million, down 20% from last year. it's go to be key to understanding the market especially the snapdragon 20. high expectations. i'm not saying that number is going to be what moves the stock in the short term but it's the most significant trend for tech investors to watch. >> thank you, we'll see you after the bell. we have 13 minutes to go. amex interestingly also one of the top performers today. goldman contributing, dollar index higher. . nasdaq up 11. and erica knuteson believes the best may be overseas. he'll tell us next.
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eric knudsen. what is looking relatively attractive? >> we're on the margin. we're a little overweight on equities. european equities being most attractive. and the ecb has got all of it, credit growth improving. so we're seeing good opportunities there. >> you sure they're not pushing on a string there? and what about japan as well there may be a similar argument? >> there certainly is that risk. we're much more concerned about it in japan. the b.o.j. has taken a lesson with the experiment with negative interest rates. we think they'll continue their stimulus in traditional and nontraditional. >> the in earnings market, coming back. >> we've been cautious on the emerging markets. on the two we prefer debt where we think we've got a little more safety. we took advantage of the kind of the selloff, the panic that we thought was a little overdone in february to add some exposures
and emerging market equity. mid-february, later in the month. then again later april. even as we've been dialing back. >> sort of bottom-timed it there, i guess? >> we got that one right. >> what about u.s. equities. we've talked about concerns people have on valuation, especially on the more loved parts of the markets, those yield plays? >> yeah, we would call it fair. in our global allocation funds we're biased towards value equities where we think there's been a significant gap between the momentum, the growth leaders and a lot of the value sectors where we think there are great opportunities going forward. >> does that mean cheaper stocks. the value indexes are full of financials and energy stocks and the rest? >> yes. we think there are good opportunities in financials particularly in the u.s. as opposed to other parts of the world. but in energy, there have been very good opportunities.
actually one of the more interesting areas we've seen in energy is double-deep and triple-deep energy credits which we think have been unfairly beaten down. >> and with financials, specifically, in new york, many of those piled into those at the end of last year got burned because it isn't playing out? >> yeah, absolutely. we do think that was overdone. we've seen that with the fed walking back. and the financials which around going to drop off a cliff. we prefer u.s. financials. more of the banks, the money center sectors. and we've been seeing that improvement in the last month or so. as that sector is doing better. >> just quickly, that implicitly a fed call? do you actually think we've got a couple rate hikes this year? >> we're on that side. we show the fed rising twice more and we think the economy can handle that. >> wow. there are others who have pushed out all hopes and said no more are coming. >> the markets can change lots
of minds. >> that's right, that's right. you've seen the market and the fed come closer together. and the markets come closer to our view as well. >> erik, thank you for joining us. the eposings countdown. and then buckle up. an orange onslaught. american express, qualcomm, mattel, sands, we'll have that in a couple minutes. you're watching cnbc. first in business worldwide. it's been shaken and pummeled. it's innovative enough to brake by itself, park itself and help you steer. it's been in the rain... and dragged through the mud. the 2016 gle. it's where brains meet brawn. lease the gle350 for $599 a month at your local mercedes-benz dealer. or the freedom to choose what doctor you want to see. so if you have medicare parts a and b,
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welcome back to "closing bell." i'm seema mody. i want to point your attention to the gold miners. they were initially higher around 3:00 p.m. they reverse trade and now on track to end discussion. newmont mining trading slight lower. this as gold prices decline. the u.s. dollar has been resuming its upward trend. you there go, market vector, gold miners, etf, down 2% on the day. >> seema, thank you very much. bob, a really quiet day in the green, though? >> yeah. there is a bid to the market. and everyday, a little more, we're 200 points away from a new high on the dow jones industrial average. we could get there, i think, at the end of this week if we get positive comments from the big
industrials like ge and caterpillar. illinois tool works had beat their numbers, raised their guidance overall. now, we're hearing in investors and it's not as bad as people feared. we did, as kayla mentioned sold off around a3:00. we have resistance. 2130 on the s&p 500. >> the question is if you get that sticker shock. we've never been higher. also the vix -- >> it's collapsed. >> -- it's fallen more than half since february. around 12. we didn't really spend hardly any time last year below 12. even in the summer, below it. that has some people saying, look it reflects a very quiet market or people are getting a little too comfortable. >> yeah, certainly. i want to point out, the dollar strengthening as mike was mentioned after 3:00, a lot went down. you take a look at utilities,
utilities were weaving a little before that. i just want to say that, the ipo market we keep talking about it but it's finally showing signs. mgm and it opened at 2175 -- >> mgm growth properties. >> excuse me. that's the week for mgm. and bats global, at $19 is holding up terrifically at $23. it's down a little bit today. again, two big ipos in the last few days. tomorrow, american renal. the biggest owner of dialysis machines here in the united states. they'll be here ringing the bell and talk ago about their ipo tomorrow. >> big question if you see some of the smaller vote saying we have a window here. >> i think they'll move. got to have growth there, and profitability, very important. >> bob, thank you very much.
ringing the bell at the ny, we have lynnette company and up at the nasdaq, it's magyar ba bancorn. >> thank you. mike, welcome to "closing bell" everybody. i'm kelly evans. here how we're finishing up the day on wall street. 3:00 p.m. the dow was up 100 points. slipping back below the 18,100 mark. still a quaint of .25%. the s&p 2102. nasdaq up 8 point, nin4998. it's about 50 points away from the closing level.
now, hold on to your hats. we're about to get a barrage of earnings reports. in fact, six reporters, six boxes, standing by to cover the results for us kayla tausche on amex. phil lebeau on united. john ford on qualcomm. susan lee for young brands and colby reagan covering mattel for us. that hexabox, guys? is that what six is? cnbc senior markets commentator mike santoli here with cnbc contributor carol roth. welcome. more earnings due out today. lindsey bell joins us. and steve vasso will join us in just a amoment. that hexabox. is that six? >> what happened to three? >> i don't know anything in particular happened a eed at 3:.
you've had a ke16% move in abou 9 1/2 weeks on the other hand you haven't had any jerky action. clearly, earnings have been good enough or at least good enough to make people hopeful of those everpresent second half comeback expectations. >> let's see if qualcomm is moving at all. looks like those number us are starting to come out. of course, i'll have much more information four -- remember with intel stocks that stock has halted yesterday. it looks like it's moving higher. carol, on the markets what do you make of things today? >> i think we're what, you know, 11 days away from may. what do they say, sell in may and go away. we may be in for that again. certainly, i'm somebody who is not necessarily as comfortable at these levels as february when i deployed more capital into the
market. i think there are a lot of things to be worried about. including the overall forward valuation of the s&p. vis-a-vis what you think the overall growth environment is going to look like. in terms of growth to gdp, i just don't think it justifies the valuation at the levels we're at. certainly the market disagrees at least for the time being. i would be very surprised if this is a rally that continues to be sustained. >> let's look at las vegas sands. as they comb through them, we got six-plus major companies posting the results this afternoon. again, we'll have more comprehensive information for you in just a bit. there's las vegas sands down in the early -- very early read, we should emphasize on this. lindsay, notably, we've had even more companies than usual beating their expectations, haven't they? >> oh, yeah, 74% of companies beating analysts estimates and
that's better than the 66% historic average. but it's not that surprising because numbers were cut significantly in the first quarter. we haven't seen a cut like that since the 2009 period. so we should continue to see better numbers come in. and companies are providing guidance better than what analysts are expecting. >> steve off the floor. do you know what happened at 3:00 today? >> yeah, everyone got a little scared. i will tell you, you have to look at all of these things as support and resistance levels. so we were touching basically some resistance levels in gru i. and also the s&p cash. you bang off, you come back, give it time to absorb. we've moved really fast. and holding it is extremely positive. >> we're showing the shares of las vegas sands. our jane wells has those results for us, jane?
>> hey, kelly, a miss on the top and bottom line. they're saying adjusted earnings per share coming in at 45 cents. the street was looking for 63. they also have what a call a hold normalized 67. total revenues coming in at 2.72 billion. that was another miss. the street looking for 2.9 billion. now, it looks like the weakness for the most part may be in las vegas. the venetian mccow operation have net revenues of $700 million. vegas came in at $380 million. i have to go through the number morse carefully to see what's happening in china, in particular. but some, at least at first blush, decent news about china. overall, the number is a big miss. >> jane, those shares down 6%. steve, it's interesting that
it's going to shift from mckow to las vegas. >> it's going to be 2 to 1 by las vegas. if you look at that shift, las vegas being the weakness, there's a reason why mgm has underperformed, it flipped in leverage versus them and vegas. this is outspoken, adding a lot of tailwinds to the game. if you believe china stabilized, that's where you'll be. >> but if you believe there's a problem in vegas -- >> trying to read through that. this is what happens. it doesn't take a whole lot. >> but it very different than what the average investor was expecting. they were expecting there to be strength in las vegas. >> right. >> especially as the consumer strength has kind of u.s.s.ed itself out. >> john ford has the quarterly
results. >> overall, the numbers look pretty good. top line, we were looking for revenues 5.34 billion. qualcomm turned in 5.56 billion. the street was looking for 96 cents nongap. qualcomm turned in 1:04 cents. on the guidance, i said watch for msm ship shipments. we were looking for 185 million on that line. it came in on 189 million. pretty much in line. a little bit higher where some analysts hoping it would. on the guide. on the guide, they say that revenues for q3 should be $5.8 billion. that's a decrease of 11% to an increase of 3%. sorry, the range. i gave you last year's numbers. the range will be 5.2 to $6 billion. that's an increase of 3%.
potentially getting some growth are there. msm shipments, 175 to 175 million. that's the samemy point. 185 million. it shows some stability. not the kind of growth that some people were looking for it would be a decrease of 13% to 22%. i'm sure analysts will be listening to the color around msm, just the overall demand. now do they feel about the snapdragon 820, their flagship. of course, i'm going to talk to qualcomm's ceo on the phone in a few minutes. >> john, we'll see you in just a moment. those shares have been fluctuating. lindsey your thoughts? >> i think expectations were super high. you got to remember the stock moved up 21% from its low in
february. so there was great contract wins with samsung and even license with lenovo. i think there were huge expectations going into it. >> exactly. same old tune to some extent here. let's check in on toy maker mattel now. we've got the earnings with courtney reagan. >> hi, kelly, so mattel posting a first quarter loss of 13 cents per share. that is a wider than expected loss. consensus was for a 7 cents per share loss there. so that's a pretty wide miss. revenue, though, beating at $869 million. the street was look for first quarter mattel revenue of 861. and then when we look at the revenue by segment. it does look like the total girls and boys revenue was disappointing as well as the american girls. both of those revenue segments disappointing though fisher-price revenue coming in
worldwide looking at worldwide growth for barbie flat for currency and for the wheels division which includes hot wheels actually up 9%. calling for more details but that release isn't that detailed, kelly. we'll have for wait. >> earlier in the week we had hasbro that did nicely, help from disney lines there. mattel, a different story. >> yeah, i have a client that's a direct competitor to mattel. i know the currency issue has been a huge drag on sales across the globe where different people are interested in toys, collect toys and things like that aren't able to do that avidly as before. it's very interesting if you look at mattel's valuation, vis-a-vis somebody who doesn't have those key franchises, mattel looks very expensive. >> there's one place that's not
expensive, is the dividend 4.6%. >> people were factoring in that loss of the princess line. that was already in the number. hasbro was a little telegraphed. both of them year to date have performed pretty well. >> cause see on the screens there, amex starting to come out. you see if it's moving at all a little bit. we'll just keep an eye on it. let's go back over to las vegas sands in the meantime, though. this is really interesting. we just had mgm put its i po into the markets you have to wonder how different it might have been a couple hours later. >> that is true. it's basically areit that owns the buildings. >> let's get back to jane wells on more on las vegas sands. jane. >> one of the reasons, kelly, for the miss is they're blaming
the strong dollar in singapore. net revenues for the sands property in singapore came in $6.4 million. the street was expected $338 million. significant ga po singapore a big miss. >> american express earnings are out. kayla tausche has results. >> it does look like a beat on the top and bottom line, kelly. revenues just shy of $8.1 is billion. that is a beat. the expectation was $8 billion. eps, $1.25 a share. still a decrease of 2% from a year ago. the company did see the company go up slightly from marketing and promotion initiatives. they did also see an $84 million restructuring charge. overall expenses were $5.5 billion. that actually was up 5% from a year ago.
despite the fact they had the restructuring. the company did reaffirm it's full-year guidance and $5.60 a share for 2017. the ceo says that remains appropriate given the environment that we are in. so, certainly, it would be a beat on the top and bottom line for amex. slight increase in expenses. slight headwind fund as we expected. we'll give you more as we have it. >> kayla, back to you. thoughts on amex, mike. >> i'm not surprised. a third of the way through the year if you can have confidence in the consensus forecast for this year, it looks cheap. it looks like 12.5% earnings. >> and they're still trying to get costco off their pack. the sock is down 30%. they lost 47% of the stock's
value. and the winners have been basically mastercard and capital one. those are the names that really benefited. i think mastercard is probably up 20% from the time when they lost -- when american express lost it. but year to date, american express didn't lagger -- i don't know if you have seen money coming in. >> i've seen a ton of uncertainty because of the loss of costco and jetblue, trying to figure out how they're going to make up that business but it seems like they're doing okay. >> they also have other businesses that more strategic to the customers. i think that that's a bigger issue. but this particular name, though, i don't see the stock moving meaningfully until they have some sort of a management restructuring. this is one of those head scratcher names, mike, like you were saying, an incredible brand that really hasn't been able to leverage all of the assets. >> this is not your dad's brand, though. >> i think that's actually totally valid and you have to
ask if it's going to maintain that premium status. >> the shares up nearly 4%. a quick recap, las vegas sands, qualcomm, and still waiting on yum! brands. it looks like the exception of amex, it's now up nearly 4%. >> yeah, i mean, you're going to get that last to the dance type play where people are going to start buying -- down 6% or 5% coming into this year to date. there is the healthy amount of that catch-up trade. i just don't know how long it lasts before people say this is the one -- >> but it's a different business model. that's the issue. this is really more between a hybrid between a visa and and a bank. if you're looking at visa or mastercard, that's why you're getting a different kind of evaluation on amex. >> that's the reason why money hasn't been flowing into that,
people want to play that direct fewer play than that banking. >> exactly. >> let's have a quick look at those shares as we get the full results to you. yum! brands in focus because of its efforts to right the ship in china. we'll have more detail as in just a moment. mattel, anything else to add? that one does seem specific to questions about which of its retail lines are succeeding? >> it does. also keep in mind, is this not the biggest of the year for mattel. i do recall years ago. you talk to the mattel people, you ask about traditional toys. they always talk about the global appeal of the same type of toys, basically play patterns of little kids are the same around the world. >> think about their marquee brands. their marquee brands are barbie struggling for a long time. and hot wheels which has lost luster versus somebody like hasbro which has hopped on hot
properties they've got star wars and the like. i think it continue to be a struggle for mattel to redefine what they're going to do with their business. there's been talk with mattel and hasbro potentially merging to bring that together. maybe that's an interesting play. right now, i still don't see those brands barbie and hot wheels, those aren't the hot brands that are all of a sudden going to justify, in my opinion, the 39 times p.e., even if you have the huge dividend. >> i think toour point, this is a transition year for mattel. 2017 is going to be the bigger year with the movie slates. wonder woman, cars 3. yum! brands, those shares under pressure as we started to get results. susan lee has it. >> the shares are going the opposite direction. that's because we got a big beat. 95 cents in the quarter, calling for 83 cents. when it comes to revenue, a slight mis-hit here.
yum! put in 2.62 billion. i think some of the silver lining comes from china. sales were expected to be up by 2.2%. by got 6% increase on a year-on-year figure. it looks like china is recovering from them. china accounts for half of yum!'s business. when it comes to other break ground, kfc, and pizza hut and taco bell in line, kelly. >> interesting reversal there up about 5% and then some. now we have two companies, yum! brands and las vegas sands posting a little better in china or macao. what does that tell you? >> that's pretty impressive. various parts of the markets. even though the shanghai market has been as jumpy as ever. with the laggard stocks, this is a 95 stock.
>> to mike's point, when you start looking at china, this is the big thing on yum!'s back. everyone was really selling, laying into it. then when you start talking about that china spin. i think things -- as long as china wasn't as bad as everyone thought it was going to be you were looking for a pop of the stock. we also had an activist starting to talk about it yesterday. dominos has been a leader, mcdonald's. changing the menus, changing that drivethrough. people spend money, 20% of where they spend the money on is where people are shrinking the menu down. >> i think yum! had had very specific issues to certain of their brands in china. >> i think it's 100% china. this move that you see is 100% china. >> i don't think it's as much as china stabilizing as yum! getting their act together.
we'll have to see as earnings play out which rings true. >> that's a great piece. steve, we'll let you guys go. there's more coming up top of the next hour on "fast money," talking to a five-star fund manager who is discovering a new trend in tech. we've got much more in the tidal wave of earnings. we still have to hear in united. up next, is the worst now over for amex? and later, former secretary of defense william cohen weighs in on saudi arabia is and national security. don't go to paris.
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together, we're building a better california. welcome back. we're still waiting on those results from united. let's get to susan li for more on yum!'s results. >> yeah, kelly. yum! brands after hour, the full year, they raised the guidance, up to 12% which is higher than the original from 10% when it comes to earnings growth. we're awaiting the analysts call tomorrow morning where everyone is looking for more guidance as to what they're going to do with the china business b as you know there were have been several reports, cic and kkr might be
involved in taking controlling of operations. obviously, investors want more clarity on that. back to you. american express, moments ago the company reported earnings atop expectations chris dones does it buy them some time? >> i think it does buy them some time. what it shows they're able to add 3 million card holds this quarter which is great for them. that's off a base of 40. they moving on in that front. they still have a lot to do in terms of the costco business. this is a step in the right direction for american express. >> you know, chris in the leadup to this report, you had a lot of people coming in trying to figure out what the sum and parts of american express is worth. what's the back end of it was relative to the visas and
mastercards. where do you think this thing should trade as kind of a hybrid of a lender? >> it should trade higher. right now 12.4 earnings. you look at visa or mastercard, a 12 multiple. and you can look at a case of american express which generates half of its revenue from discounts or transaction revenue, it deserves somewhere in the middle of the pack there. now got to work through costco and other things first. but ultimately, that's where the multiple should shake out over time. >> chris, it's carol roth, this seems like the type of company that would be a perfect activist corporation if it were not for berkshire having such a large position in the company. why has warren buffett not put more pressure on this team to do the kinds of things you might
see an activist do? it does seem like there could be a lock in this space and that the team isn't aggressive enough? >> i agree with you on almost all those points there. i think there could be more pressure on management to do more. i think we've seen in activist that they're towing the water on this one and sort of pulled back. i'm not sure why mr. buffett has the views he does. this is a great franchise. it's a trusted brand. it's well positioned in a lot of ways it's the kind of company that a lot of startups want to partner with because american express cardholders spend two, three, four times more than other cardholders. >> chris, what's the most significant move for this company next, quickly? >> i think it's expenses on the billion dollars of expense cuts they expect by the end of next year. that and management if they can shift some stuff around. >> chris donat, joining us.
thank you. qualcomm shares are falling. despite better than expected earnings. we're going to hear from the ceo next. qualcomm shares roughly flat right now. amazon took on netflix by announcing the streaming service. now, it's taking aim at the cable industry. those details are also coming you on the "closing bell."
the numbers, hi, phil. >> hi, kelly. united airlines reporting earningses of 1.20 per share. that beat 1.08 per share. that's a decline of 4.8% compared to last year. the main metric that everybody is focused on with online united but all the airlines what is happening with passenger revenue with the seat model. it dropped 7.4% in the first quarter. you can blame that on the strong dollar, lower oil. and one other interesting note, it noticed a decline in drama-in close-in reservations for business travel around the east easter holiday and spring break. again, united beating the street by 5 cents. there's a conference call of the ceo starting in about 15 minutes. we'll hop on that if we have more color from the earnings report. we'll let you know. >> phil, just briefly, what is
this closing business travel? does that mean last minute. >> yep, basically next five days, got to book it. >> united shares are a little weaker on this report. tomorrow on "squawk on the street" don't miss the exclusive interview with ceo oscar munoz since his heart transplant in january. that's tomorrow at 9:00 eastern. what do you make in the 7% drop? >> certainly, i'm not to blame for that. i'm doing my part keeping united flying the friendly skies. i don't think this is really the focus for united. they have made a big announcement with the shift in the board. i think everybody is looking at what's next for united and can they change the dynamic. i know from an internal standpoint, everybody is very excited with oscar getting back involved with compete. so, i think there's a lot of good expectations going forward.
>> i think industrywide, you're stealing with this idea has passenger miles peaked. you look at it cosmetically, all of the stocks look relatively ship. delta is even cheaper. the question is do you buy a deep cyclical stock when -- >> i think the whole industry is going towards finding different ways to generate revenue from ancillary services some of the things we're used to being bundled in. but just other ancillary bundled in things. like club lounges offering things. let's get to sue herera. >> hi, kelly. secretary of state john kerry arriving in egypt for a brief visit. he met with egyptian president a assisi to discuss a range of
issues. and he will join president obama. >> there are reports of a deal between volkswagen and u.s. that would avoid a trial this summer. ap reports volkswagen insitting to bay pay $1 billion. in a surprise move, embattled pennsylvania attorney general kathleen kane has dropped the court motion that accused prosecutors of leaking fbi recordings in a perjury and obstruction case. kane will not seek re-election. and mcdonald's is testing a bigger and small version of its big mac. they're dubbed grand mac and mac junior. and they're being tested in ohio and texas. i don't know if you're doing a big mac, do a big mac. don't do a big mac junior. it's kind of counterintuitive.
>> yesterday was all you can eat fries. today it's grand mac. >> it's part of the whole rejiggling of mcdonald's and its menu. it has been page off. the all day breakfast is helping its bottom line. it's working. las vegas sands earnings called out to begin for monetary coming up. first, former defense secretary william cohen joins us whether we risk saudi arabia with the 9/11 bill allowing victims of terror attacks to sue that nation. stay tuned. they found out who's been hacking into our network.
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what's recommended for me. x1 makes it easy to find what blows you away. call or go online and switch to x1. only with xfinity. welcome back. here's a check on some of the earnings that we've seen so far las vegas sands just beginning. we'll bring you the highlights. meantime, mattel, las vegas sands under pressure. qualcomm and amex higher on results. we told you harriet tubman will replace andrew jackson. and the first treasury secretary alexander hamilton will remain on the ten dollar bill. nbc's tom costello spoke with secretary jack lew earlier today. here's what he had to say.
>> we also heard about literally hundreds of ideas of things we should represent. fairly early in the process we made this bigger. we said this shouldn't be about one picture on one bill. that's where this idea derived from. it's much bigger than honoring one woman. it's able to tell a much bigger part of our story. >> by the way, former fed chairman ben bernanke weighing in on the blog saying perhaps the treasury should move like the post office to avoid an uproar of who's on them or who's not. >> i don't know if that's feasible. seems like they were trying to slow down the process because of a hard transition. >> secretary lew giving tom c t costello his take on saudi arabia. >> the saudi economy is in a little trouble, as you probably know better than we do. they had borrow money for the
first time in 20 years. there's talk of them offloading bonds and treasuries. what the state of the saudi economy right now? and what is the impact on the united states? >> look, obviously, low oil prices are having an impact on the economies of countries who are big oil producers and exporters. i think saudi arabia still has considerable financial bandwidth and ability to manage its affairs. and we consult closely with the finance ministry and the central bank. and we keep very good communication with them. >> what would be the impact if the saudis did sell u.s. treasuries if the 9/11 bill were to pass? >> i'm not going to comment on speculative financial transactions. obviously, the president has addressed that with the saudis all the time to improve the cooperation on things like stopping the financing of terrorism and innocent money activities. and having a healthy global
economy. >> if oil doesn't recover is the saudi economy in for troubled times ahead? >> i think the saudis like all oil producers are coming to terms with what is a lower price of oil for now. i think one of the things we all know about oil surprise, you know, they go up, and they go down. and you have to plan on a certain amount of volatility, if your economy is based on a commodity like oil that fluctuates in price. >> joining us right now for more on saudi arabia is former defense secretary bill cohen. thank you for joining us. and what do you make of the relationship or the tension here between the u.s. and now saudi? >> well it's quite strained. the president goes there at an interesting time. and i think that there will be an opportunity for all of the gulf leaders to lay out some of the their complaints. i think as far as the saudis are concerned three or four different things. number one, they're obviously concerned with what appears to be a shift on the part of the
united states towards iriran, especially with a nuclear deal. they're also concerned about the lack of an intense situation with the united states with respect to isil in both their flens presence in iraq and syria. they're also concerned about yemen and syria. and they're concerned about the proposed legislation, the 9/11 bill that's working its way through congress. >> yeah. and on that bill do you think it would be -- do more harm than good long term both for this country and for others? >> i think we'd have to take care here that we don't do something that's going to open pandora's box as such. if other countries do the same, and they might be tempted to because the united states will set the standard, then the question becomes what happens -- well, take today's headlines. we're going to do more bombing in the area of iraq and syria. more civilians are going to be killed.
what is to prevent another government from saying well, we think the united states should be held liable for those civilian deaths, opening up the floodgates to start suing the pilots, those preparing the war plans all the way up to the secretary of defense and the president himself. it's not likely, but it's possible that those are the kinds of things we'll have to deal with in the future. so i think the president is correct to say this is for the government to resolve. if there's any allegation that is supportable on the testified that the saudis were at the governmental level involved in 9/11, well, that would require the u.s. to take action against the saudis but it's not up to individuals to do that. and i think that's the way the law should remain. >> do you think there needs to be some clearing. air in what saudi arabia's role was in the 9/11 attacks? >> i do. but we have to remember the 9/11 commission was comprised of many individuals, all, or certainly most of them had deep backgrounds in intelligence. and they had access to all of the intelligence the united states had.
they came to a conclusion there was no evidence that the saudi government or high-ranking officials were involved. there's a separate report, a 28-page report, that has not been declassified. now, it may be that the administration is going to say it's time to declassify that. and that may open up the question of what -- to what extent, if any, the saudis were involved in the funding of that -- those individuals. but there's an additional element involved. and that is, of course, the entire issue of wahhabiism, the form of it and did it lead to individuals embracing it and therefore directly being a cause. you have to rely on the 9/11 commission if any of those members believe that the saudis were involved and failed to voice that, then they would be engaged in a massive cover-up of
unfortunate circumstances. >> the stakes are higher. thank you for joining it. bill cohen this afternoon. amazon made headlines announcing plans to launch a video rival service with netflix. now it's launching a service that could threaten the entire industry. details when we come back. suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of the at&t network, a network that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.
program. it's launched it will bring all of the top streaming services in one platform. he said amazon has secured nearly 30 partners including apps like starz and showtime and plans to announce dozens more. how big of a threat is amazon to traditional cable? let's bring in dan raburn for his thoughts. dan, what's going on here? >> thanks for having me. the biggest thing that amazon is doing is helping with fragmentation in the market. as consumers we don't want to go to five or six different places to sign up for accounts. amazon, hulu, they're basically in one place. >> dan, how realistic as everybody gets into the content game is that really going to be? it seems to me at some point we're going to have to go to
multiple places to get the content. amazon obviously is very sexy right now. but over time, they're certainly not going to be able to pick up the smallest guys. the smallest guys aren't going to be able to afford joining forces. what do you think towards that? >> that's true to a degree. talk about cbs. cbs rolled out cbs all access. they spent about 18 months to bring it to the market. a customer like cbs or another broadcaster content can go to amazon who has an end user ecosystem that can get that is its service to consumer right away, 18 months, the biggest thing they can do is market that to specifically the customer. the advantage that they have, the fact that they have your billing information and the fact that you go to amazon for content it makes it easier. amazon is making it a lot easier for customers, consumers and broadcasters. >> it seems more, ultimately, this is where netflix would want
to head too. it wants to basically be, i would think, the interface between internet television, right? it doesn't have to be this idea that it's an integrated model and only distributes its own stuff. why can't they be the interface and have an a la carte menu of other options as well? >> that's a good question. something that we're wondering is netflix going to do. are they going to offer more alternatives other than what they're licensing. to date, they haven't wanted to do that. we'll see if amazon forces them to become internet tv. >> dan, thanks for joining us with some thoughts there. now qualcomm's ceo is speaking out to jon fortt we'll bring you those, after this.
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weakness in the premium tier in other areas, particularly other emerging market areas including latin america, and some other areas. the strength in china is interesting given intel's commentary on pc sales in china, which were weak. lte, the transition to higher speed wireless, is still driving that china demand. they also told me the snap dragon 820 will show up in the current quarter q-3. more in q-4. that's lifting margins. they're raising that four points. the emerging markets, weaknesses which caused them to take down their overall expectation for shipments for the year, but margins good. general strength across the board particularly in china, more commentary on the licensing agreements in china that caused them so much trouble last year. they now have more than 100. they seem to feel those are behind them. qualcomm's been going through restrek turg for a couple quarters now.
qualcomm saying they already pulled some of the cost savings forward. they're doing well on that. and continue to be on track with all of those moves, kelly. >> jon, just briefly now, we've heard from ibm and intel and others, here now qualcomm. how would you put these in context of what we're learning about tech broadly this quarter? >> this is a head scratcher. the picture had been a shortage of demand across consumer and enterprise. some strength in cloud. the big providers like your amazons, microsofts, facebooks still buying. weakness on the pc end as well. ibm saw weakness that was causing them to cut work force overseas. this from qualcomm suggests it's not just an across the board story and weakness in demand. smartphone demand, x the premium here actually pretty decent, especially when you get out of emerging markets. no one size fits all in china
either. >> we've heard that from a couple over companies as well. thank you, jon, so much. alphabet will headline another huge day of earnings on tap for tomorrow. we'll tell you what to expect. take a look at this calendar. oh, man. we'll be right back. you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise...
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welcome back. even as we're sifting through and preparing for conference calls this hour, from the earnings we got this afternoon, tomorrow we're going to get hit with another barrage. alphabet, starbucks, visa, microsoft just to name a few. again, trying to check the strength of the economy. estimates have moved down. >> not yet, no. i think alphabet will be interesting. it's a widely owned name. it's hovering around the highs. i wonder if the honeymoon is still on. with the new cfo and more plan to be more transparent, that will be an interesting tell, at least when it comes to mega cap. >> for me, it's starbucks. and what's going on both in terms of their mobile app and
loyalty program. there's been a lot of fallout from it. be interesting to see where guidance goes. or perhaps that they may dial back expectations because of that. >> starbucks, a couple of months ago, a huge sort of plant the flag movement to china. going to open many, many stores there. the consumer demand for the next generation. >> yeah. that's multi-year, and people love the idea. they also were sort of the exception that was proving the rule over there, where starbucks seemed to have its own momentum. it wasn't really about the health so to speak of the chinese consumer. >> street blocks in beijing are so big, it makes washington's blocks look small. there could be a starbucks on every one of those blocks and it would still be too far. >> if anyone can put them in a location where you won't have to walk too far, it will be starbucks. >> we'll get the earnings tomorrow. the calls all start, what do you think will be most important? >> i have to think qualcomm we
pretty much where they stood on this. wynn is up off the lows. you want to hear what's going on. >> is that nevada? tourism in nevada, that will tell you something different about the consumer. >> carol and mike, thank you, guys. "fast money" begins right now. >> "fast money" does start right now. i'm melissa lee. traders on the desk are pete, brian and dan. tonight on fast, earnings bo nan sa. qualcomm is slightly higher. las vegas sands is tanking. we'll have full team coverage throughout the area with the headlines as they break. a top technician said new highs are coming if two very important things happen in the market. two tech stocks traders see moving, $50 billion tomorrow. the names and how to play it. but first, we start off with the market that just