tv Closing Bell CNBC May 5, 2016 3:00pm-5:01pm EDT
does not help donald trump in the general election. >> john harwood, thank you very much. we'll be talking about this a lot in the next coming months. >> ah, yes. thanks for watching "power lunch." >> "closing bell" starts right now. hi, everybody. welcome to the closing bell. i'm kelly evans at the new york stock exchange. >> welcome back. i'm bill griffeth. oil in the green today. well off the highs right now. one of the reasons given is the major wildfire moves moving closer to the sands. i have a bone to pick, but that's for another time. we're live on the ground in alberta, coming up in a moment. >> we have an exclusive interview with dennis lockhart coming up. we'll talk to him whether a rate hike is in the cards. >> stay tuned for the news. earnings, wynn resorts, squared,
leaving a wall of smoke was closing in on our location. we had to move quickly. we snapped a photo that i believe we can show you. it looked like this big plume of smoke. over the last few hours we were camped out near the highway. we saw a long line of emergency vehicles headed into the blaze. it isn't threatening oil sands operation but production is being impacted. reuters have calculated that at least 140,000 barrels per day in capacity is now offline which isn't huge in the grand scheme of things but a lot of that oil goes the u.s. an alberta official says they're conducting basic wildfire training. from the looks of it, there have been a lot of firefighters and vehicles heading into the affected area. so who knows how long it will be. we'll continue to push it as it pushes further and further down the highway. back over to you.
>> dear degree, thank you very much. >> later they'll be featuring a panel of four pretties. >> thank you very much. i'm here with dennis lockhart. dennis, let's start right off with growth. is weak growth that we've had first quarter, 0.5% maybe to rise to 0.7%. how optimistic are you we'll have a rebound in the second quarter? >> first, it's a little early to tell about the second quarter. we've got a little bit of data. the data aren't in any way signaling certainty how the second quarter will go, but i'm sticking to the view that the remaining three-quarters of the year will be much better than
the first quarter, and, therefore, the first quarter is an anomaly. ooert it's statistical noise. i'm optimistic for the remainder of the year. >> you say you could support a june rate hike. i'll take -- is that wrong or are you laughing? >> i'm laughing because i think we should keep the option open. but i'm very much at the moment on the fence and lit depend how the data come in. >> that's what i want to talk about is the data dependence here. what does the scenario look like in terms of do we get a jobs report tomorrow and gdp growth and inflation that's one that, okay, you could support a june rate hike? >> the report tomorrow, i think, is important. we'll get a second one but for the june meeting, and clearly, i think, in terms of focusing on our objectives, a continuation
of solid reports is very important. i would also be looking for a growth picture that seems to be more consistent with the reports and, therefore, data coming in that suggests that we're going to see a bounce back if we take it at face value so the overall picture is more coherent. today we have a disconnect between the growth numbers and employment numbers. clearly i'd like to see inflation numbers continue to move in the right direction. >> is 200,000 your benchmark or if it came in at 15 oar even 100 -- >> 200,000 is a good round number. i'm not going to panic if we're below thachlt certainly i'd be pleased if we're above that
tomorrow. and any number that comes in has to be taken apart and decomposed and looketed a very carefully to see what the underlying story is. but, you know, for practical purposes, 200,000 as a threshold is a good way to kind of organize your thinking. >> june is a tricky month. there's this brexit vote. >> after we meet. >> after you meet, there's the brexit vote. how much instability do you think that could relate if, let's say, britain did leave the european union. what could it mean and how much could it stay your hand? >> it's a big unknown and i think it's possible as the market absorb information running up to the brexit vote that the markets are volatile and certainly the brexit vote raises uncertainty. some of that is short term, but a lot of it is profound long term uncertainty about the uk,
about the european union. it's a consideration. i can't be more details than that. i don't have exacting scenarios. >> if polls were even going in, would bit a bad time to hike rates if you go either way? >> i hesitate to take a position on that at this stage. let me just say, steve, it's a big deal. and therefore it's something that i think as a policy maker i have to pay real careful attention to. >> another big deal in this country is the presidential election. and one of the themes that's been consistent in the presidential election is a sort of anti-trade. it appears to come from both parties. is that as an economic policy maker, something that gives you pause, that creates uncertainty in the outlook for you, giving you the idea that america might be pulling back on international trade? >> as a policy maker, i'm watching the electoral season on
slis wi obviously. intuitively i have to believe or am prepared to believe that who gets elected in november or what policies ensue from that, that choice from the public could be affecting consumption decisions and maybe investment decisions of businesses, both of which have been weak recently and both of which are ski determine nanlts. i think the election, it's fair to say, could be a factor in this year's economy. longer term, it really will depend on what the elected president is able to implement. >> do you think a loud kotb achieved? to you think it's possible that international agreements could be changed and the immigration
policy could change drastically? >> i think the one thing to conclude from this year is whatever your starting assumptions are, you may want to revise them. i just don't know. i really don't know. presidents certainly can have a big influence. but at the same time the president's ability to shake the outcome is perhaps not as that of the federal reserve or congress with fiscal policy. >> dennis, thanks for joining us. >> thank you. >> dennis lockhart with atlanta fed. thank you. >> let's get to our "closing bell" with the dow down 30 points. joining us here at post 9, serge, what did you hear from president lockhart and do you
think the market has begun to price in the possibility of a june rate increase? >> actually i wrote about that the other day in one of my notes. >> that's why i asked. >> thank you. these are uncertain to me right now. that's his job. he's trying to sound uncertain. this meeting tonight is really a circle of hawks. their talk is to talk the dollar up. they like that around 95. they want to leave that possibility open for a june hike. core inflation is running around 2.2%. that's already. the macrois kind ofousy but not god awful. i think we have priced in over a six or seven-day peered the possibility of a june hike. >> meanwhile sri, you're talking about the ten-year yield going below, right? >> i see it going from the 150 toward 1%. i'd be saying when everything
was looking for it to go up, now it's going toward one. there's no fed rate increase coming up any time soochblt i don't think june is an open thing at all. >> what's the fundamental reason that you think conditions are so weak that -- there's a lot of skepticism already priced in with the tenure yield of about 10.175. what pushes it down to 1%? >> three reasons, kelly. first, you look at the ten-year german bund. you're talk about one country creating 30 basis points and the other, 75 to 180. second, i don't think the radius is going pick up by any means and third i think it's going to
slow and not just in the first quarter. we're not looking at more than 1.5% on the entire year. but it's been so long after the economic recovery began. >> hey, rick. i know you're stunned that you heard a fed official on the fence about the possibility of raising rates in june, but what did you hear and, you know, in the context of where we sit with the markets and whether or not they are pricing in a possibility for june. >> well, in the memory of the late yogi berra, deja vu all over again. i harden back to lockhart and others, the april meeting being very hawkish. i remember march 29th, appearance by danny yelin in new york to dismiss all that and show she's in crow. it's pretty much the same. same cast and crew. they're hawkish and i agreed with much of what mr. lock hard said. let's look at the reality.
it will be point to see if second quarter gdp picks up. two days after the fed meeting. okay. let's go to the next meeting. september -- excuse me, i'm sorry. the next meeting is in september but i don't know if they can push september through but it is a possibility. november 2nd is the next meeting. the election is the eighth. my only opinion, it lives december. in regard to it, he nailed it. is renailed it. i even stopped paying so much atechks to the boon. can we get to 150 or 1%? sure. if the jgb tenure is at minus 50. we have this policy contagion issue that's going to be very difficult to deal with. we showed the world some tring. boy, they learned really quickly
and i just thing to fight this kind of dropping yield outside of the u.s. >> sorry to deal in here. it appears a honolulu ocean cargo carrier had a lot to do with dragging it. it's down 12% and the transz ported turned negative. they're down 77 points and that is weighing on this market. they talk about weakness on the market. what do you think? >> things are deteriorating, but you're missing the retail story. they were surprise. three of them are among your weakest interests on the day. >> serge is getting popcorn out.
last one? >> they're stuck. they have presidents giving contradictory views. today alone we had three contra dixs. i think it's to keep the market from speculating too much but they really cannot hike. they're put into a zero interest rate for so long, i think they can't change it. that's where they are. >> that is where they are. gentlemen, as always, thank you for your thoughts. see you later. >> 45 minutes go. the dow down 25 points. it was in positive territory most of the day but a lot of things happening. the dollar index interestingly enough knocked back. the s&p is down. >> this time, gopro, squared, wynn resorts will be among those. we'll tell you what to expect when the tape hits, coming up.
>> up next our f, what's trendit in the stocks. you're watching cnbc, first in business, worldwide. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. this cit added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps.
welcome back. about 30 -- i don't know, 40 minutes left in the trading session. chesapeake energy is higher. up 34%. the shale gas explorer signing a deal to sell oklahoma drilling rights to newfield exploration for $70 million. that brings the total assets sales for cheese peek this year to $2.1 billion and the company says more are on the way. chesapeake also narrowed its quarterly loss, basically in line with wall street forecasts. now tesla law. shorting the stock. it's down almost 5% on the session. gunlock telling us on the show yesterday tesla could be a buy if it continues. >> i've liked tesla for years because of their battery technology, and i've told them
elon should have a badry company. >> tesla shares have been on a wild ride. it's trading at $212. jeff needs 200 more before he gets in here. but phil lebeau has more on tesla, phil? >> it's not just a battery company. it's an auto company. it's the auto business getting a lot of attention today particularly for the production from 2018. they believe that by 2018 they'll have an that. by the way, any analysts and i read almost all the notes, all
of them doubt tesla can hit the sales or production target. here's why. when you look at annual sales. last year it was 50,000 vehicles. 50,000 last year, a ten-fold increase by 2018. many are saying that's too far of a jump to be made by an automaker. it is hinged on the belief from tesla that the model three, of which they have 400,000 reservations for, they'll get more reservations, and that will be the real catalyst between behind this. first sales by the end of 2017. and, oh, by the way, for those skeptical that tesla could do this, we asked elon musk on a conference call, we asked him. >> the naysayers say that the very same people will transition
from saying it was impossible to saying it was obvious. >> >> elon musk said he heard it before and he heard it sfwechblt we know this. almost everybody on wall street say they're not going to make 500,000. >> i also wonder, phil, how much money they'd need to take care of current production levels, not to mention future. it sounds like the money they raised were used to repay a loan. our guest yesterday told us they might need to do 400 to $500 billion in capex. maybe they can raise it on kickstarter knowing elon musk. >> there's going to be a capital raise. there's going to be a capital raise. elon musk said it ee either going to happen in the form of debt or equity or some pham of
operation. you cannot expand production to this degree without needing that money at least for a cash cushion for the company overall. >> yeah. lardless as mentioned even as they try to ramp up production. phil, thank you. >> you never see a skeptical on tre pre nufrmt there's never a douchlt that's how they are. >> you need guys like that, dreamers and people willing to fail. >> let's see if they can do this. we're heading to a close here. we'll see if it can turn possible tij. the nasdaq down 6 3/4. coming up, gopro, squared and wynn next. up next from hollywood, walking, here he comes. carl reiner to talk his new film and his thoughts on the presidential race, and he has a couple of them. stay tuned.
we started with it. we already started talking. an award winning actor and filmmaker with such classics as "the princess bride," ted cruz's favorite, and "when harry met sally." >> talking about his latest film, which is "being charlie," rob reiner. >> thanks for having me. >> your first time. >> first time at the new york
stock exchange. >> what's your impression? >> there's a lot of colors here. it's very exciting. and you were telling me that there used to be a lot manufacture activity because now so much of it is online, not as much actually here at the exchange. >> well, the same in the movie business, right? >> yes. >> you have so much more electronics than you used to, right? >> yes. absolutely. there's no movie you can make now that doesn't -- you can go anymore. i mean i made a movie years ago called buck eed "bucket list" a never left the parking lot. we went to the pyramids and great wall of china. >> your new movie is "being charlie." your son wrote it. >> right. >> did it come through the scripts or what was it like working on it together? >> when your child is going through difficulty and nick did, you know, from 15 through 19. he's in very good shape now.
he's in very good shape now. but during that period you're like parent. you just want to keep your child safe and you'll do anything. as we say in the script, you'll listen to anybody with a desk and a diploma and you'll do anything, but you don't really get to know because the programs are so kind of cookie qatar. it was through the making of the movie that i really got to understand what he had experienced and i think he understood what i was going through and what his mother was going through and it brought us closer together. it was an amazing experience for me. >> being a parent watching your child go through that. >> no. >> you pretty much relived it. >> it's devastating. it's absolutely devastating. yes, we did relive it. it was uncomfortable but at the same time the most thrilling creative experience we ever had. >> this morning speaking of devastating. >> are you interested in politics? >> no. >> this morning on "morning joe," you said a lot of trump
supporters are, quote, racist." trump called in this morning to say this. >> people haven't had a wage increase. one of the reasons i have 25,000 people show up to hear me speak at one night and turn away 15,000 people is because these workers, these incredible workers, thee are the middle class, many of them haven't had an effective wage increase in 20 years. >> don't you think just people are angry? they're angry at washington and their boss? >> yes, yes, they are. that is what i said on "morning joe," that there is a big chunk of trump supporters who are very upset at the income inequality, the economy has left them behind. but the same can be said about a lot of the sanders supporters. same kind of feeling. feeling like the system is rigged, the incomes are not there. and yet there is a difference, and i eenl n'm not -- i didn't
trump supporters. say there's a strain of racists there. when you to the sanders rallies there is no racist rallies. >> there's things on college campuses of trying to say safe things or what have you. you near the filmmaking business. do you feel like you can't really say things or express things, that certain things are just very button because things have run amok? >> there are certainly comedians who feel like that. i never felt that. i came out of the '60s. came out of "all in the family," and i'm the same. >> archie bunker, what do you think? >> total trump supporter, total trump supporter. no question. >> good to see you. >> nice to see you. thanks for having me. >> by the way, i love following
your father on twitter. >> isn't he great? he's so much farther technologic lick advanced than me. he's tweeting all over the place. >> carl, we love you. rob reiner, thank you. >> thanks for having me. >> do you want to do this. >> no, please. >> time for a cnbc update. we're killing our director. sue herera. >> here's what's happening at this hour. the food & drug administration announcing a ban on the sale of e-cigarettes and other tobacco products. they must seek permission to continue marketing all e-cigarettes launched since 2007. senate democratic leader harry reid says democrats must guard. in a conference call he said the race could be a debacle for the republicans but he isn't going
to take anything for granted. a choking hazard has prompted money kin to recall about 108,000 pacifiers and clips. the clip cover can detack from the pacifier's clip. the company has received ten reports of such incidents but luckily no injuries have been reported. and kfc has a new markets campaign in hong kong in which it's offering lickable edible finer nail polish. you guessed it. lickable and new hot and spicy. yes, it does taste like chicken. you could say, you know what's coming here, it's put new meaning into finger lickin' good. i had to do that. >> of course, you had to. that's what they're expecting us to do. >> that's right. >> thank you. >> you're welcome. >> we're still going with rob here. do you want to stick around? we've got another hour and a half to go here. >> look at rob. he's ready. >> i'm back already. >> less than 30 minutes left in
the trading session. here the down is down a whop 1g 2 points. is it time to play defense on wall street. mike santoli has a special report for us coming up. also ahead, lloyds of london sounding off. you heard steve liesman ask dennis lockhart about it moments ago. why a brexit, he said, could wreak havoc on his company's business. stay tuned. shopping experience. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. herthey work hard.ade, wow, that was random. random? no. it's all about understanding patterns.
looking back. fcc members voting. >> you know the old damage is a good defense and mike santoli says it may be time to play defense again in the market. mike joins us now to explain. >> the nfl stopped playing by those rules. but at the market i think is sending some shutting cues in the last five or ten days that maybe these defensive plays have taken the floor again. these could be one of these
subtle shifts after a big rally. but i think it's worth noting. it's those utilities and the staples and real estate investment trusts. basically the safe yield ones that have been the beneficiaries. by the way, down 1.93 to 1.74 now. so is this all kind of a growth scare? they're telling us that really the air is no longer behind it? i don't know. you're seeing it. you've seen it in recent days as well aztec. it definitely has a gut check and in financials as well. so i don't necessarily know there's a grand takeaway. i think they're craving reassurance that the u.s. growth picture is actually intact for some kind of a pickup second, third quarter. >> it reminds me of when we spoke of gunlach yesterday.
one of the places that had been left out of this rush into the space you're talking about to some extent is mortgage, real estate investment, trusts. >> exactly. they're classified as reits but they own those instead of buildings. >> let's hear what jeff had to say about that. >> the utilities have done incredibly well. they're great. this is a good entry important and the mortgage rate since the middle of 2003 have a negative rate of return. >> that trade is predicated on it. >> it's interesting, partially so. i don't know how to split a bearish take with gun lock.
when you pick a one-yield instrument over the other, others will look and say they don't deserve to trade at these valuations. >> it's upward of 7.9. why do you think it is they have shied away from mortgage rates. is it actually that they're skied because of what happened? >> they're a totally different one. they're not just about running a business. they're actually financial portfolios of different bonds. it's a yield curve play and so it's a little bit more of a sophisticated trade than just saying, look, i'm going to buy con ed and collect the dividends for the next ten years. >> look at the utilities. they're like the little engine that could. there's so much skepticism, but as he said and they were pointing out, he was the best sector. >> absolutely. people were saying the same about the consumer staple stocks. as long as we're valuing them based on relative yield, they
probably hold together despite what they look like. >> stocks are the new bonds. >> that's right. >> so they say. michael santoli. thank you. 20 seconds left on the trading session. not much volatility, but now that i think about it, it's the day before the jobs number. maybe they're just waiting for all of that, but we're also a half hour away from a lot of earnings. gopros coming up, and we'll tell you the key numbers to watch for in the adventure camera's support. it's a new warmup and whether britain should leave the european union. the head of lloyds of london is going to share his view on leaving the eu. next. you wouldn't take medicine without checking the side effects. hey honey.
- the light bulb, a bright idea if you use the right ones. led bulbs use 85% less energy and last a long time, saving you up to $100 over their lifetime. here's an idea: replace yours today. [light instrumental music] happy cinco de mayo, kelly. constellation brands ringing the "closing bell" and they brought with them a mar mariachi band. we're going to stop for just a second because you wouldn't be able to hear us otherwise. ♪
>> i'll speak a little louder. this is what i love about business television. we can be listening to a mariachi band where we talk about transportation. where else can you get this kind of entertainment. they reported disappointing earnings today. the company says it expects increasingly challenging market conditions in trans-pacific trade with underlying market rates and historic loads and overchronic capacity.
i one thor where rob reiner is, by the way. >> six weeks from now they eat vote whether to doctor w draw. brexit. they're grappling to figure out the possible new world order. among them, insurance giants lloyds of london. john nelson is the chairman of lloyds of london. he joins us now. i assume you do not have mariachi band playing over there. >> no. good afternoon to you. i must say i'm thinking of introducing a mariachi band into the room at lloyds of london. sounds like a good idea. >> i think that would be fine. all right, we're going to press on here even though i have no idea how we're going to hear you with this. you're against brexit. and we've been talking to a number of officials who are against the uk leaving the european union. what is your version of why you don't want to see that happen? >> well, lloyd's is the only insurance market in the world.
it's the global hub for specialist insurance and reinsurance. in fact, we are, by far, the biggest provider of specialists otherwise known as insurance lines in the united states. we have a big interest in the uk staying within the eu, really for three main reasons. one is that lloyd's can trade in the 27 member states with pa passporting rights as if we were one domestic market. that's extremely valuable. that's about 15% of our business. the second reason is we benefit from the bilateral trade agreements with they have which we trade underneath. and the third reason is that lloyd's being a totally global operation on rating in 200 countries, 90% of our capital comes from outside the united kingdom. now, one of the reasons we
attract capital into the lloyds market is because lloyds and london is part of the e unh it seems to be the most business-friendly part of the eu. if we left the eu, i don't say we would lose that capital, but we would lose one of the attractions. >> is it important enough to you that you would stay in the eu by moving your headquarters? >> no. we have contingency plans in place, but if we left, we would reconfigure some of the structures we have in europe to allow us to continue to trade we would have a situation where it would be more costly to operate. and equally, of course, in terms of dealing with third party countries, we would have to negotiate as much of it as we could. >> john, obviously all of that is something you'd have to deal
with as a business, but we also know you're one of the businesses who's been through so much. you specialize in risk to a certain degree. you guy have survived through so many tumultuous periods and british and world european history. is the argument about the fundamental gaumts of this or something else? >> the argument i'm talking about as a businessman is for the business and the economy, and there is no question for the uk, 44% of our exports, trading exports with the eu. if we leave this free market, this liberal market, it would undoubtedly have a negative impact on our economy. i think every sophisticated economist and world, others share that view. there's no doubt about that. there are other arguments which
i'm best qualified to talk about which are also exercising on people's minds, and one of those issues is regulation. and there is a feeling that the eu erects, regulates re s barri which makes it less competitive than it should be. having said that, i think the eu is on a path to simplify regulation. they understand we have to get more competitive, and for the uk being part of the eu, we will have the opportunity to influence that debate. >> all right. john nelson, chairman of lloyds of london. good to see you. thanks for joining us today, sir. >> thank you. >> helps toance the question when steve liesman spoke to atlanta fed president dennis lockhart who said i can't pre provide you the details. there's the details transport still down 86. the nasdaq down 8.
>> the earnings as well as the spanish music keep coming today. at the bell, big naples, gopro, wooin, squared. up next. what to expect from those three. up next. stay tuned. sts... or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain,
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welcome back. today is no different. we're joined by josh liptop coveri ing gopro and kate kelly joining us. that stock down nearly 407. nearly 80% over the past 12 months. fans are hard to come by. 30% of the company's stock is sold short and only 28% of analysts rate this one a buy. today the street is expected to see a loss of 60 scents on sales of $169 million thachlt would be a drop of more than 50% on the top of the line. gopro shipped 727,000 cameras in the quarter. on a call, will we hear any more about price cuts in the hero's session and will that help?
any update on the upcoming drone and what do they have plan for the new camera planned later this year. guys, back to you. >> josh, thaenk you much. >> kayla tauschetausche. what do you expect? >> that's supposed to be sales of square at $344,000. it's their loan business but more importantly what the company has to say about guidance. in the previous quarter the company said it would be in the black for 2016. will the company be able to affirm that? will they lower it? will they raise it? it's unclear. analysts at goldman sachs say they believe the current guidants is conservative but we'll see in a few minutes' time what the company plans on doing.
bill, kelly, back over to you. >> thank you, kay last. back at headquarters, indicate rogers. what are you hearing at wynn? >> there are nerve news of $998 million. the one thing to watch will be mac macau. the company did get a nice pop last month on its preliminary fm chal statements for q1 and announced new reports for macau in vegas. the good news for wynn moving forward is that on monday macau posted a drop of 9.5% in gambling revenue for april. that's the 23rd consecutive monthly decline, but it wasn't as bad as expected. back over to you guys. >> all right. thank you all. we will see you coming up at the top of the hour when all the earnings come out. we're coming back with more
mariachi music and bob pisani will be doing the mexican hat dance for us. >> verizon is holding a rally as nearly 40,000 are holding picket lines across the country. keep it right here. you're watching cnbc. first in business worldwide. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally.
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a little less than 90 seconds. a quick look at the dow. not much volatility with tomorrow's job numbers. as always, the market's hoping for 200,000 jobs. that will be at 8:30 eastern, but they're going out neutral. oil today. i don't buy for a second oil is higher because of the fire in alberta. as bad and as catastrophic as it is, there's so much oil around the country, whoo in the world is it going up? >> first off, i think the reason we came off the high is there were some reports that the tash sands, one of the companies said the production was coming back online. that happened at 1:00. that's where the drop occurred. one of the smaller tar sands company came out. i completely agree with your point. all the companies came out and said production is not coming down that much and i think that's going to be a major problem. i think that's why we're bumping
up against 45 the last few days. if we don't see any more signs that production is actually coming down, i agree with you. >> all right. we're going out literally to a neutral right now on the dow. have we mentioned the constellation grand. >> they're ringing the "closing bell." youtube at the nasdaq. stay tuned for a lot coming your way on the second hour of "closing bell" with kelly and company. see you tomorrow, kel. thank you, bill rngs and welcome to the "closing bell." i'm kelly evans. looks like they might have gone out on a positive. with the transports down significantly, we told you about that. the dow up nine points on the bell there. we'll see how it settles. it looks like the s&p couldn't quite join it down half a point to 2050, the nasdaq down to about 8.5 to 17. get set. it may not only be mariachi band
part 2 but a cinco de earnings. we have josh lipton, kayla tausche, and kate roberts. thank you. very with mike santoli along with cnbc contributor stephanie. hello, everybody. >> it's interesting. are we waiting for the payroll or what? >> it's been imbalanced. that's not a great thing. i don't think it tipped the scales one way or the other. it kind of sat there for a while. that's the year-to-date flat line 20678940 people are looking at maybe going to say this is more than a little pullback. i do say the market has taken on
a bit of a defensive tone. the treasury yield down to 1.74 or something like that on ten yoo ten-year. >> it's true. at the same time the dollar index, we're watching that. then oil was higher. it was a weird one. stephanie. >> it was a weird day, yes. as mike mentioned, it was a defensive tone right from the get-go when you have costco talking about their store sale brands. a big miss and kind of continuing get data points from them that sales in april were absolutely horrific and we don't know what's going because we got amazon with a 20% growth. >> is it possible that's thence? >> i think a lot of it is for sure. consumers are continuing be very choosey, right? they are going to las vegas apparently if you ask mgm. the airlines are booked solid.
so they're definitely being choosey on what they do, but the fact that they're not spending on apparel, on retail, they're not going to malls, it's disconcerting. >> it's possible. i remember when becky spoke with two ceo's out in omaha. on the one hand you had the benjamin morrisaing housing is strong and then yu thad oriental trading guy which is way more low end and he said things don't look as good. i wonder, welcome steve. is it possible it's a healthy thing happening that it's a generation housing investment cycle here? >> i don't know. i'm long on housing stocks. so i don't know. everyone keeps talking about millennials not wanting to live anywhere else than their parents' basement or city apartment. >> yechlt but it's funnier when you say parents' basement.
i do believe you're looking at these things at rock bottom price. i do believe they only have one way to go. they can move sideways. >> that's kind of what's happening. i remember people making big holes over the past couple of years and they sat here. >> exactly. they rattled along the bottom. we talk about this. when you see a stock not move lower on bad news, it's all right sort of in the price. i hate saying that because i don't believe it's ever really in the price but it appears they eesk taken the brunt of it so far. >> what do you think of it. >> i think the construction sector can operate independently than what the broad consumer is doing. it's like vulcan materials. that was at a new high one day this week so it's clear that people think there's some kind of a spending cycle.
i definitely feel like we're a third toward it. that's not stashl but it's not much of a comeback. >> right. where does it happen? now we look at the retail sales report. even if amazon broadly speaking people are oklahoma from spending money, what happens to a lot of the retail names? >> it's going to be interesting. they're so oust favor, they're so out of favor and they're so underowned. and so at some point you're going to want to reverse this like a nordstrom or a macy's. you've got to goat get through it. you have easy comparatives in the second half of this year and that should help. i think what you do now is stick toward the housing kinds of naples. whirlpool, those companies had very good results. you stick there and keep your eye on some of these other names that are a little more
sensitive. they've gotten picked up so far. >> good point. the earnings are crossing. kayla tausche has more. kayla? >> kelly, it looks like a clean beat. $379 million is an increase of 51% over the same quarter last year and that is a beat. interesting eps number. it's a loss of 29 cents per share. the thompson reuters estimate had been a loss of 9 cent share. there's about a $50 million legal charge. the company in a private settlement with a profess never the st. louis area that had some claims to the square technology. so that is eliminating one outstanding legal issue, but it is carrying a charge of 15 cents per share in the quarter. if you exclude that, it's a loss of 15 cents which would still appear to be a bottom line miss, but what perhaps is giving a boost to the stock in after
hours is the fact that the company is raising its guidants for the year. it's saying it's going to break even in the second quarter and it could be further in the black than previously disclosed for the full year up to $14 million on adjusted earnings in profit. that compares to between to 12 million. so still small numbers, but for so many not profitable, being able on an jauftd basis is important. shares up 6 1/2%. we're going to be talking exclusively to ceo jack dorsey. we'll talk about this quarter. a lot of other issues for this company and we'll see you in just a few. guys, back to you. >> kayla, thank you. those shares kept climbing higher as the people dug through the numbers. so what does it mean if square's able to get footing and flip the switch and become profitable. >> we don't talk about no one wants to leave their home. it hinges on those numbers doing
better. but obviously squares a lot better for the average retail person who's selling the goods out of their store. so for when you look at it is the stock better o vusly if you sear paying more to verifone and competitors, this is more money in their pocket. they're more apt to use it. it's a lot simpler process. it seems like pop-up places love it. >> and it's been very strong. the last couple of quarters. even though it's very competitive. you see this paper and plastic shift and you're seeing it from visa, from mastercard. certainly papal as well. the stock's up. >> it was losing its range here. >> we'll keep an eye on it.
they'll get that stock. kate rogers. >> that's rye. a nice beat on earnings. reporting $1.07. the street had been looking for it. $998 million. we were talking about macau earlier. they had been expecting them to be in the range of $613 million. they fell right in the middle of that line. for if first quarter, las vegas revenues. they had said between $384 million and $394 million for the first quarter. net revenues for vegas, they report third degree $89.4 million first quarter net revenues for vegas. now you can see the stock here is up by more than 3% in the after hours trade here. we'll get back to you with anything else. >> thank you, kate. what do you guys think? >> that account number is smack in the middle.
i do think that's at least a relief right now. that's the main thing. people are looking toward it in terms of win. >> plus it's up 29% year to date. so this has definitely kicked las vegas out of the sector. that's only up about 2% year to date and it is as mike had said, a proxy for china. so if you see aging numbers doing better, you're going to look at this. >> you had mentioned mjm too. >> yes. they're only 10%. so even the las vegas numbers have not been as bad. you expect them to lose share. but in that market it was pretty good. >> we'll look forward to that conference call. we look forward to any more coming out. we have an earnings activation with julia boorstin. how 'd they do, julia? >> they beat on both the top and bottom line as well as raising its revenue and earnings
guidance. adjusting 23 cents per share. this is versus estimates of just 12 cents. wall street analysts have been looking for just $813 million. so a significant beat on the top and bottom line. they raise guidance to be a hair above wall street estimates on both the top and bottom line. key factors driving the company's growth. revenues were at an all-time quarterly record. representing an ailtime quarterly record of 88% of it. the success there in digital. they give a sense of just how big these communities are playing these video games. both activism and blizzard claimed their largest in their history. activism showed active users. blizzard with 26 million active users up 23% year over year. >> thank you.
>> if you look at the digital outlay, that's what everyone wants to see. can they move k they transition to digital. look back at king. everyone said they paid $5.9 billion, but if you look at stock it's been a great purchase to lean in and transition and electronic arts was the other side of it. it's making up some ground when you saw it pop third degree% after hours. >> and also i want to show everybody what's happening with square. that was up 6.5% at last check. it's now negative. it goes to show you the loss was bigger than expected but they show a profitable guidance. >> yeah, they did. i do think it's all about, you know, what are they going to sab penetration and all the rest of it. i don't know what other, you know, below the headline numbers. >> let's check in with seema
mody. >> wall street was expecting a loss of 16 cents, so, again, 8-cent profit adjusted on the bottom line for yelp. revenue surpassing expectations at $159 million. the guidance for the second quarter also looked strong. q2 revenues between 167 and $171 million. that's q2 revenues. in terms of specific metric, jeremy stopperman, the co-founder of yelp and ceo said we had a great start to the year with local growth accelerating. we made a great mark in the first quarter. keep in mind it's a stock that has been in focus this week. on wednesday, david einhorn announcing a steak stake in the company basically saying yelp has had a convincing turnaround and if yelp can execute its current plan, it could double revenues by 2019.
you're looking at stock up by about 9%. kelly. >> what's yelp doing right? >> it's the game. it was at quite the stock price. >> are you talk about people using the yelp? i'm literally asking because i don't remember it's become the go-to spot. >> am i searching through the browser? >> when you said, what are they doing right, it has lost 80% of its value. so at this point it's got 12%, short interest. not enough to really goose it enough but people are taking flyers. the david einhorns in the stock,ite's good place to enter it. >> i think they expected a beat and expected low expectations for guidance and you look at some of the numbers, the reviews
are up 31% and the apps are up 32%. i mean this is real growth here. they certainly didn't go out of business to steve's point but the stock is down so much they're so conservative, i think. >> google tried to put it out of business, zagot. >> we'll see. there's still a lot. yelp measures are higher. get ready for "fast money." be sure to catch steve coming up at 5:00. they're talking to a journalist who has covered las vegas for over 30 years and he'll explain why you should buy casino stock if trump becomes president. that should be fun. gopro numbers are owl and jack dorsey on square results. he joins us.
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our mission is to build homes, community and hope. our homeowners are low-income families, so the ability for them to have lower energy cost is wonderful. we have been able to provide about 600 families with solar on their homes. that's over nine and a half million dollars of investment by pg&e, and that allows us to provide clean energy for everyone here. it's been a great partnership. together, we're building a better california. gopro earnings are out. josh lipton has more. >> reporting a loss, kelly, of 63 cents.
analysts say 60 cents. a bit worse on the bottom. revenue, clocking at $184 million. they had been looking for $169 billion. a beat there. they're reporting a revenue of $1.5 billion. in a statement gopro's ceo nick whitman saying it remains solid. he also says to delay our drone car machlt remember they put a self-imposed deadline. woodman saying they're dlag thachlt it should benefit from the holidays. on the call we're going hear a lot more. did the price cuts, the hero session. remember, they cut it twice. did it help move units and also more about this drone. when should we expect this launch and any updates we get about the new camera expected later this year. that starts around 5:00 p.m.
eastern. back to you. >> thank you, josh. joining us more on these earnings. ross gerber from gerber kawasaki. we're look for it. the sent meant has been pretty bad. why do you think this is a stock worth sticking with? >> i don't know about that. we have twitter, pandora, and yelp. they're buyout candidates. it would be a wonderful addition. beyond that, i don't have a lot of hope. >> just to be clear, your only hope for gopro is somebody buys it and changes the ceo? >> absolutely. how many missteps can you possibly have? you've lost $7 billion of market cap for people who bought that stock at higher prices and you're at all-time lows. look. it's a mess. >> max, what do you think about
gopro's prospects here? >> it's so great. it's a company that's going to have to learn what its product miss is and learn what it is. that's a little bit daunting. where i think there's upside potentially here is there's no doubt, no good amount of cash on book and there's a possibility of insurance squeeze because this is short and if you take away the 40% or 50% that's insiders institutions it mean as really small piece of good news could make a big splash. this looks like a product that's without its peak. so hard to be excited on the investment basis. possible catalytic event for trade.
>> what you do think? >> it doesn't seem like we'd be talking about this company if it wasn't such a phenomenon if it wasn't such a product itself and if it wasn't a $90,000 stock. >> they've got to get the product out the door. they'd have to spend a whole lot. i'm actually curious from one of you guys. what do you think? >> it's a horrible idea. they're competing. they already use gopro cameras. they've already banned drones and you have to get a license. the future is vr and they have a great v.r. solution and that's what they should be focused on. i think they should focus on what they talk about, which is building this brand around the videos and v.r.
>> breaking news. you know, from the picture you paint it's clear what gopro's challenges are. max wolfe and ross gerber. let's get to sue herera with breaking news. >> yes. it concerns herbalife. updating its recent filing to day and this concerns the ftc investigation into that company. the allegations were that it was operating a pyramid scheme. this is what they have to say. we've updated our disclosures to report that while there are a number of open issues, those discussions with the ftc have progressed to an advanced stage and the range of outcomes now include litigation or settlement. if a settlement is reached with the ftc, it would likely include injunctive and other leaf including monetary payment what our best estimate of being $200
million. they've updated saying they've progressed with the ftc. there are still some issues open and any remedy would include injunctive relief and a $200 million payment. that's their best estimate. the stock is up 12%. it could be it's viewing that as the skbii ibeginning of the clo >> that's what i was going to ask, guys is. that how this appears. ? go ahead. >> $200 million is not a crippling amount of money. if this is going to close up this line of inquiry, it would probably mean by what you can tell, it doesn't cripple the business model. it doesn't have such remedies or changes where you can say as bill ackman has made the case is at the very core of the business model is these practices that it believes it's not above board. >> i feel like we've been waiting for years for this. >> we literally have.
>> to get this behind the company, that in and of itself is a positive. you can understand the reaction to the shares. but i believe it's primary. whatever the reaction is, you don't know. it's tough to chase here. >> again, you don't know the chase here of how they may have to change things. maybe it's not going to be as good of business even as it's been. >> that's a good point. it could be a relief rally. up 13% of the news. shares of square were initially higher. but they have ginn back the gains. it's down about 1%. ceo jack dorsey is scaling down to break down the quarter and discuss the increasingly competitive payment space. now nobody likes to get older. will the company be able to deliver. that's later on the "closing bell." , the master of suspense and the macabre. i enjoy keeping people up at night. my analysis shows your stories are actually about human connection, even love. great storytelling needs drama and empathy.
welcome back. square out with its latest earnings. it was initially popping on numbers. for more on these results and the company's future kayla tausche. the ceo jack dorsey in an exclusive interview. kayla? >> thank you so much, kelly. thanks to jack dorsey for making time for the company's second aerks report. >> thank you. >> the stock initially soar and then it came back to earth potentially because the loss was bigger than expected. talk about the componentthat made up the loss that you reported this quarter. >> what loss are you speaking
to? >> the loss of 14 cents per share. the estimate was 9 cent per share. >> the loss was reported around litigation, which we just reached a biejd term sheet, which we're really happy to put behind us now. one-time charge. >> one-time charge. >> yeah. >> and it had been out there for years. >> yeah, yeah. >> the revenue number is quite higher than analysts had expected. you told us last quarter that revenues were going to lead you to profitability because you were selling so many devices, selling so much software. what's behind the revenue this quarter in. >> the core business is really strong. the core business and moving up markets of medium sized businesses has always been our sweet spot. we're seeing a lot more growth in the mid market and up market opportunity and we have this fantastic new reader as well that allows any one of our sellers to accept apple pay,
samsung pay and android pay. as the world knows we're moved toward chip cards and we have the fastest implementation of it out there. >> when you say up market, is that code for larger merchants? >> larger merchants, yeah. we've watched a lot of our searls grow from one location to five locations to 15 locations to 20 and blue bottle is one of those. they started in japan. we support their business throughout. that's been great because that allows us to focus on one thing which the if we build tools to help our sellers grow, we grow as a company and our revenue grows. >> you took guidance up for the year and said you'd break even. that assumes costs don't go up dramatically. that there aren't any other one-time charges. what's your line of sight into the rest of the year? >> it's really good.
we've always had a sense of the business, where it goes and what the dials are. so i feel really confident about our trajectory and our ability to predict where the business is going. >> people are somewhat nervous. have you gotten commitments from directors or other management to hold onto those shares. >> yeah. we have conversations and we're really confident in our investors and their confidence in the business. you know, this is another one-time event that err single company goes through and what we're focused on is making sure we continue to focus on what we do, which is build our tools so that people continue to value it and they grow as well. >> you are changing square capital from cash advances to bank loans. >> it's changed. ite e awesome. >> does that have to do with regulation? >> no. it's actually something that sellers when they interface, they think it's a loan.
it simplifies the message a lot. it allows them to take multiple times in a much easier way. it frees up the product and the service and what that means is, you know, they can take a loan instantly and suddenly they get the money in their bank account and they can use it to hire new employees, open a new location, buy a new salon chair, all of which helps them grow the business. again, if we help them grow their business, our business grows as well. >> donald trump has become the presumptive nominee. >> i was not expecting this. >> it was said recently silicon valley created donald trump. what do you say of that? >> i can't speak of that. i think donald trump created donald trump. >> the fact that social int interface didn't exist and social media in 2004, you don't think that helped amplify him? >> you know, people want to have
conversations about it. they want to talk it and see it. we're just showing what is actually happening in the world and what people think about it. >> finally before we go, we're watching the stodge move down about 2% after hours buchl your company beat on the topline. raised guidancguidance. twitter missed. how do you keep these companies from diverging. how do you keep the story a positive one? >> we focus on what matters. again, we want to make sure they're valuing something every day and we're driving around building a daily utility that everyone can benefit from and that's what we can control. we're showing it. we're focused we have it prioritized and we know what comes next and we know what to do and we know whoo people love and they're making it better. >> we know you have a conference call, but jack dorsey, the ceo
and chair of square. >> thank you much. we have breaking news on goldman sachlkts seema mody, what's happening? >> goldman sachs is cutting more jobs in its securities business. according to the report, goldman sachs, the cuts will bring fixed income reduction cut this year to about 10%. this comes after goldman sachs earlier this year filed papework with the new york department of labor laid off employs and the job cuts continue. again, goldman sachs cutting more jobs in its security business. the stock not moving right now. down just fractionally after hours. we'll keep an eye on the stock bill in the coming minutes. back to you, kelly. >> thank you very much. time for a cnbc update. >> president obama has commuted the prison terms of 58 individuals, nearly a third of whom were spending live sentences. he's now commuted 306 people
include 2g 10 who were serving life terms. house speaker paum ryan said he's not ready to support or endouse republican nominee donald trump. it's his first public comment since his primary rivals dropped out of the presidential race. trump himself name as hedge chairman. steven ma nuchen said in a statement he will help him create a world class finance organization to fuel his campaign. he said his tower mareks the best taco bowls and adding, quote, i love hispanics," yikes. back to you. >> i love the taco bowl. >> apparently they make them at
the trump tower grill. >> meet you there. >> they're reporting better than reported rev now. but is the bounceback for real. one of the early analysts who makes a bearish call on alibaba joins us after this. i'm vern, the orange money retirement rabbit from voya. vern from voya? yep, vern from voya. why are you orange? that's a little weird. really? that's the weird part in this scenario? look, orange money represents the money you put away for retirement. save a little here and there, and over time, your money could multiply. see? ah, ok. so, why are you orange? funny. see how voya can help you get organized at voya.com.
welcome back. here's quick check for you. now, notably square was up 6.5% but its now down 3.6%. wynn resorts slightly positive. its yield up 7%. alibaba back on its better than expected earnings but jim chanos of conaco associates did tell our scott wapner yesterday he shorted the stock. >> we are shorted. we shorted it for sound reasons. we questions on their metrics and cash flow and most importantly the biggest part of their business which is the fulfillment side of the business, delivering you the package, is unconsolidated on the financial statements and we just don't see how profitable or unprofitable that business is. i suspect it's unprofitable and they're funding it from the cash
flow. so therefore there's no real free cash flows at alibaba. >> joining us, someone else has been critical of ali ba be. thank you for joining us here post 9. >> thanks, kelly. >> you gave this presentation a couple of weeks ago, maybe a month ago. there's many plans to your argument but the one that's stayed with me is when you talk about what alibaba says is the average amount they're spending on their website, which is over a thousand dollars, is that right? >> yeah. it comes up to a third. now, how likely is that that you're going to spend a third of the money you're going to take home. there's just so many numbers. i like what jim chanos said. look at the financial. in their report today they said they're losing money. they raised money a few days o
ago. >> so you've been bearish. there's a lot at stake here. what parts of the argument do you feel more confident about. is there a difference today about how you feel about the business? >> i kind of wish. i'd like to be able to believe in the dream but i believe every time they come out with the report it seems like, come on, guys. 39% revenue growthful of that 78% was growth in mobile revenue and yet china mobile, they have 4% growth. how does that happen? >> you know, obviously the core metric, gross merchandise volume is as defined. it's hard to know what's in there. ebay uses gross merchandise. so this isn't necessarily unique to alibaba but why do you think it's not unique a number they
should -- >> it doesn't pass the smell test but even beyond, that for example, our company interview this community of companies in china that what would you call it in english like brushing companies. they claim among them over 80,000 employees or, you know, free layncers, and these people's job day in, day out is to create fake orders on alibaba and the e commerce sites. it gives you an idea of the dimensions they're looking at. >> the twitter version may be one of the four. it's maxed out. it's terrible inis vester of shareholders money, it's like capital to generate its own and the chinese e commerce story is unlikely. really. because it's seen as a beacon.
>> it's true but the logistics in china -- i have been there for over 25 years. the logistics have not improved all that muchb. the roads have improved but the logistics have not. >> what do you think the real growth rate is if you're suspicious of it being over 70%? >> i don't know. but the -- the problem with the numbers is that you just cannot find a vendor in china. i defy you to find a company in china that sells commercial products that's other $10 million in revenue that's growing at over 39%. if nobody is growing, why is alibaba growing. they claim they're 9% of commerce now. >> they don't seem to match up. anne, we'll follow it. thank you for laying out your case. that's anne stephenson-yang from j. capital research.
the clash between unions and the teleco jientd and what it means for the work force next. and also a drug that regrows hair, a medicine that heals arthrit arthritis. sound too good to be true? coming up next we'll hear from a billionaire who claims to reverse the signs of aging. you're watching cnbc, first in business worldwide. ♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling.
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generally. it's now valued at $12 billion and landed the cover of ""forbes"" magazine. this now lead manager to wonder if such a thing is too good to be true. joining us now is its founder and ceo. thank you for joining us. >> thank you for having me. >> i just want to start with what you currently do. if i go to your company, can i buy something? >> not yet. we're developing drugs that treat a broad range of degenerative diseases. currently we have five programs in the clinic in human studies with a dozen or sore programs in animal studies that we're going push into the clinic over the next couple of years where in
each skas damaged tissues have been pushed back to a healthy approach. what we're learning is that each and every one of our drugs is potentially modifying meaning that the treatment provides effectively a cure for the patient as opposed to just symptom relief. >> right. which is great except i don't understand how you can, you know -- we've been burned here in the media. we hear these claims about how you're going to change the health care world and other ceos who have appeared on magazine covers. $12 billion. who's investing in you? who are your investors here? >> it's a number of family offices and sovereign funds and high executive lives. >> have you gone to capital
funds and had any conversations there? >> no, we have not. we've been doing this. only recently have we been sharing it. so far all our studies, all our programs are making a nice and steady progress, but when it comes to investors, we have chosen not to go to the typical early stage biotech investor, you know, primarily because of the long-term goals. >> i was just going to say, we did go to some experienced drug industry, backers of these kinds of companies who are reminded again after what happened. there are no short cuts to drug
discovery and development and they said there were too many red plagues they saw when they read through what you're doing. how confident are you in what they're working on, doesn't ma investors say. it doesn't matter what we say. ultimately, we're going to supplement our data packages to the fda. and whether they approve it or not is up to them. at the same time, of course, our second set of audience is the medical community. we have to convince them regarding the strength of our date a and our programs such that they are convinced that our treatments are supere wror to the existing treatments. >> listen, $12 billion is putting the cart before the horse perhaps to some extent. we'll be watching with great interest, osman. thanks for joining us. >> thank you. >> that's osman kibar. strikers and shareholders are facing off at verizon's
annual meeting. we'll head live to the telecom's meeting in new mexico when we come back. here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey?
welcome back. gopro is giving back most ofs gains following its earnings reports. let's get to josh lipton with more on what is going on. josh? >> another important data point we want to bring to you. go pro say it shipped 7,001 units. analysts had modeled 727,000 that is a miss there. that's a year over a year drop of about 48%. gopro is going to have the conference call in a few minutes at the top of the hour. well expect the ceo to provide more insight and color than miss.
we'll be on the call and bringing you the headlines. kelly, back to you. >> all right. thank you, josh. by the way, the shares of less than 1% now. we talked earlier, and we had our guests reiterating the challenges they face. when it was up 8%, you could think maybe a little more positively about their prospects. >> yeah, you could think a little bit more positively about the idea that finally all the bad news is reflected. because it's a holiday story, it reminds me of fit bit. now what am i doing for the next two quarters that it is going to be okay. >> verizon is holding its annual shareholder meeting. nearly 40,000 of its workers remain on strike. jane wells is in albuquerque, new mexico at that meeting with more on this one. hi, jane. >> hey, kelly. so why is the meeting in albuquerque? well, they have a huge call center here. and while things were relatively quiet inside the meeting, very noisy outside. we have video. around a dozen protesters were cited by police. this is part of a nationwide series of protests organized by the union representing the
almost 40,000 east coast verizon workers. they've been on strike since april 13th. the main sticking point is whether call center jobs will be outsourced overseas. inside the meeting the board was re-elected. their compensation was approved. and union-backed shareholder proposals are included including one which would have forced executives to hold on to retirement 75% of their shares. >> it's a new standard that is emerging in corporate governance to make sure executives have skin in the game so that they don't take excessive risks to make sure they own shares in the company. many companies have started to adopt this as a best practice. >> well, it lost handily as did a proposal for a golden parachute severance packages. even supporters included average shareholder like bill donald who actually likes management. >> it's hideous what we pay these people. but, you know, that's wall street. we seem to have to pay them and
have good parachutes to keep them. but that's the way it goes. >> well, finally, i did talk to ceo lowell mcadam after the camera. i asked specifically about buying yahoo! but said frankly there is not much to say. they need to get more data. they need to do more due diligence. one last thing, kelly. the company is claiming of the 39,000 striking employees, over 1300 have crossed picket lines to go back to work. back to you. >> as that strike draws out. thank you, our jane wells. we're minutes away from the go pro and square conference calls. what to listen for when we come right back. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
welcome back. look at square, now down 12%. if you had tuned in when the results first hit the tape, that was 18 percentage points ago. it was up about 6.5% initially. came back, guys, between now and then, obviously people had more time to go through the numbers. they also heard from jack dorsey, speaking with kayla tausche earlier. >> it was very big picture stuff, what think think the uptake is going to be okay. in terms of the quarter and the next quarter, we didn't hear anything that is going to change any minds. >> yeah, very disappointing. i don't know what he is saying. but obviously it's going the wrong way. but the expectations were higher
because it rallied 17% from last quarter. but that's not a good sign. >> people will be definitely looking for more context on the calls that said, we'll let everybody turn their attention to that. now stephanie link, mike santoli, thanks for joining us. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market silent overlooking new york city's times square, i'm melissa lee. traders are tim seymour, steven grasso, and guy adami. if donald trump becomes president of the united states, we'll tell you what the ceos are saying. plus, which companies has a product to make that sold for a dollar and has a billion customers? one of the hottest trades right now. square trading lower, but it's what ceo jack dorsey just said to kayla tausche about twitter. the action today wasn't in stocks, it was in bonds and the