tv Closing Bell CNBC May 10, 2016 3:00pm-5:01pm EDT
he spent the last 30 years of his life devote method this subject matter because it was a way for him to continually explore how light and surface change due to the weather. you look at it and it's clearly impressionist. >> brooke, thank you very much. brooke lampley. >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell." i'm kelly with the new york stock exchange. >> and i'll bill griffeth. stocks have rallied on wall street as the dow flirts with its best day in two months. the s&p and nasdaq are going for their third straight gain, as a matter of fact. big jump in the price of oil over fears of supply,
disruptions from those wild fires in canada. we've known that for a while. helping energy and industrial stocks move sharply higher as well today. >> now, wells fargo is unveiling a new loan offering to get money to small businesses much faster. the chief operating officer tim sloane will join us in an exclusive interview. he ee going to talk to us about new initiative and what's been happening all across this space. >> we have a lot to talk with mr. sloane about. amazon, maybe you've heard they've targeting barnes & noble and walmart and others. now it's youtube. the new video strategy coming up. >> and disney. espn, theme parks, movies, and succe succession plans will be starting it. dominic chu is tracking
things for us, y, dom. >> i asked a number of traders if they could peg one exact item or two on why we got the rally. no one can sate's one definitive thing. i want to show you what some of the guys are talking about here. it's a little draw mat imhere because we're talking about dow components, the widely held big cam names. i want to take you to post five. these guys right here, they're highlighted in yellow. you've got mcdonald's. johnson and johnson and home depot. they all at one point tort hit record intraday levels. amidst the market. all of these stocks have hit record heise. there are growth concerns. but still those three stocks make some heise. one other thing i wanted to point out about the stocks they could be yield place.
that could be a big thesis for them. if you take a look at some of these yielding between home depot. johnson and johnson and what we have, you have 2%. in the case of mcdonald's and jops and johnson. to put it in percentage they look at what happens with the 10-year treasury note kweeld. stocks like this. investsers have seen perhaps a little bit of demand because people are looking for place to park their money. but a big theme has been this kind of quiet rally. nobody's talking a lot about it. nobody can pin what it is exactly, but still a 200 day and we're seeing some signs of strength. it's what we'll be watching as we watch the "closing bell." back over to you guys. >> very good. >> we like. i wish i had thought of that. >> thank you. just briefly on the pound of
goldman. i want to put out a call for the ten year. this year yeelgd 4%? >> 2.4% that that's a very different story. we'll double-check. >> you're right. 2.4%. now that you think about it. it sounds. >> 2.4% sounds like hope. 1.4 would be a little worrisome. >> we'll talk amongst ourselves. >> now to the retail. gap, that's ahead of macy's earning report tomorrow morning. let's get to courtney reagan with more now. hi, there, court. >> hi, there, kelly. i talked about the wall of worry specifically yesterday. and then just in 24 hours the course of nervous ps has seemingly gotten a little louder. it's a big week. macy's is first. analysts haven't been optimistic for a while. but in the last week or even two
days. the sentiments have gotten decidedly worst. the come parable sales will fall 6% which would be the wift performance since the financial crisis if that happens. they lowered estimates with what he called silg can't cuts to macy's and nordstrom's and then he said he's worrying those reductions rurnlt deep enough. there's some debate. but a few signs point to a strong april. higher promotional levels still not persuading shoppers to buy. there's the continues pressure and fashion and am zop. cold weather hampering sales of spring apparel and increasing gas prices up about 50 cents since mid-february. less than a month ago when i interviewed the ceo, he reit rate guidance for negative sales until the fourth quarter and said he sees the trend of
consumer spending on cars and homes continuing and they by the fourth quarter spending will continue to his category. that's possibly six more months of negative sales if that's what he's still projecting. >> how much of this is just apparel for each of it. you made a point and also the comments out of jcpenney where they're saying they're seeing a reintroduction of appliances off to a great start. >> exactly. i think apparel has been a weak spot for a while but not even all apparel. think of some of the strength we've seen. even though amazon doesn't break out categories, there are some nults and consultants who look deep at what they can gather from surveys and more folks are buying apparel from amazon. so, again, those are just more knocks to those traditional apparel players which could be troubling and about the point to jcpenney, they're putting them
into 500 stores. consumers pay more for durbling big ticket goods that perhaps they've put off for some time and now they have no choice. when your washing machine breaks, what do you do, you have to buy another one. >> right. so i hear. >> thank you. >> target chairman and ceo brian cornell will be on "squawk box" tomorrow morning. make sure you don't miss it. >> boy, a lot going on with retail these days. >> let's get to our "closing bell" for a tuesday. joining us kimberly foss. we have stephen guilfoyle, we call him sarge from post 9 and brian battle joining us. welcome to all of you, sarge, what's going on. a 192-point rally today. where did that come from? >> you know, after the 2074 level, we hit it twice, we e came off it twice. when we finally cracked it, it acted in support once. that was our pivot point this
morning. after that it was technical. we peaked out at 2082. i know we came within pennies of it. that was our next technical level. you can see a lot of the electronic trading. they're pinging back and forth between the levels they're preset. >> kimberly, you're part of this rotation into the kind cheaper names, is that right? >> yeah. we like the value sector. it tends to reward our sector. about 200, 300 basis points for the earnings distress company. value adds value to our portfolios. that's one of the biggest holdings in the portfolio. >> how do you define it? what are we talking about here, kimberly? >> from me? >> yeah. >> yep. >> their book -- their book to market ratio, basically the book
asset, the accounting for the book value is higher than what the market is selling for. so there's an intrinsic value there. so when we have mutual funds or stocks that have value, there's intwins sieve value. so that's why we overrotate into those sectors to add significant value to the clients' portfolios. >> brian, we've got important offerings this week including the 10s and 30s. what kind of demand do you expect and what does that say about expectations for the fed going down the road? >> that's right. we had a three-year auction. that went great. the one to watch is the ten her year auction. that sets rates along the gloechblt ten euro is important because we're right now at about a 3 1/2, 3 5/8 retail level. that's near an all-time low. we're having a lot of distress and a lot of discussion about what's the fed going to do.
the fed has been anti-data-dependent. they should raise rates because unemployment is low and it looks like there's growth. if you by policy, the fed should have raised rates because we've had such low rates and extraordinary monetary policy. we have to give ourselves room. we're going to be wanting to auctions. what was it that drove the market? that's what didn't happen. it's good news. >> we also had some head lines out of japan talk about pushing the yen lower and there were comments from bill dudley about the dollar. how are those kind of -- you know, playing into what we're seeing today? >> you know, central banking, of course, is key to this. what he said is pretty much right on. the central bank missed their mark, i guess, three or four years ago when they should have
normalized. if we were in a normal environmental right now, most likely they'd be talking about easing, not raising rates. it's been rather poor. the market is going up quite simply because we believe that they have to be dovish at this point. if you get me started. i don't know if you want to go there. >> what do you reach, sarge? >> i believe their mission right now is play nice in the sand box. so what we see is we see the hawks. we saw them last week late when they were trading around 92, 93. tla'll send doves out. >> that's right. do you think they're going to raise rates and are you positions yourself accordingly or not? >> no. i don't know if they're going to raise or not.
what, there's a 5% chance they may raise. but if you look and drill down on the jobs numbers, you're looking at real wages going. think sometimes they're discounting the fact that they're not going to raise and so i think you need to be proactive. i think they're going to raise at one point. that being said, i think investors need to position themselves so they're going to profit if they raise or don't. so for us, too, we're adding into as the volatility is in the market we're adding into the real estate sector and the utility. they want to get paid for when they're holding the assets and these have 3% to 4% differ accidents. plus you've got that. the bridge sectors go up. >> thanks, everybody. we've got to to leave it there. stephen guilfoyle.
kimberly faust kicking us off as we look at the market. a little more than 45 minutes to go today. the s&p's up 22. look. gains are pretty similar across all three averages. the nasdaq up 1.1%. >> the volume is not all that heavy but the up volume over the down volume is very convincing. 4-5-1 right now. so a lot of up stocks compared to down stocks today. wells fargo making a new push to take small business lending to the next level. the bank's lending tim sloane, of course, he'll join us to talk about that initiative next. also ahead, disney reporting its earnings after the bell. we'll tell you what the street is looking for and we'll break down the entertainment giants results when we hit the tape. you're watching cnbc first in business wide. >> toy boat, toy boat.
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welcome back. it's a pretty strong session on wall street. let's take a check of oil, again, looking at that relationship here. the correlation between oil and the markets and the dollar, of course, the dollar's up a little bit today, but, again, we're seeing a rally across wti and brent crude. just under $45 a barrel. >> even that, transports are also strong. >> they're up 91 points. look that. >> we have a couple of other movers to tell you about, solarcity plummeting. it cut its guidguidance. a solar support policy pullback in nevada and a january price increase on retal systems.
meanwhile international flavors and fragrances are higher on an earnings beat. the company makes flavorers and fragrances from cosmetics and detergents to owe getter and ice kriek. right now we have a news alert. what's going on? >> walmart and visa in a legal battle. dow jones reporting walmart is suing visa. it's not allowing it to require that its clients use a pin when completing a transaction with a chip-enabled debit card. walmart says visa also allows the clients to use a signature to complete one of these transactions, again w a chip-enabled debit card. why is this an issue for walmart. first of all, it has to pay visa more for these signature transactions and second after
all walmart says it's far more secure than one completed using a signature. there's a greater chance of fraud. so once again walmart is suing visa over this issue. visa declined to comment. kelly, back to you. >> all right. mary, thank you. wells fargo, meantime, announcing a new plan to get small businesses loans the very next day they apply for them. the new initiative is called fast flex. they hope it allows them to serve more than 28 banks. >> joining us with more on that in an exclusive interview, we welcome back tim sloane, who's president and chief operating officer at wells fargo. tim, always good to see you. thanks for joining us. >> good to see you, bill. hi, kelly. >> welcome. >> this is part of an initiative you guys set up two years ago to put together a $100 billion loan portfolio. you're at $40 billion now. is sth a new initiative or a
jump start? clarify that for us. >> sure. so you're right bill two. years ago we set up a five-year commitment to small business. we're $40 billion into that commitment. smalls by is a very important part of our business model. it's the life blood of the economy in the u.s. so the fast flex small loan protect is just that. we're going to provide more convenience to our customers by offering them the opportunity to apply online. get an answer very quickly, and have the money in their account the next day. >> it's interesting that this happens the same day lending clubs had some well publicized struggles and it caps off a couple of months when a lot of these lending platforms are struggling with their fundamental business models. so, you know, how, tim, do you guys blal offering capital basically overnight.
>> one of the things that we were very focused on in developing this product is using our own customer data developing an promote algorithm, testing that over the last nine months to make sure that we're making good credit decisions and we're very comfortable with the product and with our credit decision model. >> but i mean underlying kelly's question is this trend toward what's being called fintech, financial technology out there that's making in some cases banking much easier, much, much easier for the customer, whether it's for payments or loans or whatever. is this a response to that? are you just -- are you guys trying to keep up with the trends in technology right now?
>> actually i would argue that many of the fintech firms are trying to keep up with wells fargo. when you think about technology, it's a fundamental part of our business. what we try to do every day is deliver technology in the right way to our customers. we do that to consumer, small businesses, middle market customers as well as corporate commerce all day long. we spend billions of dollars each year on technology. what's exciting thb product is we develop this ourselves. >> also think about the difference between what wells fargo can offer and your big competitors too. they're trying to figure out how to try to crack the code here. is the fact that you can keep -- you can afford to basically make the loans yourself, hold them on your blass sheet. you don't have to worry about matching a barrower with an investor, it's fufy that it's
reminiscent of what got people into trouble. >> there are similarities for sure. there's no question that one of the advantages we have at wells fargo is we've got $1.3 trillion worth of deposits and we're in the business of taking those. not only are we the largest snal lender but the largest lender in the country. it's a very important part of our business model. our low cost deposits create a competitive advantage for us relative to many of our other banking competitors, the traditional models as well as some of the other lenders. >> it will be interesting too. this is for existing customers for now that helps aid you in trying to assess the credit worthy is. there's a lot of different things happening that change the environment. i want to mention what anthony
jenkins at barclays just said. he left with a huge retail presence in the uk and says as he looks at his next venture that large banks will venture as they seek, leave behind a zombie core and one in which he thinks there evening going to be many, many more branches closed going forward schl that true for you guys in the economics of the business and where this is headed? >> well, a lot of folks inside and outside the industry have been guessing and forecasting that stores, banging locations. branches, everything calls them something a little different are going to become obsolete, but the problem is they've been saying that for decades, we believe customers are going to decide how they want to bank with us. that's why we need to make sure we're providing them our banking products the way they want to get them. sometimes they go into the
store. sometimes they're on the line. sometimes it's mobile. but our customers get to decide. we feel very comfortable that our business model is being responsible for our customers so we can provide our products, when, where, and how they wanted to use them and it's just a great example of that. >> hey, tim, before we let you go, remind me again t day that jom stump is retiring and you're taking over as ceo, when is that again? >> you know what? i've got a great new job as president and chief operating officer. this is a great company. it's the board's decision and i'm sure they'll make a good one. >> well put. thanks, tim, nice to see you again. >> nice to see both of you. thank you for your time. >> you bet. tim sloane, the chief operating officer. meantime jamie dimon will be on tomorrow morning.
always fun. >> 35 minutes left in the trading session. the market continues to gradually move higher. the dow up 208 points right now. the s&p up 1.16% and the nasdaq up 53 points right now. >> and we've already talked about amazon going after the retail space. now, watch out. youtube. amazon is launching a new video service. >> up next, your money, your vote. john harwood will tell us what donald trump, hillary clinton and bernie sanders have riding on the nebraska and west virginia primaries which are under way today. stay tuned.
welcome back. voters hitting the polls in nebraska and west virginia primaries today. our john harwood has a look at what we should be looking for. hi, john. >> hi, kel. the thrill is mostly gone from the primary campaigns but there are contests today including a contest in nebraska where donald trump is running even though he doesn't have any active candidates left. most of the attention is on the democratic contest in west virginia where polling shows
bernie sanders leading hillary clinton. now, republicans are most interested in the upcoming meetings between donald trump and republican congressional leaders. house speaker paul ryan hasn't endorsed him yet. senate majority leader mitch mcconnell has and one said the talk of civil war should calm down. >> it seems to me that, you know, the campaign is evolvie i in kind of a little different way. what i've been saying to people who, you know, so quickly say negative things is let's chill. >> now one job that can't wait is fund-raising. republicans and democrats spent more than $1 billion. hpt has spent $180 million. but donald trump who has financed mostly his own campaign has raised only 12 million yrs. he and the parties are talking about ramping up together, guys. >> i don't know if you've seen it but they're releasing this
extensive interview they did with paul ryan where he talks about we cannot pretend the gop is united. we need to unify and we need to convince young voters. he's not coming out and endorsing trump per se but he's trying to bring the party together at this point. paul ryan may run for president himself one day but he believes in it. he's not comfortable with some of the rhetoric trump has used hchl's going to have to calculate not only what's best for him but for his members. they've got a 30-seat edge. if trump run basd campaign, that edge could be in jeopardy and he's got to be careful and figure out how to lead his party at this point. >> all right.
our chief washington correspondent john harwood. thanks, john. see you later. time now for a cnbc update with sue herera. hi, sue. >> hi, guys. here's what happening this hour. fierce fighting between iraqis and militants taking place in northeast iraq. iraqi soldiers fighting on terrorists' positions in a local village. u.s. transportation security anthony fox seriously considering shutting down the washington subway last week. a woman led police on a wild car chase near cincinnati all captured by police cameras. the video shows her fan running through yards to get away before crossing into oncoming traffic, narrowly missing a police car, she also had a child in the van with her. and bud wiser is getting patriotic.
it's replacing budweiser with america on the front of its 12-ounce cans and bottles throughout the election in november and it will modify its label including phrasing and passages from the pledge of allegiance. that's the cnbc news update at this hour. back to you, guys. >> my friendses anticipating this are not asking for a bud. they're asking for an am. >> sounds like an amstel, that's the problem. >> look at you, kel. you know your suds. >> i do. i have not seen it. but i am aware. it's smashing success. thank you, sue. >> thanks, sue. heading to the last half hour of trade today, a pretty good rally if you're just joining us. the dow up 201 pointss. nasdaq and s&p also healthy 1%-plus gains. we have a leading trader tells us what he's watching in the close. stay tuned. >> after the bell, disney and
the rally showing the s&p 500. virtually all stocks are higher today, and you saw kohl's was the big loser. a pretty good gain across the board, all sectors. >> there's been plenty of good news. let's stay with what's working right now. i'm joined by mark newton of newton advisers. you like the way this one's setting up. hi, mark. >> technologies are important. they're starting to show signs of making a real comeback. the biggest percentage of the s&p. it's an important sector. you see technology got up to former highs. it stalled out. now we're starting to show signs of stabilizing. now you have apple, seagate, western digital, all down 13% to 15%. we've corrected an exact 50% of the prior low to high. that's important.
we actually moved to multi-day heise. the nasdaq and europe started this off. i think it's important given it's such a large sector. >> do you think it has legs? if we look back at the chart, it plateaued here. i mean what takes us out of this whole range? >> at least near term it is important. technology has been one of the strongest sectors. none of the others have gotten back to nother highs. so i'm encouraged to see them start to stabilize and move higher given they're two good laggards. so i think it's good. >> we'll keep an eye on it. thank you so much. the rally continues. the dow up 202 points. people used to worry that google was trying to take over the world. now amazon may be giving google competition in its latest business skpachlks we'll tell you what that's about coming up next and despite rolling to the
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welcome back. amazon taking on a new rival. >> so will this make a dent in youtube's business? joining us, gene munster, long time senior alt at piperafterer. is there anywhere jeff bezos won't try at amazon? >> no. he's going to try everything and he's going to break down barriers. they're basically making it so any amateur can have it that was traditionally reserved for larger companies. so i think another greater sampy of him.
>> how long is it going to take to get people on youtube? >> i think they're going after a slightly different audience. youtube was great at use jern rated content back in the day and user generation doesn't happen as much any more on youtube. it's more professional but q educational. quick snippets. what this video platform amazon is going to go after, more professional, more netflix content. over time they'll become more competitive because we're seeing more premium content on youtube but probably for the next several years they're different. >> we were talking about this in our production meeting today. can probably counsel on one hand the number of missteps that jeff bezos has had through the years and mainly it's been through the
hardware side whereas on the other size, they e've pretty mu batted a thousand, right? >> i think the biggest misstep was the fire phone. they've knocked it out of the park. it's a great example of them continuing to find other ways. you could be hosting this stuff on ews, so they really hook you in with the freebies and get you to start to spend more on amazon. >> and they still have the naysayers and the concept techs, you know. jeff gun lack just told kelly the other day he would invest if they could achieve a 2% profit margin out there. what do you say. would you buy it?
>> i would. eventually it's going to be 50% or 70th. if you were a private equity company, you'd never invest in an e-commerce company because at the end of the day, there ee too much infrastructure impore to replicate. obviously they have the aws piece too. i think to look at the valuation or operating margin on this is just missing the point. there's a bigger theme going on and amazon's got a pull position. >> all right. and today bernstein slapping that $1,000 price tag on amazon. people love the story. thank use, gene. >> thanks. >> 15 minutes left as the market is setting highs for the day. the dow up 216 points right now. the s&p up 24. look that. everybody's up. >> some will regular highly contested bidding involving me and bill last november. time's running out. we've sweetened it by adding
cash into the equation. >> we're getting close to that as well as for the cherry auction. we're up to -- we're at dow levels right now. >> they'll not try to get the dow to rally. >> we did manage to get the total well above the dow today, 24,000 and counting. love to see the number get so high. the lulu and leo fund is a phenomenal cause. it's one that's very close to our hearts and it will be interesting to see what they do with the fund. >> the final bidding. you saw it there. the final bid was $37,750, the winning bidder. you'll meet him. maybe he'll tell us how far he might have gone otherwise coming up. ♪
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domestic parks as well as consumer product fwus biggest focus will be on espn. how much advertising and new revenue from digital distribution and skinny bundles can outweigh subscriber declines. we'll be back with those numbers from disney when they cross at 4:15 eastern. bill? >> all right, julia. thank you. we look forward to that very much. back in november let's all remember we participated in an online clarity cause that's near and dear to our hearts here at cnbc. the lulu and leo fund started by our former colleague kevin krimm. >> bill and i offered to meet for drinks in order to raise funs for the charity and as the bids starting ramping up, we stepdown it up. we started adding sweetens.
art cash. a meet and greet on set. >> so today's payday. the winner joins us now at post 9. he's chris gecko. he donated $37,750. we're eternally grateful and he was able to bring a guest and that was mr. christopher mangum. you didn't know up till now how much he donated. >> no. it was very generous. >> it was very generous. tell us how you made the last bid. >> i was on a flight coming back from london and stopped at my local watering hole, flipped over my laptop, tured my my-fi on and started bidding. i assuming it was ebay. i kept staying all night in a
bar trying to get this. at some point it actually becomes a lot of money. it worked owl well. >> how long have you been watching bill griffeth? >> from his old financial days. >> we go way back. >> a big fan. >> and you were a broker at one time. >> yes. that was my first job out of college. >> then you went into the software business. started your own business. now you're semiretired here, right? >> yes. i basically help start-up companies now. it's a lot more fun. i figure with all the experience i had over the last 15 years, some good, some bad, at least i can make it where hopefully it's a little less painful on someone else. >> we try to make it fun around here too. some days the market's up, it's down, you know. >> how do you fit into the equation here. >> i'm chris's lawyer, business parter, and translator. >> i hope you're not his accountant, not if you just foup out what he spent. >> no. i think when his wife finds out, there's going to be a trip to
cartier. >> your portfolio, you have a loet of cash right now. >> yes. >> because? >> i think the market is a little propped up. i think it's money coming in from stock buybacks and if you just make a lower denominator, it makes it a little easier. >> you're not alone in that fear right now. >> thought it was going to happen to february and it got right to the ka pip lags moment and it didn't happen. we'll see. >> there seemed to be a lot of people burned and a sense like it can't keep going. how long are you going to sit on the sidelines and wait to see what happens? >> i still bought some stuff. i bought something beat up. i'm a big fan of the old school guys. peter lynch. buy good quality stuff. have real earnings. you can still put it in a vault. i've never been a big fan of being a trader because you're always going to be left out in the cold. >> is that like general electric? >> no. i buy boshing stuff. but i'm a tech guy. i used to work for oracle.
i spent time in that world. that was a great buy and keep but they're old technology now. >> are you a day trader now? >> no. we're also serial entrepreneurs. we like startup businesses. we even done a number of businesses. we're opening a restaurant in new york with a frelkd of mine guenther seger, may 20th. >> that's a tough business. >> yfor what he's spending you can tell us the name of the restaurant. >> guenther seger restaurant opening may 20th. >> thank you, chris. we've got things planned for you after the show. we'll go across the street. you get to join us as well. >> thank you. >> if anyone else wants to contribute, you know, $40,000, $50,000. >> there will be another auction, i guarantee that. we're coming back with a closing
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about 2 1/2 minutes left before the cloechlts dominic chu joining us. >> 25 points. >> it was a rally that started on the open and never looked back. >> it started on the open and was up 120, 15 1 30, 150 points. a lot of traders, tried to ask them what the reason was. if they could pin it, it was this quiet rally. it happened after the second day we saw the second highest volume day of the year. >> when you can't figure out why it's happened. >> right. >> oil bumping $45 a barrel. maybe that's the peak. it's become ping up again. >> earlier art cashin was telling me the same thing. there's still the driving factor and it's been for quite some time for months. it will be something to pay attention to. the only thing that some of the bulls may not be as excited
about with regard to this is the fact that technology has been lagging in today's trade so far. so you'd like to see biggest sector of them all. it's still up, just not up as much as the rest. >> fears of retail as well. >> the numbers from macy's. >> this is the week. this is the week where we're going to see a lot of the data points wlrks or not the retail numbers come in. whether or not they're spending the way we hope they're going to. m they make up the bulk of it. it's going to be a huge one. >> as a matter of fact, let's show you. disney is coming up with the earnings in just a few minutes. kelly and julia boorstin will have that and electronic arts in a very competitive category in the video game industry. it's up a fraction right now. >> all of these things will show some signs of whether or not people are spending money and that's going to be it. >> thank you, sir. >> you're always welcome. >> see you later. we're going out with a pretty
good gain of 100 points. they're all higher. vaneck ringing the bell as well as nasdaq. >> thank you. a strong session across wall street. let's take a look at the close. the dow down 220 points. gains on almost the exact same magnitude across the major averages. the s&p up 25 points, the nasdaq up 59 and it's going to be a busy hour for earnings here. we're gong get results from disney, which was also up high e nearly 2%, and we're keeping an eye on others. arts, communications, fossil, planet fitness.
jon najarian is all firing up. mike santoli along with cnbc contributor jon najarian. >> don't think you can point to any one fundamental driver. we like to point this out when all are up the exact same amount. you have the dow, s&p up 1.25% or 1.26%. clearly somewhat mechanical. reallocation into equities. i think the backdrop is the bears had a shot to take us below the range. they really seemed to squander that. the market didn't want to buckle and you had a lot of bearishness building up quietly. a lot of put buying. you had volatility levels that descended down to a point. a lot of them with treasury yields at 1.75% said let's build it a little bit higher. >> what's working for you, jon?
>> clearly we knocked a couple from crude oil. crude oil was up almost 3% per day. the weak report we had, even though on a -- you know, 100 million-person economy as far as the working people, to have that, it didn't seem like the end of the world but it did push off the rate hike. now with a strong jolts report. you're not seeing it. it's 1.73 or thereabouts. you had the german ten-year. you also had this sort of clearance to have this good economic data be good news because you think the fed is not doing anything until february at the earliest. alsoly point out yesterday a monitor someday. $25 billion. another big day today. >> heard yesterday was the fifth
biggest of all time, could that be right? >> it got all out there, really well received. that doesn't directetly resolve stock prices. the system's flush. you get people thinking about buy backs and it seems like things aren't broken. >> let's do shares on that. they're up on their earnings results this afternoon for you. it looks like to the range of about 5%. julia boorstin has more. hi, julia. >> hi, kelly. that's right. electronics arts beating estimates on both the top and bochl line. adjusted earnings coming in at 50 cents a shafrmt wall street at 42 cents per share. revenue coming in at $24 million versus estimates of $889 million. now, e.a. does provide guidants. q-1. fiscal q1 guidance is coming in at much weaker than expected but for a full fiscal year guidance
are coming in higher. kelly? >> who likes e.a. here. >> they need -- >> would you like to introduce me? >> this is steve barrassow that thank you very much. which way do you want to play? do you want to play sports? call of duty? it's back and forth. e.a. is down 6% or thereabouts day to day. you need a digital platform. we talked about that last week, so everyone questions that 5.$51 billion take-up. you have users running straight up. where does e.a. get that digital platform from? it begs the question. >> let me go back to the conversation we had been discussing. kind of in contrast to what we
heard from mark cuban on the network earlier today. let's start by taking a quick listen. >> we're in never never land. i don't know where we're going go, and i don't think anybody does. wi seem to be in a trading range, but the reality is there's really no triggers and then we have the uncertainty of politics, you know. i think, you know, depending on where things go in the poles, we're going to see it impact the market more and more as we progress. >> what about no triggers? >> i think there's no immediate catalyst. that's the thing that matters in the next week or two weeks. i don't disagree. we're smack in the middle of the range. but we're at this level a month ago, but i do think these things are often decided in retrospect. if grease was bad news instead of a little bit of bad news, that could have been a trigger. >> by the way, it feels like
everybody is bracing for china. obviously they thought it was. >> here it is, instead, basically accusations are tossed by one of the houses of their congress. so because of that, that country's etf made a nice sharp turn around and you're that i believe that's the biggest potential. >> it's like a volcano. always. nobody knew what was going on.
now after two months they decided to go backward and everyone looks at oil running, whether it's the canadian fire, whether it's china. how do you start to really put this into the calculus and if you see china start to fall off again, which i do believe you will see because i think it's going to be a consumer pain. >> in a sense they meant it. mon money's cheap. the world is not growing very fast. what do you want to pay today for the earnings on either safe stocks or riskier stocks. it's where te's the crowded tra >> by the way, let's continue
with this theme of the apparel. fossil shares are sinking. mary has an alert for us. mary? >> kelly, the company's earnings on the quarter were pretty much in line with expectations. revenue shares also within expectation. maybe a hair short on that. the reason the company's stock is tanking there, off 25% is because the weak guidants. it's now $1.80 versus $2.80 is what analysts were expecting. one of the reasons is the company recently acquired a company called misfit which is a company that helps you track your devices. again, that week guidance for the full year putting a lot of pressure on fossil's results. of course, the company has been under pressure for the last couple of months in large part because of the concern of competition coming from the
apple wat watches to its others. kelly, back to you. >> mary, thank you. how much worse can that sector get and is it really being priced across the market broadly? >> i think with an accessories chain, i think this is it. >> for the apple watch, it's not what everyone expected. it's been horrible for them. it bled off any demand there was outside of the super high end luxury. >> they needed to do this. fossil need dodd this to try to survive. so, you know, obviously if they get hit on both the fitness band side if the margins aren't going to be there or it's not going to play out as they hoped it would have been, they were going to
die with just the watch. i'm looking across. mikey, do you wear a watch? it's actually a 50-year-old watch. >> he wear as fitbit and you're not buying watches. >> i had an apple watch and it's not working. >> people look at their phones. if you don't have a fitness band, you look at your fones. >> this is what happens. the street is just abandoning. so if the stock is going to trade where the after hours action took it. it's at the january lows. just below $30. >> people are still going into the malls. it bears repeating. >> this stock. screened up there. a lot of the people that sell their goods through the malls are not feeling it. nonetheless, the vacancy rate according to simon is not reflected in that. is not building.
instead there's demand for that space. at least in its malls. >> first of aushlgs 6% comes up. the renlts roll comes up. they have this steadiness about it. plus they'll tell you, they're becoming hubs for other types of activities. we have restaurants and movies. also the anchor department stores aren't really big rent payers. they're there to build traffic. the dividend chase has people diving into these weak stocks. this thing yields under 3%. ite knowset like it's a real fat yield but it's fat enough. >> it's certainly going to bear watching. >> it's going to be a different story. in the meantime, they're effef t effectively -- any parting words? >> mr. cuban said it before. for me i always look at that flat on year which is 2043 let's call it. that is your bullish versus
bearish sentiment. obviously below. we tested it this week. 2039. we bounced right off of thachlt if we start to turn south, flirt with that again, you want to be cautious. 2111 is your resistance on the way up. >> all right. do you write these down? >> no. >> quasi rain man when it comes to these things. you look at them every day. >> thank you for joining us. that is steve grasso. there's more coming up. bonds rallying with bonds today. the question, which is the real tell about the health and u.s. dmi. vanguard's greg davis will weigh in at 5:00 p.m. disney will report its earnings at any minute now. are there concerns about espn going to impact profits? stay tuned. that's right after this.
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u think what's important is the film division. fully. is able to make up for what we're lake from espn. >> the results are crossing. wait right there. let's get to julia boorstin with disney's averages. >> hey, kel, you see disney's shares are down. disney earnings coming in lower than wall street expectations. adjusted earnings of $1.36 a share, that's 4 krenltss less that what wall street expected. snow going through the different divisions as expected, the studio had a big beat. the studio showing much higher operating income than expected. $542 million on "the force awakens" and also democrat zoo tone ya." parks suffering overseas. . now, of course, media networks
are always under the microscopes here. that's a hair lighter than the $5.9 billion expected. operating income grew 9% to 2 president $92 billion. so that's up 9% from a year ago, but it is a little bit lighter than wall street expected. i'm sure they're going to be very much focused the earnings call that starts at 5:00 p.m. eastern. kelly? >> wow, julia, thank you is much. we have ivan fines. this is not a small miss. what's your read? >> well, there was a feeling that parks would be slightly light.
i look at what they're going to do. the tremendous strain. they have two of the most powerful franchise. they continue fro deuce big means. the next big mire is "finding dory." these are great fran chiepss. i'm still positive on the company. any weakness, i think, is a buying opportunity. >> okay. robert. i'm looking. you know, so do you have concerns that resurface here about the strength there? >> well, i mean, look. the transition with what's going on right now, kelly, is going to be a multi-quarter event. it's not going to be solved in one quarter. the hope is film is able ta make up for that.
i wasn't able to hear the top line on films and that parks would do that as well. parks came in a little bit lighter than expected. i think julia said some of that was overseas but also if you look at what's going on in california, half of that park is shut down in preparation for the new star wars land that will be opening next year in time for the new "star wars" film. i agree with i vachblt it's got a very robust pipeline but there are going to be some growing pains. >> julia has more. she rejoins us. julia? >> hey, kel. just to dig into the cable network division, cable networks does, of course, include espn. the on rating income up 12%. the income was due to lowered programming cost and they talk about the shift of college football games. they say in the current quarter only one football game aired
where in the past, seven arid. looking at the parks division, they saw a 4% increase in refr knew. on rating income increased 10%. they talked about some shift in holidays there. and then looking at consumer policies and revenue decreased. so it seems like foreign currency, disney is such a global company that there was foreign currency impact on a number of these divisions including parks and consumer products. back over to you. >> julia, thanks. but, again, what do you think the message is? >> a little bit ragged on multiple different business lines tochl a larger point, disney doesn't miss, even when it's not expected to be a great quarter they tend to make or beat the great number. first time in four years they missed on an estimate. by the way, the calendar shift, it was known. so all of these things that are
moving around. i think what the street has to get train oddtown idea that disney is a little bit less of an annuity-type business and yes, the studio is strong but it's still unclear how much investors want to pay up. >> also the first to reach a billion in a year. that's going to be tough for them to continue on, jon. >> quite frankly, i thought it was going to be a beat tonight. i had call spreads on. luckily they took some calls before i came on thachlt was a good thing. the ones that were deeper toward the money, they were, prior to the $6 drop, it seemed like the feeding frenzy was into the number and there will be a lot of people chasing it down tomorrow. below that if you get that chance tomorrow or in the afternoon hours, think i you take it. >> one thing to keep in mind is when everybody had that moment when they started to become intensely concerned about espn last summer, it wasn't because of the numbers. it's because of what bob iger
said on the call. how he characterized the trend in subscriptions is going to matter and people have to get reassurance that this very, very herb slate of franchise moves is going to be worth paying up for. >> what about the subscriber base at disney. how important is it for you to see growth there or are you comfortable with declines? >> i'm not focused on espn. i think over time you'll see any weakness on espn be strengthened by media in the library in the box office results. i think it's a multi-faceted company overtime and dependences will shift. even as people elect to skinny down their bundle, i think they'll start to show growth at some point. >> robert, you also emphasize the strength in their box office and even how well "the jungle
book" did in india, right? >> right. like you mentioned, let's not forget, the jungle book was the largest ever that happened in india, so that's a whole new exposed to disney. i wouldn't give up on ditzny just yet. if you're a cal sprel spread investors i don't know. >> disney, if it were seven, is down 50 points. a little bit of a hurdle. >> it is. people have started to warm up to the media group in general. disney has underperformed. it's been this kind of push pull in terms of the sector. i don't know that it's going to weigh. disney has been a bellwether
mostly of itself and sentiment toward media as opposed to the consumer. >> what would your next player be in back of this? >> it wouldn't be another media stock, not because i feel burned by disney but the sector rarely gives you that -- disney with a the different levelers they can pull, that's why e chose this one. the one we thought without be negative was espn. the rest of the levels i thought without be extremely positive. a number of a miss. >> to reiterate, disney is down about 6% after hours. also cbs/time warner is down 1%. even viacom has turned down. we'll keep an eye on all of it. for now, ivan, thank you for joining us along with robert luna. we'll have more on the company's miss and the stock's fallout still ahead, plus your iphone currently assembled in china on the back, but it could soon say
plant in india, there after tim cook telling our jim krachler that the company has its sights set on that country. >> this is another huge one. >> okay. >> india will be the most populist country in the world in 2022. india today has about 50% of their population at 25 years of age or younger. it's a very young country. people really want smartphones there, really want smartphones, and this year the first year lte tends to roll out. huge potential. >> joining us to discuss us this ed lee. on the manufacturing side kwharks you do make of it? >> yeah. well, i think this is certainly a smart move for apple. if they can do that, that's important for a whole lots of things.
they need to improve their margins. they're estimating that. cheaper you make the iphone, the easier you can sell it not only india but around the world including u.s. at this point people who want one have one or people who don't have one can't afford one. the lower the price you make it, the broader it's going to be. >> there's been some disappointment at the pace of uptake for iphone there. is there any way to characterize how apple is thinking about this opportunity? >> no. that's good question. i think unlike china, the buying power in india is not quite there yet. it's big populist nation, democratic, all that good stuff. it's just the economy isn't quite there yet. so they need to improve that for one thing. what apps can work on is employ people in factories but lowering the cost of the phones to make it easier. the other thing is you make it
cheaper. apple also needs to find a way to extract more revenue out of every user anyway. if i can make it cheaper, i can upsell it. that's the other side of this equation they need to start looking at or they are looking at as well. >> ed, these 200 million hand sets that they think are going to be sold by this survey, that they think are going to be sold by apple and an increase of 7% to 8%, that flies in the face of the recent talk with subsidies going away with the u.s. and verizon and at&t, the big ones. do you think that 7% or 8% is a good global number as far as the 1.5 billion handsets? >> that's a good point. i think you sort of even it out. but, yeah, that's a good point. with those subsidies going away, you know, it's just harder to justify those extra costs for the consumer. part of the way apple has tried to deal with that is own it as
much as possible. so instead of necessarily doing it through verizon or at&t, it ends up being at&t or some other service provider. i think that's going to be important for apple to maintain that relationship. of course, then at that point, your cellphone is not going to go down. it's only going to go upward. that will be a challenge for them to maintain. >> what about foxconn. this is an interesting time for the company. they were sharp in japan. they've been trying to make a couple of different moves in order to protect themselves as they adjust to apple's new future. >> also as china's economy, i know there's a lot of discussion about the economies getting kind of uneven. at the end of the day, their workers are getting more. if they can open the factories in other economies where the level of pay is generally lower, more profits to them as well. >> thanks for joining us. fuller details on this move.
it's ed lee from recode. let's send it other to mary thompson. >> first of all let's start with the numbers. company earning an adjusted 15 cents a share, 3 cents ahead of estimates. sale ahead of estimates at $83.3 million and same store sales were up. analysts were looking at an increase of 5.6% per year. it's now expecting it. wall street looking for 62 cents a share and on the revenue side, it's expected sales of 360 to $370 million. analysts looking for 371. again, you see planet fitness up over 5%. back to you. >> you're in your planet fitness purple, mairy, i notice. time for a cnbc news update with sue herera.
>> the government is hoping to extend working hours and cut the number ofrest days but the union members say that threatens their safety. democratic presidential candidate hillary clinton campaigning at family care center in lexington, kentucky. she said child care costs are pricing them out of sabing for their children's education. the kentucky primary takes place a week from today. kentucky derby winner nyquist settling in at pimlico where the second leg of the triple crown will be run in 11 days. his trainer said they arrived early to get him acclimated to the track. and golden state warriors stephure is the first unanimous nba mvp, earning it for a second straight season. he returned on monday with a sprained right knee to score 32 points. i'm sure you were watching that one, kel. back to you. >> you know, when they start at
10:30 eastern time -- >> it's hard. >> i did see the recap. he comes into the game, throws up the air ball. misses the first nine shots and then catches fiefrmt 18 points just in overtime, think it was. >> i know. he's an amazing player,'ve phen you're not a basketball farngs watching him is like, i don't know. >> i always thought what if david foster were to write the steph curry in action profile thachlt would be worth waiting for. see you tomorrow. disney earnings, it missed. first time it missed in five years. is the changing media landscape to blame? coming up we'll get an update from ross levinson. and can do where they fight the devastating wildfires destroying thousands of homes and oil production too. stay with us. man 1: you're new.
man 2: i am. woman: ex-military? man 2: four tours. woman: you worked with computers? man 2: that's classified, ma'am. man 1: but you're job was network security? man 2: that's classified, sir. woman: let's cut to the chase, here... man 1: what's you're assessment of our security? man 2: [ gasps ] porous. woman: porous? man 2: the old solutions aren't working. man 2: the world has changed. man 1: meaning? man 2: it's not just security. it's defense.
59. there are shares of walt disney moving lower by about 6% after hours. down about 6.50 bucks. we'll keep an eye on that for you. alberta's premier meeting with oil executives to discuss the impact of the ft. mcmurray wildfires on the industry. let's get to deirdre bosa with the details on this one. hi, deirdre. >> reporter: hi, kelly. they're holding a press conference right now. as you said meeting with alberta's premier. we're getting some information. she just said in the days and short weeks oil production would be coming back online. remember this fire which devastated ft. mcmurray took about 1 million barrels of oil and crude offline since the fire began. we're also hearing that shell canada is the first oil company to start bringing production that had closed down because of the fires back online. and they're surveying some of
its facilities. but for other companies, we spoke with some of the other oil executives going into this meeting. i do don't havances. they're not sure when they're going get the green light go in. when they do, lynnlin to whiste conaco's president said. >> we'll go back physically to determine it we'll see if we can start it up. they're losing $55 million a day they're offline. oil production is the life blood of this kma economy here in alberta. it's already been hit by lower
prices. even though we're seeing it trickle back online, there's still a lot of uncertainty that lingers for oil markets for many of these companies and especially, especially this human element here. remember 1rk 00,000 people were evacuated. they still don't know when they're going to be able to go home. the premier said it could take weeks to even come up with a timeline. i want to show you some of the media coverage. it's a bright side to this story here how canadians are dealing with this adversity. i've got some newspapers here, local ones and national ones. i say despite fort mac devastation, still saved. one more says ft. mcmurray is still here and certainly you see evidence of that all around town here in edmonton where many of the evacuees are still here. >> the fact they have to sate's still here tells you about the scale of this. i understand it's one of canada's worst natural disasters ever. so going back to this meeting,
you know, is there a sense of how quickly, you know, this oil production is going to be able to get back online? >> reporter: well, keep in mind that officials were only able to get into fort mac to take a look at the damage yesterday. and as you said, the city, this is a gateway to the oil sands. it supplies a lot of the workers and operations around ft. mcmurray. 10% to 15% of it burned down, 2,400 structures. there's a long way to get the city back up and running but as the premier has been talking about, a lot of the operations are far enough from ft. mcmurray and the facilities have not been touched. it could be days or weeks before it's back online. >> thanks for now, deirdre. deirdre bosa with the very latest. mary thompson has more. this is a mover. >> it is. they're improving their gains am bearish report on crude
inventories as crude inventories rose by almost 3.5 million barrels. so, again, crude pairing some of its gains in the wake of. gasoline inventories, the bullish report from the api. they rose by 271,000 barrels. they built 710,000 barrels. again, all of this comes ahead of the d.o.e.'s report at 10:30 eastern tomorrow morning. back to you. >> thanks, mary. mary thompson. how would you like a nice cold glass of america. if budweiser gets its way, you might be asking that this summer. we'll explain in a bit. plus ross lever insoen weighs in on disney's earning. keep it right here. you're watching cnbc. first in business worldwide. but it's mostly getting to watch your directv with unlimited data from at&t. we're setting families free. so they can stream away
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welcome back. let's get back to julia boorstin. she has more on earnings. >> one more footnote with disney's earnings. the company announced it's exiting the self-published console games business. it included a $147 million charge in connection to the did continuation of the self-published console games business principally infity and infinity charge. away of publishing its own video
games. it licenses many of its characters to other games. i'm sure we'll hear thb $147 million earning charge which begins at 5:00 p.m. eastern. >> looking forward to that. i don't know if this is relevant but in the electronic arts report they talk about how "star wars" expanded their base. >> i would think disney would rather sell the intellectual property that way. this is presumably part of disny's interactive business cha which has had trouble gaining momentum. >> how does the report sit with you as we move through the hour? >> as i say, i got bit on this one, left it out there a little too long, i guess, and they slammed the door on my tail. nonetheless, i like it right where it is here. i nibbled at it in the after hours here. not sub 99. sub 100. sorry. 50-day moving average as well. >> it basically was as low as
88, right? >> february lows. >> february lows. markets are much worse than they were. if the whole report is they wind some of the optimism, why below 100 and why not going back to those levels? >> well, because i don't think the espn numbers were the fear numbers put out by mr. iger. so i think he was prudent to do that and to be up front with us, however, it hasn't born out. the cord cutting has not been as severe, and that's why i think that we won't see 88 again, but i could be wrong about that, too, kelly. >> hey, it's a market. it happens. the 2016 election isn't just turning the market on its head. it's changing the name of the kick of beers but not everyone is excited about grabbing a cold america. >> it's like what are you going to say? can i have an america or do i want a bud light or bud.
welcome back. here's a look at shares of disney, down about $7 now. sinking after reporting earnings it missed for the first time in five years. our next guest previously holding executive positions with fox media, cbs sportsline and former ceo of yahoo!. he joins us now in a cnbc exclusive from the sun trust conference in san francisco. ross, thank you for joining us. we know you're involved in the bidding process for yahoo!. you've got a nondisclosure agreement. we'll start with your take on
disney's big earnings miss. interested in what you think is really going on here. >> well, look, we're sitting in the middle of a massive transformation in the media ws. you have shifting audiences, shifting dollars from advertisers and subscribers. i think yet to be seen, disney's been an incredibly great performing company. i think we have to look at a couple of quarters here versus maybe this is just a blip. obviously look at facebook's earnings, which were, you know, terrific. google continues to expand. netflix continues to expand. we're really looking at perhaps some real shifts in both user consumption, and dollars being spent. >> what do you think is the best way for disney to preserve the earnings power long term? >> well, look, i think you have to look at the two sectors as a whole. when i say two sectors, you think about it, i think about it in terms of the technology
leaders and the traditional media leaders. and this is, you know, the next 24, 36 months is going to be critical. i think we have to look at, you know, reality and hype. hype maybe being, how fast will this idea of a skinny bundle happen. some reports i've read in the last couple of weeks say, 15 to 20 million skinny bundle subs within ten years. that's not dramatic. right? we still have terrific businesses. on the other hand, if you look at the rapid expansion of companies like facebook and even snapchat now, which i think is one of the more exciting companies out there, if i were sitting inside of a media company, i would weigh the risk versus reward of being -- playing defense and playing offense. i think this is a conundrum that has sat inside the halls of disney and newscorp and fox for a long time. but i think you can clearly see
the wave coming. and it's just a question of, do you want to embrace this transformation, or do you want to play defense? if you're a football fan and you watch teams that play offense and defense, you know what the outcome will be. >> ross, you cite facebook and the amazing momentum the company has. as i look at the way the company is valued by the market, you can actually add alphabet, google to that in terms of the mega caps, at least the market will say you're going tod dominate a tremendous growing share. does the pie seem like it can get and stay big enough for everybody to eat enough? or is it going to be like what amazon is doing to retail, where it's dominating the growth basically to the exclusion of everybody else? >> right. great question. look, i think the total ad market is enormous. clearly the momentum is on the side of google and facebook right now. that said, i'll be a contrarian. i actually like where media
companies sit. i think when you look at somebody like your parent company, nbc, you know, steve burk and brian roberts have taken real swings over the last year and they're learning from it, and they're learninging that the boxes and the buzz feeds what they can do, and the risk and reward is. that said, think about the reach, the relationship the traditional media has with the ad agencies and the clients, and think about how fast facebook and google are trying to catch them, or catch up. if i was sitting inside the walls of one of those companies, i'm a digital -- >> it sounds like we might have lost -- >> we can use our reach and distribution and relationships to grow this new pie of money. work with the new creators of content. who all want to be a part of something bigger. i'll quote my favorite artist,
bruce springsteen, poor man want to be king, king want to own everything. if you are a new creator of content, you want to be on these big platforms that exist within nbc, fox and cbs and the like. massive distribution, massive audience, and massive relationships. >> ross, thank you for joining us. great to hear your perspective. we'll bring you back to hammer you about yahoo! next time. up next, why you may be reaching for an ice-cold america instead of a budweiser this summer. jpmorgan's jamie dimon will be on tomorrow. you won't want to miss it.
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local & global. open & secure. because no one knows & like at&t. welcome back. the summer barbecue season is right around the corner. instead of reaching for a cold budweiser, you'll be reaching for a cold america. it's apparently being rebranded. jane? >> oh, kelly, sure, it's owned by a belgian conglomerate. this summer's red, white and brew, budweiser ceo came from regulators to rename itself for america for three months.
will it help the lagging sales? we asked the folks at the most american of destinations, times square, if they like it. >> no. >> no? >> no. i like budweiser. how about budweiser american. >> okay. >> combine it. then i'm okay. >> i don't know. oh, my god, that's weird. >> are you lying? >> we don't call guinness ireland. >> what are you going to say, can i have america? or do i want a bud light? or bud? no, no america. no way. >> yeah, i mean, it's like super patriotic. a good way to get everybody, like, on board. i don't know. >> good move. >> that's fine. >> i think it's great. when i'm drunk, i can go, america. >> kelly, some are joking that bud light should be renamed canada. back to you. >> there's a few people i would like to have that bud with. that was hilarious.
dr. jay, are you buying it? >> i also think it will be great for the olympics. great for the election to get any edge they can get. but for olympics, drinking an america, good. >> and america. anyway. thau thank you, jane. time now for "fast money." "fast money" starts right now. i'm melissa lee. your traders on the desk are pete and steve and dan and guy. a top technician said a major shift occurred today in the market. it could signal the next hot trade. we will tell you what it is and how you can get in. plus, with the markets moving higher today, three dow stocks hit all-time highs. the names and what they have at in common at the bottom of the hour. why some traders are betting for pretty big moves. first, we start off with a story of the hour. shar o