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tv   Closing Bell  CNBC  May 17, 2016 3:00pm-5:01pm EDT

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so i would be concerned about oil on a short-term basis. i think it's overdone on the upside, quite frankly. thank you so much for watching "power lunch." >> "closing bell" starts right now. well, hold onto your hats and welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> where they're celebrating 224 years. >> that's right. >> happy anniversary to the exchange. i'm bill griffeth. it's happened again. stocks giving back a good chunk of gains after new data shows inflationary pressures are increasing, and for some that's leading to more expectations that the fed could continue to tighten monetary policies sooner than later. we'll talk about all that. >> but take a look at home depot. it's the biggest drag on the dow today. that's after posting better than expected earnings. strong guidants too.
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our investors are throwing the baby out with the bathwater. we were asking about under armor earlier too. more on that is coming up. >> the so-called fang stocks, those that yuld used to be the hottest in the tech sector. two have been losing their bite lately. we'll look at what's behind the decline of their names and wherever they can recover. >> and we'll talk about the future of cable and we'll speak exclusively with the president of cox communications coming up. meantime one of the stories that set the stage for this morning, we had home depot dropping despite an earnings beat. courtney reagan here to make sense of it all. >> hi, there. bill. home depot again posting quarterly results strong enough to beat analysts' expectations for profit and revenue and its most important quarter of the spring. and for extra positivity, it raised its earnings forecast.
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they grew more than 7% in the u.s., more than 6% when you add in mexico and canada. however, comes did decelerate each month of the quarter to up 4.3% in april and that's likely fueling some of today's stock drop. >> that's a sore spot from last week with the department stores seeing the busy really drop off in mar and into april. but honestly, that's not all that surprising to us. our azaleas haven't bloomed yet. i live in westchester county. it's been a cool, cool last four weeks and there's been a lot of business ahead. we think the stocks pull back, but ultimately the business is going to reaccelerate and the stock will reaccelerate. >> now chris also says buying home depot is buying into a sustainable earnings trend. he's not alone in thinking it's one of the best executable retailers in the space with one of the best online businesses as
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well. it's something that's become much more important especially recently. bill? >> that's it. i thought it was just my azaleas that haven't bloomed yet. >> it's been a wet and pretty cool april for a lot of folks and everybody saw it. >> it's always about the weather somehow. courtney. thank you very much. joining us, jay nifen of nifen worldwide. i know you like the home depots of the world. they're backed by a housing industry that sees a lot of do-it-yourselfers. are they a special situation. >> home depot is the best in class retailer and they're not just great in their sector. they're great in any sector. if you compare them to anybody in retailing, they're a strong player with a great management. they're well ahead of lowe's in their sector.
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they're really the best in class. when they trade off, they're a buy. they're always a buy. i'm a pair perennial bull on h.d. there's nothing wrong with the consumer. >> we've also got t.j. maxx here, jan. it seem like and we're seeing that the price level becomes a little too tall for even the best operators in the business. >> it's not one of my picks. i wish it had been one of my picks but i agree. i think it's getting very crowded in the space. there's t.j., there's ross, of course, but then everybody's got a version. macy's is starting up, kohl's is starting up, burlington is doing
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well. stein mattrt's in the space. i contend that's a pretty tough business to execute perfectly every time and the market is sort of treating t.j. like it has to perform every time. that's a tall order. they're not on my list but they're one of the best in class retailers in the world, there's no doubt about that. but i do think the space is getting really really dense. >> speaking of which, i know you were talking about this on air last week. there seems to be a tipping point from the earnings point. we're overretailered right now. you were talking about the potential demise of the malls throughout as well. have you seen anything else that has changed your mind on that or reinforced that here? >> i haven't changed my mind. we've got about 400 too many enclosed malls out of the 1,100 we've got. i still contend the best one, the top 250 are going to gain shares and do well but the bottom end malls, there's too many of them. when you've got 48 square feet
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per person and the next country, the uk, has half of that, you have way too many stores. and if you adjusted that to what's going on on the internet, you'd have to raise that by 50%. it's just too much there. and we certainly are going to see half of the business go online over the next 13, 14 years. if i'm right about that and it's going go up from the 7 1/2 to 10% penetration now, there's going to be a lot of stores that have to go away. >> you know, jan, just when we have you, what about nike and under armour, are they getting cared out? especially under armour continues to underperform. >> my basis has been we're seeing a rollover of athleisure. even though i don't think that's a problem for under armour or nike, i think that's bleeding into their stock. they're more a guy's business,
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more performance businesses. they're not really athleisure business. and the shoe business is fine. i think people going away from nike and under armour is wrong if they're going away because they see the athleisure rolling over. i don't see what the reason would be. my only concern about under armour is it looks expensive all the time because it trades at such a high multiple. i always liked nike better but as farm as a performance, under armour, one of the greatest businesses they brought out of the ground. it's not that old. it's a fabulous franchise, but nike really owns that space from the point of view of being the biggest player and they're really well in control of that space. they're not really giving that much ground. they're doing a very good job of maintaining their image. the customer still tells you the number one thing is nike. >> thank you, jan. appreciate it. covering all things retail for you as we kick off the hour. >> let's get to the "closing bell" exchange. it was down more than 200 points a few minutes ago.
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joe duran from united capital is with us, steve grasso of post 9, and rick santelli is here joining us from chicago as well. hey, steevgs i was always taught, one time is an incident, two times a coincidence, third time it becomes a trend. and this is the third time in the last couple of weeks when a 200-point rally on the dow has been followed the very next day by a roughly 200-point decline. here it is. what's going on? >> people are starting to get worried. i shouldn't say starting to get worried. people are starting to focus on yellen again. china as well. the numbers haven't been that great. we've heard -- kelly and i have talked about this on "closing bell" before. february 24th, you heard china talk about their fiscal deficit to gdp ratio. they were going to increase that. if they increase that, they're really stimulating their economy. and then the market ran 10%
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after they stated that. so now we're seeing them -- last week they took that back off the table. they backtrack. so i think the market has to come in. is it 10%? maybe. i think we do have to test lower levels. but i think the rate rise coupled with china is the reason to take some chips off the table. i've been selling personally. but right now, intraday, 2043 is your flat on year. that's been support for the month or so. let's see if it holds. >> joe, do you think we're going to test the february lows with some of the concerns about china coming back to the floor? >> i'm not sure we're going to go that low, but it's very -- when you have these kinds of quick turnarounds, it tells you there's a shift that's occurring in psychology, and i think we might be entering a period where seasonally as well, people are more thinking about protecting rather than gaining on their portfolio. when that occurs, you really want to have a portfolio that's defensive in nature so you're
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not sub jelkt to all the whipsawing. i do think the likelihood of a fed increase is low simply because while there is some inflationary pressure, especially in wages, which drives inflation a lot faster and more permanently, they don't have the cover with global growth and so you're going to have, i think, people protecting their portfolios. you don't want to do anything too rash, but you also want to make sure your portfolio is ready for turbulence. i'm not sure we get back down to the lows, but i don't think a 5% to 8% decline over the next few weeks would be an unexpected surprise. >> okay. rick, as you know, there's a great piece on the subscription portion about the flattening of the yield curve being the flattest in nine years. i know you've been talking about that and what it means or may not mean right now, right? >> yeah. i'm sorry. and with all due respect to all the wonderful people i'm sure who worked on that project, i don't think any of the old rules
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fit, and i'll give you just kind of a silly example. i think you'll get the point. if that flat curve is giving us a signal about a recession, tell them to sell a third of its treasury position and have a steep curve and be ready for a bull market. i'm sorry. i'll give you another example. we're now all waiting for dell's pricing. upsize. 20 million. four to five times oversubscribed to. keep that on the left column, the right column. mario draghi is going to be involved in corporates. it can be involved in a number of ways, whether they have some kind of intersection with the government. what i'm getting at is when they decide to pick the corporates and the whole notion of getting in front of central bank activities, they're going to be mispriced. if they're going to be mispricing europe, they're going to misprice everywhere. the long end doesn't stand a chance. to me, today was a great
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example. you get a cpi headline, the hottest since february 2013. the yields go up and straight back down. thinking about dell, about corporates, compression in the long end. if there's anything the yield curve tells us, it's what the fed tells us they should do and ultimate lay they don't seem to do and that is, of course, snug up rates. >> i'll add to that, rick, bank of america noting they think the high-grade market could double in size in five years because of the central bank's buying. and then, of course, they say poor lending decisions and misallocation of capital are a concern. joe, we'll give you the last word then. you say you're avoiding a lot of the glamorous stuff and avoiding utilities and going to the markets and stuff like. going to the pricinging, aren't they getting pretty rich here? >> they are. the way we think about it is very simple. you want to have some exposure
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to international markets because we've been eight years in this recovery. so larger midcap growth year but not overly aggressive stocks are more interesting because the move in mega cap, the move in the glamour stocks, people will move to the underappreciated assets. again, you want to build your portfolio, make sure you're allocated for some coming storm, not a huge one but some storm so you're protected. once again, don't do anything extreme in the midst of turbulence. again, we're probably headed to that in the next few weeks. >> very quickly, before we go. you're at 2047 on the s&p right now. >> 2043, that's the level to watch. key in on that for the next couple of sessions to see if that holds. in particular today, that must hold. if it does not hold, it gets real ugly real fast. >> all right. we'll see what happens. thanks, guys.
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we'll see you later. >> 45 minutes to go. the dow is down 183. the s&p is down 9 19 and nasdaq is down 56. our josh lipton was there. we'll get the lowdown live from seattle coming up. also ahead the president of cox communications tells us how he's trying to differentiate the cable and telecom company from fierce rivals and it may be good for your health. you're watching cnbc. first in business worldwide.
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welcome back. dow's down 200 points. the nasdaq is down 60 points. on your screen are the sectors of the s&p 500. energy is the only outperformer as we continue to watch crude flirting with its highest level since last fall. otherwise and especially utilities. we talk about rates. we talk about different things that might be feeding into that. they're the hardest hit, down 2%. >> not all stocks are lower as
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you see there. we have a couple of movers to tell you about. the rental company ceo reported an open market purchase of 66,000 shares of hertz over the past two trading sessions, and its chief financial officers disclosed a purchase on friday. meantime the lending club is down. they disclosed late yesterday it has received a grand jury subpoena. it was forced out last week, as you know, after an internal probe found faulty internal controls there. the company also says a large number of investors have halted funding for loans. they found no problem with 99.99% of the debt it sold in the two years through march. now there's a lot of uncertainty in the cable space. sources say the cable deal could be closing tomorrow. more on the consolidation of the cable space, let's turn to julia
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boorstin. she's in boston at the internet & tv expo with cox communications president patt s esser. >> thank you so much. thanks for being here. >> thanks for having me. >> this year there's a lot going on particularly consolidation in this space. the big question for you as the largest privately held cable company, do you need to merge to have the kind of scale to compete with all the big players now? >> we don't believe so. we like where we are today. i understand there's a financial opportunity when companies come together. i think we've had five different large players in our industry do deals in the last several months and i heard bill and kelly say those are going to close relatively soon, probably on thursday. but we think given our space, having a private owner like cox enterprises who believes in our business, continues to invest in our business, and we continue to build platforms that are industry platforms, we can build
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the scale we need to. >> you're not competing with all the other cable and telecom providers that are offering tv bundles. right now you're dealing with the issue of cord cutting and court shaving. you do need court scale and better technology that you can only get by being a big err company? >> first off, you talk about a lot of innovation and disruption and competition. don't forget, this all happened because companies like cox invested millions of dollars to create this disruption and many times we're bringing it to the marketplace. services like home health and connected home where we're offering security suites of services or home control, home monitoring. the point is the video space made a comment about it there. if it is such a bad space, why does everybody want to get into it? there's more consumers consuming video in this country than ever in the history of the country. we think we'll have to evolve our packages as time goes on.
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we're doing that. and we'll have to bring to the market packages and services of content our customers want and we're prepared to do that. >> do you want to jump in here? i'm curious. we talk about the cord cutting and cord shaving. where is this going? will we ever see a day in this industry where it will be truly a la carte where customers can pick and choose the channels they want and forget everything else or will we always have bundling of some kind, do you think? >> i think there will always be bundling and packaging. every piece of research we do tells us our customers want that. along the way they want to have choice, whether it be in their broad band services or video services. just so i can correct one myth that seems to be going around, if you look at the first quarter, the video gained customers. we gained over a million bronld band customers and video customers. along the way we have to keep adapting our packages.
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they allow us to do a lot of those things, and we have to be flexible with our partners. companies like your parent company, comcast, nbc has to work with us in putting those packages together. >> i was going to ask, i see you guys are going into the health space and telehelp. what in the world is that all about, i'd love to know. >> you know, well, you think about the business. we just talked about the video business t broad band business, telephone business, commercial business, businesses that we're into today. when we left out horizon and opportunities are coming our way, we look at it as a huge opportunity not just for cox but for this industry. when you think about how the american care act is changing, hour health care is going to be provided to you as an american citizen and how they will get reimbursed, we need to put in place technologies and plat performance like tripolo.
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we monitor your home for 90 days to 6 months. it improves the outcome of those patients. or better yet, we think about chronic issues. diabetes is one area we've been working in. we can make people healthier in this country. we believe in that. >> unfortunately we're almost out of time. i want to bring it back to your core business which is selling television bundles and internet access. we know what's going on with your competitors because they're public. but what about yours? >> we have five tiers of broadband services. we're still aegd them very rapidly. in fact, in the first quarter we added about 50,000 kplers in the first quarter. residentially about 10,000 commercially. we're still seeing an expansion in that space. but as bill said earlier, people want more choice. we have to keep working to give them more choice. at the end of the day, the consumer wins. i think the industry saw a very good first quarter but let me
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underscore what you said. it's a very, very competitive marketplace, you have to prepare to make the kind of investments this industry requires and you have to listen to your customers. if you do that, you're fine long term. >> thank you so much. bill and kelly, back to you. >> thank you, julia. pat, nice to see you. thank you for joining us today. we appreciate it. >> thank you. the dow down 212 points right now. just about close to the low for the session. >> below 17,500 even. amazon's co jeff bay southeast sharing his information on the tech giants wchl'll go live next. plus amazon is the "a" in the so-called fang stocks but is it part of the winning half this year? we'll have a special report on fang stocks losing their bite coming up. hi...i'm pamela yellen. you may have read my bestselling book "the bank on yourself revolution". over the last 25 years,
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heading to the last half hour, the dow down 1.34% or 236 points. look at the nasdaq. that's the biggest decliner. yesterday the biggest gainer. down 1.49%, 4703. there's your pittsburgh lick offering priechlts today marks the first day that the mobile payment processors, investors, and employees are able to sell their 64 million shares.
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that would be the lockup explanation. more than triple square outstanding stock. it has come back. it's up a third of a percent at $9.19. >> now amazon's jeff bezos is addressing share holders at the tech conference in seattle. joran lipton has more. he's out there. >> that's what jeff bezos joked about at his shareholder meeting earlier today. his point is the prime members benefit. fast, free shipping, same day delivery on more than one million items. bezos wouldn't say exactly how many prime members there are. he said this is a very valuable seattle. the team at canter fitzgerald said there could be as many as 60 million prime lenders and
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they spend as much as nonprime members so it's important to keep his prime members very, very happy and amazon shareholders have reason to be happy. take look at the stock. still up more than 60% in the past 12 months. shareholders did have questions about that prime program, spengly how he's going to replicate the success of prime overseas and what bezos suggested is they're not going to just copy and paste that prime model. in emerging markets you have different regulations, transportation efforts and payment systems but make no mistake, his ambitions remain truly global. amazon india is now the most visited e-commerce site. back to you. >> thank you. i was just going say speaking of keeping prime customers happy. i tried to order laundry detergent and cascade on amazon. >> did you order the button?
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>> no. now they put you in the pantry and pay $5 shipping for the box. i don't want to do that because i'm a prime member. try to scroll down and find the detergent that's prime eligible but not prime pantry. it took me at least 15 minutes. >> i'm glad this kind of stuff doesn't happen just to me. it can happen to a millennial too. it does my heart good. >> i love when you can just get on there, boom, quick and easy. it's there the next day. i understand they're trying to push people into different delivery options but it's a pain in the neck. >> ain't technology grand. >> amazon is the "a" of fangs. susan lee joins us with the latest instollment of our day long series. >> facebook, amazon, and google better known as the alphabet or
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fang, people know about them and we're talking about them. they're receiving equal love. we ran through the numbers february through april and we found you have a 50-50 chance of picking a winner in the group since there's a pronounced split in that time period. pulling away from the bunch, amazon. and facebook is up nearly 5%. book stocks traded positively more than half the time. why, you ask? they continue to show growth in their core businesses which is helping them power ahead and maintain market share. meantime the laggards in the group netflix have been down with alphabet the worth of the bunch while netflix has falling 2%. if you're asking why these fangs are looking good, amazon is looking at their costs. as you see, some of the fakes are losing their bite. back to you. >> ah, yes. we knew that was coming there. >> thank you, susan. >> do you have any netflix
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story? >> i don't have netflix. >> all right. good. >> time for a cnbc news update. do you do netflix? >> no, i do not. >> with sharon epperson. hi, sharon. >> hi, kelly, hi, bill. hee 'eers what's happening this hour. officials said the city resident, may or and police chief asked for a review. there was a shooting death of an african-american man by a police officer. on the new labor reform law. he said 74% of french people rejected the reforms. police deployed tear gas in the left bank neighborhood in paris after new terngss over the bill escalated. the quaker oats company is recalling a small quantity of its granola bars due to listeria concerns. an ingredient supplier was found to have distributed sunflower colonel
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kernels that may have been contaminate. no illnesses have been reported. the man was dead when the $130 million sale was closed. bill davies is british multi-millionaire who owned the building died on may 7th. five days before the sale. davies' death was revealed 16 hours after the deal was closed. that's the cnbc news update at this hour. back to you. >> unbelievable. >> unbelievable. >> so it was suppressed, the information about his death? >> that's what some are saying. and, of course, the city really wanted that building. so it will be interesting to see what comes of this. >> wow. that's amazing. >> i know. >> crazy. thank you, sharon. >> sure. >> wow. into the last half hour we go. the dow down 213 points am leading trader will tell us what he's watching into the close when we come back. and later we'll speak with a shopping mall developer about the retail wreck and if he's been putting plans on hold or going full steam ahead. stay with us.
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welcome back.
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biosciences are on opposite paths. the patent trial and appeal board says the arthritis drug may be invalid. the agency has agreed. they says it's shown a reasonable likelihood of winning that challenge. bill? >> going into this last half hour, we have matt cheslock on the floor where they're celebrating the 224th anniversary, by the way. >> and a 224-point decline, by the way. >> look at you. we're not talking with you on a big up day. >> i'm surprised we weren't on yesterday. a lot of cross-currents. we've got a lot of stuff nay be a focus as the fed meets tomorrow. they're going to talk about a june or july rate hike. we're starting to see gold act well and commodities.
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>> i think steve mentioned if we break through it and close below it it could not bode well. but we see how the market turns on a dime. so i'm not going to look at that number as hard as steve is. i'm going to be more nimble especially toward the close because if there is follow-through, it could be bad and the upside isn't that great. >> this is the difference between this year and last year. we had the dippers come in like yesterday but now they're selling those rallies there. >> sell them and go away. that was advertised until yesterday. that was saying, whoa, that's not going to work this year. but it may be the case again. you know, one thing to look at is transports. they're acting surprisingly well today. innocent. >> even in the face of higher oil. >> yes. which is really surprising.
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they took this market higher. thanks, matt. see you later. kelly? >> thank you, both. 20 minutes left to go. dow is moderating a little bit off its lows. the s&p is down 21. the nasdaq's the worst performer, down about 60 points to 1.25%. qatar airways is going nose to nose with delta. they'll speak with us about their escalating open skies battle next. later, what to watch in kentucky and oregon as hillary clinton and bernie sanders face off in today's democratic primaries. stay tuned.
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18 minutes left with the dow down 224 points. the holding company of billionaire investor carl icahn has been cut to junk status by u.s. ratings agencies standard & poor poor's's. s&p cited loan to value radio and a decrease in cash. however, s&p did raise the company's outpook to stable from negative reflecking its expectation for the company's portfolio quality, lid equity and diversifications remained
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relatively unchanged over the next 12 months. through all of that the stock is down 0.82%. kelly? >> let's get to the nasdaq. bertha coombs has what's driving it lower. >> the one thing we can say as we've moved lower this afternoon, the volume has not been significantly higher, so sometimes you might say that is a problemy for just a real sentiment and just how committed people are to this decline nonetheless. the nasdaq dipping into correction territory, down 10% from its recent high this and and it's led by small caps. we're seeing a big decline when it comes to the biotex. the biotechs have negative sentiment. they're very much in bear market territory. bear in mind this time of year we often see biotechs start to move up because we're ten days
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away from the asco convention. apple getting a bit of the tailwind from berkshire hathaway. a couple of funds bucking the trend with some. vote a phone is higher on earnings. back to you. >> thank you, bertha. by the way. i'm jealous. she went to broadway. >> it's fantastic. among the top five ever. >> i'm very jealous. >> you're going soon. >> i know. thank you very much, bertha. qatar airways is growing in the u.s. it's adding service to atlanta. this move's striking a blow to delta which calls atlanta home, of course. the two arlts have been at war over the highly controversial open skies agreement and joining
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us now from atlanta is qatar airlines ceo. sir, it's nice to see you. thank you for joining us today. >> thank you. >> this flight begins june 1st. tell us about it. you're going to bring in the big a-380 jets to begin with, aren't you? >> yes. they'll be flying in on the inaugural flight. we have to show the sophistication of what we have in our fleet. >> many of the u.s. airlines continue you to be a challenge, now including on their home turf. what do you say to those who wonder whether, you know, you're coming in and trying to unfairly steal very lucrative market here. >> no. we come here not because we are battling with anybody. we come here to serve the people of tlachblt we have a huge
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following. we had a lot of representation from the people of atlanta to operate here as they needed a quality airline from our region because you have a huge area of people coming from our region and from the sub continent and this is why we're here. we're here to do business, not challenge anybody. >> i imagine you're watching the political climate here in the united states very carefully and the talk of trying to restrict visas for muslim individuals to come to the united states during what would be a trump administration presumably. what are your thoughts on that, and does that get you to rethink perhaps coming even more into the united states to do business here? >> frankly speaking, i have made many statements in the past that this was all for political gain. i don't think trump means what he says. he does not realize that he has a lot of investments in muslim
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companies and at the same time there's a huge population in the united states. so i think this is only for political reason and i don't think he means what he's saying. and like all politicians, he says everything, but once he gets elected, he will change his mind. >> so you're coming to atlanta. and where else can we expect, you know, flights from your airline, sir, in this country going forward? >> we'll go wherever we have opportunity, wherever we feel that there is business for us, wherever we feel that the people require high-classed services that qatar provides, we'll go there. we're entitled, according to the open sky agreement we have with your great country, and we will bank on that. >> are you -- last question -- able do this expansion and fund it because of sibcydys in your home country? is there an element of truth to the idea that this isn't sort of
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a stand iowa lone business as it were? >> i don't want to go that way off the subject of subsidy. we have done our filing according to the challenges that was given to us and we're waiting for the decision of the united states government. we have provided all the information that they need to prove that this is ill-founded allegations and that we are not subsidized or depending on any subsidy from anybody. >> all right. well, flying from atlanta to doha is now possible or it will be soon. akbar al baker, thank you for joining us. >> thank you, sir. >> he is ceo of qatar airways. with just a little over ten minutes to go here, market is down 210 points. transports are still in the green. if you're looking to seal the deal on a new stock purchase, jeremy hill, the head of markets at leavy says try tupperware, seriously. he'll tell us why next. there's no one road out there.
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joining us, jeremy. to make the case for tupperware
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today, yes? >> well, when we look around, right, we have day like today and people are a little bit angry about the fact that we've got better economic data, we have better fundamentals, but that's what we've been wanting all year long. for us in our portfolios, we look for shareholder yield. this is going to benefit shareholder yield. tupperware is cheap right now. it's a 5% ebitda. >> what else you do like? >> we like growth companies that have not fly-by-night companies but companies that was at one time levied to the cars, gaming. this is a company that has a lot of legs to it and we think it has a couple of years basically for upward earnings. >> the yield curve has flattened. our friends have done the research and said when that
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happens, the areas of the stockmarket that do them best are the dividend paying companies, the utilities, the telec telecoms. there's no reason to believe the fed's going to raise rates any time soon but we're probably going to see a continuation of this flat yield curve. do you want to remain on the defensive in that regard? >> i'm not sure you want to say defensive. but you want to put shareholder yield in front. those are companies engaging in buybacks, they have good dividends, and i think that should be the leading part of your portfolio behind that. a little bit of growth. also, it's not so certain what's going to happen with the federal reserve. >> that's for sure. >> we're not so sure on day one or day two. >> would you stick apple in there? >> we're holders of apple. we like apple. we think apple right now is derisked. so if you have $100 to put in the market, apple is a better market today than it was six months ago. >> do you like utilities?
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>> utilities are not something that i would ever buy, but anyway -- >> it was the best performing sector last year. >> it was and it probably will continue to be an okay performing sector, but that's based upon bond proxies. i mean if you look at the market right now, the dividend yield of the dow is 2.6. the ten-year is 1.7%. >> i got you. i hear you. >> there's a bit of an arbitrage. >> smart people like you still don't like the utilities. thank you, jeremy. >> thank you. >> we'll take a break and come back in just a moment. >> after the bell, we'll see what happens if the market gives up all the gains from yesterday and then some. we'll ask. stay with us.
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and it keeps my investments fully mobile... even when i'm on the move. sign up at and get up to six hundred dollars. we mentioned a 200-point rally became a roughly 200-point decline. >> negative 13 points for the two days. >> and there we are down over 1% or 186 points. what did do well with the higher oil prices is the transportation stocks. the dow transports, they were much higher. they've since come back. a lot of the components in there were very strong. >> right. airlines were good.
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also avis were stronger. that had a ripple effect on avis. those two helping out. energy is strong as well. i didn't see the last print on that one. it said 48.56 right now. so we keep getting ever closer to that $50 sfleevl right. and energy stock did sell off. i expect and we have come off the lows of the day for the markets. they might end up with a slight gain here. a couple of things, we did hold support of s&p 500. we should expect two to three hieks. they said the same thing to our own steve liesman two weeks ago, but when you combine it with some of the inflation data we received today, that seemed to have spooked the markets a little bit more. >> there's the ten-year note with a yield of 175, 176, and we've been highlighted the flattening of the yield curve. it's the flattest it's been in
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roughly nine years now. >> that's right. which you would usually tend to see. you'd see a bit of flattening because you expect to see short-term rates rise. >> in anticipation of slower growth. but rick santelli says monetary policy skews that right now. >> that's right. that's right. that's what we're seeing. again, it was fed comments or comments from the fed. we had the hot data. although much of that was energy prices. >> right. >> and an industrial production number that was a little bit stronger. >> home depot's numbers look good but the stock did not. tomorrow we're going to get lowe's numbers. although, home depot has been the leader in that category. >> more importantly we're going to get the minutes from the fed's last meeting and traders will certainly be focused this. expect to see this kind of volatility until the fed's next meeting because the market keeps bracing for another one. when is it going to happen, when is it going to happen. this will be in the next couple of days. >> thanks, mary.
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see you later. there we go with a decline of 180, 190 points on the dow. ta tableau ringing the "closing bell" along with morningstar. i'll see you, kel. see you tomorrow. a down session on wall street. the dow giving up 182 points on the bell there, the s&p down 119. the nasdaq, the worst performer again. it saw 59 points, another 1.25%. we'll keep an eye on all of that for you. let's get to today's panel. we have cnbc senior market's commentator mike santoli along with elan moise from the
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"washington post" and guy adami. welcome, guy. welcome, everybody. this keeps happening, a rinse and repeat over and over. but is there something broader or more troubling? >> we mentioned it yesterday. marked up 1%. second time in a week that that really happened. the push/pull is the same. there was a perception out there that we had a little bit of clear path ahead of us. good news was going to be good news for the economy because the fed was sidelining itself. maybe the fed is trying to nudge the market's perception of that a little in their direction and you've been talking about the flattening yield curve. there really has been no great demand for stocks. i would say below the surface, just a quick note, the cyclical areas didn't have as bad a day. it was the yield stocks. >> defensive type plays too. you think someone would go there
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to be safe. what are they trying to do? are they basically just saying we're going to go in june whether you believe it or not? >> they've been saying the same thing for several weeks now. tl june meeting is live and it's on the table. you heard from president lockha lockhart, but we also heard this is underlooked or overlooked. also saying he felt like he could be ready to move within the next few meetings. he's someone who sat on the sidelines in march and march felt like because of the global uncertainty and the risks that were out there that he did not support a rate hike in march, but now he's sort of shifting and saying he feels like those risks have subsided. he feels like he could be ready. the inflation numbers, again, that we saw today. >> right. >> showing that the economy is
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growing and showing that the dissipation of the impact of gas prices and the stronger dollar is finally starting to feed through. >> and let's actually show two more voices on this. the data was looked at this morning. there were three different reports. they mentioned industrial production and housing starts and said, hey, it's clear to him, anyway, that this data continues to improve. he expects two to three rate hike this year but contrast that jason schenker cease plenty of reason to be concerned. the point being, charlie, you know, the fed may be nudging us toward this idea of rate hikes but people really, really aren't sure what to do about it. where does it leave you as an investor? >> that's what causes volatility when what everybody knows turns
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out not to be true. i think those were fundamentally wrong assumptions and they're starting to come through. health care costs are going up and try putting your kid through college. it's the definition of inflation. so that's starting to push back on what everybody knew and that's what's causing this volatility. >> guy, would you take the other side of that? >> i agree with some of those things, absolutely. i'm another going to take the other side. i'm going to talk about what i think is going on. i think the data suggests that, yeah, they have to do something. it's what are they concerned with. you know, if their fear is jostling the markets, then my sense is they do nothing. but they really should be market -- they should have no dogma when it comes to the market. they should be market agnostic.
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i mean as ylan jefust said, thas going to continue to go that way and it at some point becomes inverted. not a good thing for the economy in my opinion. the back end is stubbornly low and will continue go lower. listen to some of the things george soros said. it's not me. it's george soros. he's somewhat squared about the environmental as well. i think they should have moved a long time ago. i think their window opened and closed but i think they're going to raise rates into an earnings and revenue recession and that doesn't all go well for the broader market. >> actually, guy, they did that in december and the good news would be ahead of another rate rise, the problem is for the markets at these levels is that
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the chain reaction of greater expectation of a near term fed rate high, does the dollar then take off. does that complement the oil rally, does that take off all the leg of the stool. we just don't know, but that's the fear. >> if we talk about it and the heavy lifting that the fed has to do, this is it. this is them doing the heavy lifting and this is them doing the work to lay the groundwork so that when the meeting comes, they're not boxed into a corner and risk that type of financial turmoil that we saw earlier in the year. >> and, charlie, where does that leave the financials trade, for example, here. >> well, actually that's one of the things i wanted to say. there are a lot of stocks and companies that do better when interest rates go up. insurance companies do much better. you're sick of me saying this but goldman sachs and morgan stanley do better when interest rates are higher. the savers who are a lot of people in this country, do better.
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i think there's going to be sectors, financials in particular, that are going to do better as rates go up here. >> any others that you would call out here? it does seem like there's a lot predicated on the yielding parts of the market and what happens to those, charlie? >> you know, there aren't a lot of spaces that are real cheap. financials are, i would say, old tech is a space that will do pretty well as interest rates go up a little bit, but i really just want to highlight that utilities will do poorly. the stocks that act like bonds will do poorly. that's utilities, that's some of these large cap names with big dividend yields and financials are really going to be the stars here. >> and what is it? i mean if there were to be a factor that all of a sudden upsets the apple cart here, charlie, and everyone's starting to get their head around this idea of maybe a rate hike but it's not fully priced in, is it a data disappointment? if we hear from janet yellen at the end of the month and she walks us back, it's all bets are off? >> so obviously if the dollar were to strengthen here, by the
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way, with the dollar weakening, we're basically back to where we were a year ago versus the euro. so a lot of the corporate numbers that have this headwind and foreign currency are going to start to have a tailwind. if that went the other way, i think that would be a problem for a lot of things, for oil, for commodities, and for the market as a whole. >> stocks may have been in the red today but gold and oil prices do keep moving higher. let's get to jackie deangelis with more on this. good afternoon, jackie. >> gold trading, getting a little bit of a bid, certainly looking like it's going to make a run for 1,300. it's a safe haven. as you see them rotating out of equities, they're buying into gold. the anticipation is the dollar will remain weak and the fed will stay dovish to keep gold prices supported. 1350 s it in the cards? consensus right now says yes, although, when we hit these key technical levels we see a little
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resistance and a slap back but oil could continue to move higher. meantime continuing in the after hours session. we haven't seen these prices since last october. it's a story of supply right now, but a little different than i've been telling it to you in the past. right now we're worried about outages, outages that could phone dhally impact the glut we've been talking about. so we have the problems in canada with the wildfires. we know that problem will go online. we're worried about venezuela, nigeria right now, and also potentially looking at russian production cutting back. on the other hand you've got the iraqis, libyans and iranians wanting to boost and everybody is wondering if they're going to boost now that shale is pricing at $50 again. the question is are the outages more significant than the increases? we just don't know right now and we don't know how quickly the outages will be resolved. two other important factors you
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need to consider, the dollar in the oil trade, perceived dovish fed is going to continue to boost these prices ads well as we may see an agreement at the opec meeting on june 2nd but don't hold your breath. opec producers have invited them to converse as well to pick up the talks at do ha. but if it's coming down does opec need to act and bring its production down at this point? so many variables right now men wheb it comes to the crude oil trade. >> i know. my head is spinning. thank you, jackie. it's interesting. you saw oil transports moving up in tandem. >> without a doubt. you do have a lot of financial momentum. they set up the supply and demand right now. you have a lot of speculative money saying, okay, this might be the new trend. i think with gold that's particularly the case right now. you actually had the highest of the net long position among noncommercial gold traders in four or five years.
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>> that's the other thing i'm scratching my head about. you have this huge net long gold position that people at least today are talking, okay, the fed could go. is one side of that wrong or -- >> well t net long goal position is a lagging indicator of the dollar's going to be weak and the fed's on hold. we're going to get that weekly data in a couple of days. >> guy? >> maybe it's not a u.s. dollar play at all. maybe they're seeing what's going on globally. negative interest rates and it's a play on fiat currencies. you talk about the gold market, but what we don't talk about is the physical gold market which could not be tighter, and there are central banks that are actually thwarting gold. and i'm not one of these wacko gold nuts. i'm not. i traded it for a long time. i go back to what charlie said. yeah, i agree. if the rates go higher, it should be good for the banks, but it's got to be the right end of the curve. what you're going to see is the front end going up and the back end continuing to get ratcheted
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down. that's not a healthy environmental for banks. that's what's been happening and in my opinion that's what's going to continue to happen. >> do you want to respond to that, charlie? >> morgan stanley is forgiving fees because all of their customers, they can't charge fees on the cash balances. even if the short end of the term comes up and money market rates become normal, they can start charging fees again. so even with flat curve, morgan stanley will make a lot more money, insurance companies will make a lot more money, even with a flatter curve. >> that's a good point. >> and we still do have one percentage point to go to get to inverted term. >> yep, yep. >> yes, it's flat. the rest of the world is dragging that long end down, but i don't think it's necessarily recession watch. >> by the way, it was also interesting today coming into the market. there was this huge dell debt offering. so, again, whether it was corporate issues in europe because the ecb is doing what it's doing, whether there's issuance here because people
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think they can get a high yield on an investment grade offering, what do you think? >> you know, just obviously scarcity of yield. but also just in general, there's lthere e there's liquidity out there. time warner, that's going to be tens of millions in cash sloshing out there. it's out there. dell is a definitely unique case. it has a higher yeel. i think in general, this demand for credit is something that while it keeps going on acts as a lubricant. >> finally, ylan, does this set it up for the chairwoman herself? does she either put the period on this sentence or signal that maybe, you know, not at so fast on these rate hikes? >> that's what i would expect. she actually has two speeches coming up. she has one at the end of the month and then she actually has an official economic outlook speech, i believe it's on june 6th, which i think is the day before the fed goes into blackout. so she will be having the last word there on what happens in
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the june meeting. i will pause with this, though. if they get to the june meeting and there is a possibility around brexit and financial turmoil they had not expected, that would not lie off the table. and that would give them the benefit of moving. tee them up in moon and seth it. >> no press conference? it's crazy. >> right now even with the increase in june, it's still a long shot, right? >> right. >> you still have to have time to get the market around. >> so interesting. may we live in dangerous times. charlie, guy, thank you. we'll let you go, guy, and get ready for the show. >> thanks, kel. >> "fast money" is coming up at 5:00 p.m. they're talking devaluation. aswath damod aswath damoamodaran says amazon should be selling at half sfloo
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welcome back. today's market selloff is the latest chapter in the retail route going through the economy. some retail watchers do not see a strong future for the mall concept. joining us now is nate "forbes." developer, owner, and operator of malls. you should feel like, you know, should we yut the term embattled? >> you know, the whole sector is being dragged down and i think we're at a time when they're trying to determine what the future of the mall business is and how we marry the different omnichannels that exist between online and bricks and mortar. >> you operate somerset in detroit, orlando in palm beach, waterside in naples, all of this which have a high end property and have fast fashion concepts. so what do you see in terms of
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just the traffic trends at your malls? the shopping trends? and what is the consumer doing and looking for? >> i think the consumer is looking to satisfy their needs in a very service orien tated way and a fast way to reach the goods to their homes as quickly as they can. when you have luxury brands, they're a little bit insulated from the broader market. in the advent and kind of the discovery of the fast fashion has been a way to get the runway fashions into the stores in a much quicker time frame p when you marry luxury with fast fashion, u i think you have a recipe for drawing people continually into the briks and mortar business. >> when is the last time you were in a shopping mall? >> actually just last weekend. i went to a target in a shopping mall. i'm curious. macy's had pointed to its international station.
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what are you guys seeing in terms of the international shopper? >> i think it depends on geography. you're seeing that kind of decline. so you have to kind of bring in other elements to draw your local customer base and regional customer base to the bricks and mortar business. >> you know, a big part of the story when it comes to some of the department stores, there's a whole joint venture. there's a general idea of repurposes mall properties. is that something -- is that something that seems like a good opportunity or something that has to be done at this stage? >> i think it's something you're forced to deal with meaning when you have an anchor store, you've about got to repurpose that building, and what developers are looking for today is a way to repurpose those buildings with attractions and real draws to a shopping center, whether that includes food,
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entertainment, fast fashion retailers, real destinations that pull people and try to increase the traffic generation to their shopping destinations. >> and also generation z as they're being called right now, we've heard how they change the shopping experience, they're focused on online shopping, online buying. what are you seeing for the generation that comes behind the millennials? what do you do to draw them in? >> i'll tell you, that's an interesting story. they took their 12-year-old daughter to a mall and they happened to shop at justice kwh is a store for kids and walking through the shopping center, they said, mom, i didn't know justice has stores in malls. i thought they were only online. here's a 12-year-old child so used to shopping with the technology and mobile device, our challenge in moving forward is how do we cultivate that customer from being a youth and as they go through the period and beyond, how do they shop at
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bricks and mortar? again, it's that omnichannel transition that we've got focus on as an industry as we move forward? >> it's like the store is the new virtual reality. >> i'll tell you, that's a really interesting concept how virtual reality plays in into this whole shopping experience moving forward. >> we have earnings coming up this week. we're still going to hear from walmart, lowe's, gap, urban, l brands. if they continue to come out and say they're going to continue to close locations and consolidating, what does that mean for your malls? >> we're trying to find a new norm. once we see a new norm, we'll see comp increases moving forward once we hit that new norm. what happened in the last five years is we might have had a little overexpansion from the retail store base and now you're seeing people exit kind of the b and c tier malls. the a tier malls are holding their own. the online shopping is
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increasing. the investment in online shopping is increasing from the retailers, so what happens as that moves forward is anybody's guess, but we've got to to figure out a way as we move into the future to reach our consumers, meet their tastes and needs and give them a compelling reason to come to brick and mortar. >> all right. nate, good luck on thachlt nate "forbes" there. we have an alert on the russian doping scandal. what's happening? >> the justice department has opened and zbrgs into state sponsored doping allegedly by dozens of russian tleets. "the new york times" saying two people familiar with the case say the investigation is centered out of the u.s. attorney's office. they're officially in this scandal that's burgeoningover the past several months is a potential new development here, but one of the key questions going forward is whether there was a u.s. nexus for u.s. legal
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jurisdiction here. were there u.s. officials involved in the doping, for example, did some of the payments for alleged drugs come through the banking system and what nexus would they have to begin that investigation. an expanding inquiry here, kelly, into russian alleged doping. >> yeah, with just a couple of months left to go until the olympics, eamon. where do we stand on them there? >> that's a good question to ban olympic athletes. but all of that is to be determined. >> all right. thanks, eamon. >> you bet. >> eamon javers. we're going to get a check on the biggest movers for you next and what's behind this week's volatility and also coming up, could another pair of primary wins by bernie sanders start to make hillary clinton more nervous? we'll have the latest from the campaign trail when we come right back.
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welcome back. nasdaq down 1.25%. bertha coombs has more. bertha? >> the nasdaq itself moved just off correction territory down about 9.9% from its july high. about a year ago we were talking about the nasdaq closing at 5,000, regaining that level. and it's just been under water. one of the big problems has been small caps actually. small caps underperforming.
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small caps have been in correction territory, near bear market territory for some time and today was no exception. that was the biggest drag if you were going to look at a class of stocks as far as sectors are concerned. biotechs continue to be under water here. and the biotech today, apart from the decline not so steep but also not much interest in trading volume. only about two-thirds of the annual volume we've seen over the last 30 days or so, which is an interesting thing because tomorrow we're going to get a very interesting thing on biotech. we're going to get the abstracts that will be presented at the june conference on oncology, and that often moves stocks. so it looks as though investors are taking a pause ahead of what could be a big stock moving event tomorrow. tech, though, was really the drag. apple started off in the green today, getting a bit of momentum still from that investment from warren buffett's berkshire
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hathaway, but i it lost ground for the first time in three sessions and we saw the fang stocks continuing to be a drag as well. they're just not getting the movement, even when they've gotten announcements. facebook tomorrow markets the anniversary of going public here at the nasdaq. it's near all-time highs but these days it continues to also be negative on sentiment. one of the areas that did buck the trend, chinese technology had posted better than expected earnings, and that carried over to some of the others in this space. back to you. >> here's a look at the volatility index that spiked 16 at its high today. first time since earlier this month. brian joins us. is this all the feds are doing or what's going on here? >> you mentioned the vix hitting 16. you look at six out of the last
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seven trading days, the s&p has swung 1% up or down. when you get that level of volatility in the market, you start to get fear. it's starting to spill over into the equities market. there is skom ore where the market is going. >> you look at all these guys, they're down significantly. when you see them making a move, the rest of the market seemed to wake up and follow suit down to the downside. i think what's going on here as you look at commodity prices since april 1st, you talk about corn, wheat, soybeans, oil, all of them are 10%. i think they're waking up. they're saying, hey, i think the fed needs to wake up. that's going to spill over, maybe provide a tax to consumers. home depot earnings, they look good, but yet that stock was
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down. certainly they're getting concerned with what the fed is going to do. >> brian, you mentioned the kind of vibrations in the market, the up/down moves day to day. on the other hand, we've been trapped in this for three months and there's not a lot of net volatility. there's a lot of bouncing around here. meanwhile there seems to be tremendous demand for volatility protection. you have a lot of volatility like the vsx and the vix futures and all these things that people basically want to use to play increasing volatility. if volatility were to come in a real way, would it be a surprise to the market? >> well, i this i the market is starting to price in that market now. i this i what you see is if you look back, let's say, january, we had this kind of volatility action, tight range but day-to-day interaction was moving 1% like we're seeing. it's normal once you get this volatility day to day, if you get a breakdown to the downside, you get this breakdown, i think we can instantly trade below 2,000 and maybe head to 1980 on
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the s&p, and i think the traders are putting that protection into play in case we get that. maybe we're seeing that now. >> brian, thank you for joining us. adding some color on that, brian suntland. a man drove a pickup truck onto the national mall and then called the police believing he was exposed to anthrax. he was detained by officers shortly after for his own good. hazmat teams zbran searching the truck. the senate paving the way for approval of 1.1 billion dollar to battle the zika virus, well in what is legislation pending in the house. by 68/29 votes they limited the debate on the measure clearing the way for likely approval this week. mexican president enrique has began legalizing gay marriage.
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he recognized last year restriktding laws to an panhandle a woman were understand constitutional. a really big key. it's the world's biggest key. it exceeds 22 feet in length and nine feet in width. it took 45 days to complete and was built completely out of steal. the key was part of a commemoration of the 68th anniversary of the 1948 palestini palestinian exodus. >> i'm speechless. >> absolutely. >> thank you so much. twitter making a big move. the social media company won't count photos links as character limits. we'll see if it helps their problems of growing users when we come right back. 4
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♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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shoshow me more like this.e. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. . a look at how we finish on wall street. the dow dropped. it was down 240 i thought near the close. maybe it was 220. in any case what started as a weak session rapidly got worse. s&p was down 19, nasdaq down 59. twitter, the tech company, has been criticized lately for lacking innovation and now reports are surfacing it will no longer count links and urls in
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its 140-count limit. we'll see if this turns things often. great to have you with us. >> great to be here. >> it improves the experience, right? >> it might improve the experience but it's innovate or die time. that's not it. they don't know what twitter is for. u don't see this bringing it to the platform. >> donald trump knows what twitter is for. there are ways this is ingrained in our lives and hartley day goes by we don't read a quote from someone on twitter. >> you and i in the news media, it's invaluable. but this is a classic problem. it's a tiny tim. a tiny addressable market for
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media types like ous but the masses have no clue. you could do a quick experiment. ask any person on the street what's snapchat's for? disappearancing photos. vine, looping. facebook, connect with family and friend, linkedin, business connections. twitter. live? i think there's a big confusion about the mass appeal. >> let's bring in the panel. if you define the fact that there's not clarity on most people's part about what twitter is for, i always feel like there's a perception of what they're for. what are those obvious things if there aren't? >> i think there's value in a network. they've proven that. they can tiez to this network. you've got to engage in your faithful followers that monetizes them more effectively. would you pay for access to realtime breaking news on twitter in some way shape or form? i would.
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i think it's key value is that there's no better place to get [ ing insights and news. but the problem is i don't think that appeals to the masses. it's our business so we care about that so we're probably willing to pay for that. but will everyone else? not when you have other news feeds. >> it sounds like what we're fundamentally askinging is can twitter make money as a news organization. you know, i was interestied wit the news of who they were bringing on. is that an acknowledgement they're more of an old media company than the tech sector they once were? ? i think it reports to being a new media company. but better boards don't make better products. i don't think a new board member or independent board members are going to change the fundamental problem. i do think twitter's future has to be in some way connected to media. it has to be. >> all right.
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lou basenase, thank you. we have a news report to get to from susan lee. >> we have jpm raising their dividends up 44 cents. that's an increase of 9% payable on july 31st at the end of the month. back to you. >> thank you, susan. looking now to see what kind of yield we're even talking about with some of these. that's about the increase you would expect based on how fast they're grewing. >> there was a period on which there was a bat on their neck about what they could do. they have the stress test coming up. >> jpmorgan has a bit of a freer hand because they've been allowed to pay out more as opposed to citigroup who has low yields. so to me it sort of is reinforcing the idea that jp more gab is kind of the anointed bank in this context. >> true. it could be a big night for
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bernie sanders meanwhile. kentucky and oregon holding their priers today and the presidential candidate from vermont is widely expected to win. what it means for his campaign and for hillary clinton's is next. also brian grazer is an award winning producer and author. just be curious. if you're curious, he'll join us live at the new york stock exchange coming up. you're watching cnbc, first in business worldwide. re you worki? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
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welcome back. oil managing te ining to buck. we have a market alert now on the commodity. susan lee, what can you tell us? >> we even got the latest from american petroleum. it look like crude, gasoline declining. dropping to 1.1 million barrels in a week. when it comes to gasoline, this is kind of surprising. gold topaz lean fell 1.9 million barrels compared with the analysts. analyst expectations calling for 150 thousand barrel drawdown and we saw the wti still near the highs of the session. back to you, kelly. >> thank you, susan. listen, you want to see those drawdowns. >> you've seen them a couple of weeks in a row now. it seems that is supplier response that everyone is saying, it's not coming, you don't know if the market price
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itself is going to outrun the data, but seemingly not yet. >> part of the discussion, we've had a chat about different things going into the dollar, macrothings. certainly on the supply and demand, again, going back to when we spoke to jeff uppen is this idea of can you flip a switch when oil goes back to 50 and all of a sudden get online again. it's not clear. there are people who say you can. and that's going the keep the price down. so when it moves, it can go up. >> i've actually experienced something similar in the mining industry. i was out in minnesota earlier this year and the iron ore mines have been idle. they say once we're called back online, it's not going to be that quick. again, you can't flip that switch. one quick thing on oil prices. one thing we saw in the inflation is gas prices which really drove that up. as a consumer, we saw how much of that gas savings they actually spend when gas prices are falling. now that they're heading the
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other way, are we going to see an impact on spending. that's a good point. senator bernie sanders hoping to extend his recent winning streak. let's get to our john harwood with the latest from the campaign trail. hi, john. >> hi, kelly. what hillary clinton is going to try to do tonight is salvage a split. she's expected to lose in oregon but she's invef vested time and resources in kentucky hoping to break that sanders winning streak. she's deployed in that process bill clinton, the former president, trying to use his economic credentials as a celling point in this traditionally red state. here's bill clinton in puerto rico carrying the caucuses in june. >> i have been asked to be ginn the job of trying to help those left out economically. i think it's very, very important.
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i go to places that don't vote for democrats anymore and i say i don't care who you vote for. if you've about got an economic problem, a drug problem, if your people aren't getting a decent education, you don't have a bright future, you deserve to go along. >> now, what hillary carolina tonight wants do as soon as possible is focus on it. she's got a lead of only three points over that poll. the problem for it is, a, sanders. just a few minutes ago bernie sanders put out a statement saying the democratic party has to decide if it's going to let new people in. he did not sound like he was going to step down from his fight. that's a big concern for democrats, kelly.
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>> john, thank you. i'll be interested to see how the results come in. the veteran move producer brian grazer still believes despite the box office returns movies are one of the best businesses to be in. here he is making his way into post 9. coming up right after this on "closing bell." 4
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welcome back. it wasn't a good day in the markets. it wasn't for the parent companies of movie studios either. good news may be around the corner. movie season kicking off in a couple of weeks. brian grazer is a best-selling author with a curious mind, the secret to a bigger life available in paperback. he joins us here at post 9. welcome back. >> thanks. thanks for having me again. >> in the book you talk about
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sitting down with a different person every two weeks. some of these people, steve jobs, princess diana, ronald reagan, serena williams, michael jackson, where is my invite? >> it's coming. how about in two weeks? two weeks from now. >> tell us about the movie business. why are you pivoting to tv? >> the movie business, the compensation structure has changed. and so it's better to not have overall deals in the movie business, and to auction all of your projects to all of the different platforms, including theatrical exhibitions. instead of having a first look, it's a better thing to have control over your ip, and then auction it to the most compatible and best movie company or platform. >> by the way, coming out of cannes, amazon may be one of those places you go to. how do you find working with
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amazon or netflix. >> with netflix, i did arrested development. first it was on fox then it went to netflix. they're a great company to work with. they order full series right away. and then they stream it. if your show makes sense, as a stream show, that's the perfect platform, or environment for it. >> you're bullish -- >> as far as me, actually, this year i've produced four movies that are coming out, one with tom cruise called american made, one with tom hanks, actually, that's a sequel to the da vinci code called inferno, and one with matthew mcconaughey in capetown based on dark tower, a stephen king novel. in television, television is really a great place to be right now. because it captures the sensibility of the great filmmakers in the '70s and '80s. they're character-driven pieces. right now i'm doing 24, empire,
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and shots fired. and then some event-driven stuff. >> there's a piece today based around the tone of the upfronts of the networks, talking about how many revivals of old series are going on, too. is that a short-cut for people to say, you're familiar with this name already, so we'll give you another version of it? >> it's a version of that. differentiation has become the key thing right now. it's always been at the heartbeat of what we're doing with movies. movies are an explosive opening. if you miss that explosive opening, you could lose $30 million to $50 million almost immediately. television faces the same thing because there's so much content by so many different people. there is a differentiation. it's critical. >> what do these live event type things you're talking about here? you look across the media platforms these days, whether it's facebook or twitter, it's
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all about live. i was in "the wall street journal," and there's eight pages of an s.a.p. ad that's all about live. >> well, live events that are in demand are really in demand. it's magnified by ten-fold, because it's that content that has its own perishability, and it becomes something like tweeted, or high social media content. that's why sporting events, anything that has an unpredictability to it. and that's why, like i said, sporting events, or concerts. in the case of shows like empire, or what was once 24, now the new 24, they have cliff hangers. that becomes something that -- >> do you want people to watch it, like the old days? they get kind of a live thing, people gathering around and
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sharing on media? >> yes, definitely. >> and watching -- >> you have these polish hit moments. >> i think the control room -- >> exactly. >> brian, thank you so much for joining us. we look forward to all that you're doing. financial tv here is live. one of these unpredictable moments, too, as we're all finding out. the new book is the curious mind, the secret to a bigger life, brian grazer. jeffrey bewkes tomorrow. we're two trading days down. should we expect another volatile day tomorrow? new york, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox.
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welcome back. we're starting to figure it out. we have a big up day, we have a big down day. what happens next? >> it might be to determined by the fed minutes tomorrow. until 2:00, or whatever time they're released, i think we'll be speculating whether there was a more hawkish tone in the meeting, that these are now the minutes for. i think the market is a little bit of two minds about this. they want the conditions where the fed would have clearance to move, but they don't necessarily want them to be in a hurry, or
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to actually jeopardize the market. >> the rate hike is supposed to be a signal of an improving economy. i'll be in lockup waiting for them to come out. and the vice chair of the fed will be speaking later this week as well. in light of what we've heard from the other fed presidents, this week and today and yesterday, it will be important. >> the original four meetings, guy, right? back in december, january, whenever it was -- >> consistently more hawkish than the chair. who's going to win the saddle here. >> he was partly hawkish toward the beginning of this phase because he wanted to prevent financial bubbles, and wanted to get in the way of the market getting overconfident. i don't think we're at much risk of that right now. >> and we toppled the apple cart. retail earnings continue. how important is it going to be when we start hearing from the likes of l brand? >> i think it's a continuing story. in other words, basically all-encompassing problem with clothing, and only clothing. >> exactly.
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walmart will be interesting. but in a different way. we lump it all together. but it feels like the whole thing is fragmenting. that does it for us. thank you for joining me. a crazy day for the markets. that does it for "closing bell." "fast money" begins right now. "fast money" does start right now. i'm melissa lee. the traders on the desk, tim, dan and guy. worst day in over a month. the man everyone looks to to understand the market said amazon is worth half of where it's trading right now. what is he looking at that no one else is? we'll ask him. later, one group of stocks is doing something very extreme. and it could signal the perfect buying opportunity. we'll give you the name. we start off the et


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