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tv   Closing Bell  CNBC  May 20, 2016 3:00pm-5:01pm EDT

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>> i bet we'll have $500 in it by the time of the fed meeting. >> i bet we will. >> and we can take it and go to mcdonald's and up their stock. >> have a great weekend, everybody. >> "closing bell" starts now. four, three, two -- hi, everybody a, and welcom to the "closing bell." i'm kelly evans. welcome to the new york stock exchange that i'm bill griffeth. the dow could close down for the fourth consecutive week, something that hasn't happened since october of 2014. a couple of years there. we'll take you through the final hours of trading. >> and a new report that tesla suppliers are getting nervous about the model 3 production target. we've got news on the expectations. >> this is like a senior thesis. you've got a very ambitious thesis planned and the deadline is coming. you'd better plan for this.
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>> yahoo! bids, david faber says they're in the range of $3 billion to $4 billion, but will marissa want to sell at that price, coming up. >> carmelo anthony getting into it with macy's. there's one league that's in a laeg of its own. >> the shoe game is a little bit different. it's the right to consumers. i don't think people are going into stores buying shoes. everything is job line, websites, apps. >> he had more to say about that, too. we'll have that coming up after the bell. also including why he's wary of investing. remember his tech startup. >> he reminds me of kobe. very, very bright guy, right, playing basketball. let's start with oil. it's climbed more than 3% just this week, but is this recent surge in the commodity about to
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take a turn lower. let's bring in our friend from rbc capital markets. we're getting close to that magical $50 a barrel market. what do you think? >> that could be sort of weighing down on prices once you get to the 50, 51, 52. but the thing to watch is we're having mounting supply disruptions. i mean canada still remains down by over a million barrels. will probably come back in the next couple of weeks. we should be hanging out in this price or moving higher actually. >> even though in the past, helima, we started to peak. >> yeah, but we didn't have this kind of supply disruption. nigeria is game-changer. if we're going to be going down
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into peak season of nigeria, we have to stay at this price or go higher. what about iran gearing up at the same time? >> great question. i think they're reaching their capacity right now. they're not saying they're willing to freeze production. we think it's a sign they're probably capping out what they can bring on barring a wave of new foreign investment. >> what's going on in terms of saudi arabia. there were reports of how much u.s. treasury debt they were holding. there have been other reports about their finances or iouss be paid. how does that go back to what they might do going forward with their oil production? >> saudis have been talking about it. they keep saying everything is awesome in saudi arabia, but you get these reports about delays in contract payments and you start to wonder is there a little bit of a nightmare behind that closet. so i do think the saudis have to
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be concerned. will the population accept austerity measures. i don't expect them to change their positions in the june meeting but they're implying if they get a bit of a harder landing there. >> you say there could be a point where the price would go lower. what would cause that? if we get to 50 durjts that bring some u.s. producers back into the equation? >> some have talked about sort of hedging production once you get into the 50s, but it will take time to bring that production back online. fear of producer hedging would cap the upside if you get -- you know, if nigeria starts to come back. but, again, i think the outages are the important thing to watch. if we stay at this level of out alk in nigeria, that could keep us in this price rage or higher. what about our neighbors to the north? go into more detail if you could about how much supply has been affected by these wildfires and what that might have to do with
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the price here longer term? >> i mean right now we think it's a little over a million. it's been basically shut in because of these fires. the companies do woonlt to restart so we expect that over the next couple of weeks you will start to see canadian production come back online. you're all subject to changes in weather. we can't really predict the day it's going to come back obviously. >> thank you. >> thanks, helima, very much. >> let's get to the fed now, which has caused quite a stir in the markets this week and whether its standards for a rate hike might be lower than you might expect. bob liesman has more. >> is it strong? the fed market might have to get used to what is strong. here's the reason. the fed just has a lower standard in the market when it comes to jobs. while markets are either
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200,000, beneficials are the low lower threshold. the question will be not if it's strong but strong enough for the fed to hike. rosen gren said, quote, given broad demographic trends, normal or trend payroll employment growth is now between 80,000 and 100,000 jobs a month. and then look at january it yelin, the fed chair. she's just around 100,000. so everybody wants more job growth. it's good for corporate profits and good for the economy. but if you want to know what's good enough for the fed, it's best to lower your standard and they of job growth the way the fed does, bill. >> steve, if i may, there's one thing about this that might be a problem. it's been so strong. you know, so regardless of
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whether 80,000 is the bar that needs to be cleared, the mere fact that it's decelerating is a problem from a cyclical view, right? >> no, not necessarily. indeed, kelly, a lot of wall street economists except us to downshift to a more sustainable rate. nobody expects 200,000. there is a large pool of workers who maybe have dropped out of the work force or could be brought back in that are probably keeping this up at this point, but you raise the other side of the coin here, which is that what is strong enough for the market, in other words, that 200,000 rate, that could become increasingly worrisome to the fed. >> steve, before you go, i saw a headline that said the new york feds' instand read on gdp show 1.7%, which is up just a half a percentage from last week hochlt u is that possible? >> you've had a lot of decent data. you've had the housing data today. it's come in pretty well. you have the retail sales numbers. they do it every week. i want to show you our cnbc wrap
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it up date, bill. the new york fed's just a little bit late to the party. we're coming out at 2.5%. and you see q1 tracking at 2.9. there's the rebound. it has a very long way to go with second quarter gdp. it's justified a decent rebound in the second quarter so far. >> the question is that enough? >> i think it is. i think 2% is a good mark on gdp and i think 150, perhaps, is probably good enough on jobs. >> all right. >> thank you, steve. steve liesman. >> we'll see what happens. let's get to our "closing bell" exchange with friday, dow up 32 points. it was up 36 points at its peak. rene norris is with us and jack perusian is with us and keith bliss from cuttonen company is
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at post 9. keith, after all the volatility, here we are on this friday. what did we learn this week given what's happened with the dollar and the fed oil and all that? ? >> what we learned is the fed is going to continue to keep the market off blachblts it's remarkable to me you have some of the most dovish members in the policy making saying they're okay with two, maybe even three interest rate increases in 2016. that is vastly different than what they've been saying. you can see some of the internal indicators inside the market. the fact remains even though we've had a modest rally, we track this back. we have not moved anywhere from where we were in the fall of 2014. i think what's going to continue to happen, we're going to move through. we'vt a couple of major
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things coming up. in fact, we're seeing that in the past few sessions. buying has been somewhat anemic and not a lot are willing to put positions on it. >> jack, when do you think we might test those about this time? >> you know, i think it's probably going to be a few months unfortunately. there are a few things we're not prepared for. if you listen to people like art cashin who you've had on your show many times, he's indicative of what the fed thinks. that means the fed is not going to move. between now and then we're going to move into some rough patches. underwhat's happened there, if the fed moves two or three times, we're talking about a multiple that's way too rich to be sustainable. >> don't you think that's what
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happened on wednesday. the dow strengthened, gold went down. all yield lszs went up and the stockmarket went up? >> you know what that was? everybody will tell you. markets given us warning signals. that was the warning signal. it was telling you that the market was unprepared so when the fed does make some kind of a mood. if they do it in june, we could see a move slower in stocks. >> so, rene, where are you advising clients to be bracing for all of this? >> i've been kind of preparing clients since the beginning of the year. i've had to change my tune this year. we've been raising cash since the beginning of the year, more for opportunities than anything else. we want to use the summer slump to buy some of the great disrupters in this space.
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>> really. >> yes. >> can you give us a couple of examples on your shopping list? >> i can't give you specific names, but i will say the high flyers that we've seen, for example, some of the consumer discretionaries that have been beaten up pretty bad in the financial, i would be looking this summer to start adding to positions. i think that the september, october, november months will be ones to remember. most of the things that are going to happen, i think, will start in july up to the election. >> you're not buying now. >> no. >> let's face it. they're all pretty crowded trade right now, aren't they? >> they are. we've been lucky to have those in clients' portfolios for some time. we've not been adding to them but we've been putting together our list of issues to buy.
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i think the second quarter numbers are going to be really, really tough. the election is really going to play into this, i think, quite a bit, especially if you have some candidates talking about protectionist policies. that's not going to bode well for american-based multi-national companies who have to import or export their services and sim plies. >> keith i want to point out on another dae when they're outperforming in terms of raw points today, why is that? >> i think you take a look at the transport move, it's getting a little bit of a lift. i they you for pointing that out. you look at the transports. watch the transport, the s&p and vix will follow them. you've about got to watch.
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going forward equity markets hate two things. we're getting both right now. i'd be very cautious and with step to the summer. if they're weak and the fed raised in june, that's a recipe for a bad july. >> i see a nod from jack. those who welcome the fed raised rates and are not worries. it only believes that they're on solid company. our own measurement shows gdp for the second quarter. >> bill, remember, that's going to the best thing in a long time.
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it's like injections of steroids into a patient. once we with draw that,ite going to look sicker. we're going through that and we'll go through it for the next few months. once that happens, you're going to find great ebb questionties. you're going to want to make sure you bought this kit. >> tharchl you all. applied material is one reason why the nape deck is pointing. the nasdaq is up better than 1%. the don's up only 50 points. >> what a story on tesla. the supplier is questioning whether they can meet ceo elon musk's target. phil lebeau looks aet the merits of their arguments when they come back. and the first marathon of
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bidding is other. what she wants to sell parts of the company coming up. you're watching cnbc, first in business worldwide. 4 stephen king, the master of suspense and the macabre. i enjoy keeping people up at night. my analysis shows your stories are actually about human connection, even love. great storytelling needs drama and empathy. my cognitive apis can help any business better connect with its audience. you should try writing a book. find a remote hotel. bring the family.
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. 40 minutes to the close with modest gains for the major averages today although the nasdaq is doing well with a 50-point gain. de deere, though, is falling. it cut its full year profit outlook. lower commodity prices has been hurting farmers' income and there's a glut of unsold machinery. you see deere down by 5.5%.
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>> some are questioning whether elon musk can deliver. phil lebeau has been looking into the story. what did you find, phil? >> kelly, people have been questioning this plan since elon announced it a month, month and a half ago. so the fact that suppliers are going around the country saying we're not sure we'll be able to meet the deadlines for the model 3, not a complete surprise. remember when you look at it, this is a very accelerated timeline for the newest vehicle coming out from tesla. in the next month or two, they're going to lock in on the design and then in 2017 they plan to build about 100,000 model 3s mainly in the second half of the year and then really ramp things up in 2018, hitting production of the model 3, about 400,000. remember, the target for all vehicles produced out at its plants in 2018, a half million vehicles. that's not just the model 3. that's also the model s and x.
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that means they're going to add at least one, maybe two assembly lines, more stamping, another paint job, all the things that go with amping up production. remember, they announced it. about $2 billion is what they're going to need for the production amp. they raised most of the money. it priced at $215 a share. the question now, will tesla be able to meet a very aggressive timeline. even elon musk said it. look, a lot of people are going to struggle to meet the "all parts in" for this vehicle, but we're setting that as a goal at this point. >> elon musk has made his career on one hail mary after another, especially this one. this is the longest hail mary. then you suggest the design hasn't been finalized.
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they don't know what they're going to need from parts suppliers, right? >> right. but it's not going to be a complicated as the other two. the other thing to keep in mind, bill, most have been working with tesla, so they understand how it's supposed to be working. if they can lock it in by june of this year, tesla believes they can get these suppliers up and running by june of next year. nobody disputes it's an aggressive time frame. even elon musk has said that. the question is will we see it happening as quickly as taz la is forecasting. >> if we take him at his word, phil s it possible. i understand other car companies haven't been able to do it this fast, but is it possible for tesla to do it? >> anything is possible. is it possible to have the model built by the second half of next year and some deliveries begin? sure. that's a big difference from, we will have 400,000 build in 2018 and a half million in production
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in 2018. that's really the key question. that's the level of production. it's not whether it can be built or delivered by next year. it's whether or not tesla can deliver as many as it's forecasting. >> yeah, exactly. phil, thank you so much. tesla shares over a small gain last check and there's a little more than 40 minutes go in this market where the nasdaq is up. the dow is up 47. when we come back, amid conflicting reports on how much bidders have been bidding. we're going to talk on whether marissa mayer wants to sell that. >> also coming up. >> it was perfect. the big collaboration just came. >> tmnt is teen aged ninja
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they say it's more broadly emblematic as mike santoli pointed out as to where people have been hiding and ramping up. >> yes, indeed. we're getting value on the yahoo! business. the first round of bids are in the $4 billion to $5 billion, which is higher than the $2 billion to $3 billion number reported earlier by the wa"the street journal". still it's well below activist jeff smith. let's remember. >> somebody could easily pay $2 billion, $3 billion, $5 billion, $8 billion for this asset if they cared enough. it depends what they're going to do with now. >> let's bring in erin griffeth. >> no relation. >> seen your writer. welcome. >> hi. >> where do you see it? on the one hand, it was bidding up d. >> i mean it's really hard to
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tell. there's a lot of noise around this auction. we're seeing reports. i mean in the beginning bankers -- we assumed it was bankers. they could get as much as $10 billion. i think that's a little crazy. the patents are worth $4 billion. i think we're starting to see more realistic numbers but $2 billion is really, really low. >> it behooves anybody. they don't want to show their hand right. >> right. wait for them to narrow it down and then throw in the low ball. >> even at that, nothing has ever been easy for marissa mayer at yahoo! >> right. she's been there three years which is really a long time to put her turnaround in place. her reputation won't be hurt because if she wins she's a hero, she turns it around. if she fails, they'll say, nobody could have saved yahoo!. the reports that came out about her management style and shortcomings kind of shows that maybe her reputation will be
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damaged in the end by this. >> could the business be sold for piecemeal? >> yeah. that's one of the things. they say it's going to be $2 before bl 3rks billion. nobody knows. they'll say take out tumblr and figure out to monetize them, cut costs like crazy. that could be one option that we're talking about here. >> we posed this question earlier. is it possible she doesn't want to sell? >> i think it is definitely possible it doesn't sell. she wants to keep doing her turnaround plan. even though investors hate it and even though they're operating at less than zero, i think she would like to keep her job. >> does that affect the price she could fetch? >> yeah. there were a lot of reports early on she wasn't providing enough information, being transparent, and she made it clear in the last earnings report, listen, i'm taking this seriously, we're trying to sell the company and she let them have four new board members. i think she knows if a private
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equity fi buys this company, she's not going to have this job anymore. >> is this still verizon's to lose? >> you saw what they did with aol and they could do the same thing here with yahoo!. so i think that makes a lot of sense. they talk about warren buffett pairing up with jones. >> alibaba, what happens then? >> well, it's complicated. they're currently trying to spin themselves off from an ally ba pa stake in a very complicated deal. i'm sure there are a lot of lawyers working very hard on the many possibilities and it's beyond my pay grade. >> like we said, nothing has ever been busy for marissa mayer in this deal. >> if verizon buys it, she could
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do well. >> and she could make $55 million? >> she has a huge golden parachute but i think she wants to prove to the world she can actually do this because she's a very determined executive. >> from day one, that's for sure. erin, thank you for joining us. erin griffeth. sue herera has a cnbc news update for us. this after receiving guarantees that guzman would not face the death penalty. his lawyers have 30 days to appeal the decision. houston officials agreeing to drop the charges of him stabbing a 10-year-old boy. this after they found evidence that he was somewhere else when the boy was walking home from school. after overstating fuel
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efficiency. they will receive debit cards between $450 and $900, gm adding it will not have a material impact on its earnings. and an old american airlines building demolished in texas this afternoon. the crews imploded the building to make way for a new american airlines headquarters. the demolition has been in the making for six months. >> there's just nothing cooler than watching that. i saw it live. that was very cool. that's better than watching a slow speed chase on the streets of los angeles. >> we haven't had one in a while. >> thanks, sue. >> you too. >> we're into the closing half hour. we'll tell you what a trader is watching on the close of the final day this week. >> later, apple unveiling a new retail store concept in san francisco, but is it too little
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too late for iphone sales? we'll talk with top analysts and retailers. stay tuned.
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welcome back to "closing bell." we've got a security issue at the white house. president obama is not there. he's goffing at the air force base. this incident began unfolding about 15 minutes ago. you're looking at live pictures. that's one of the white house complexes. you see a lot of police activity there. what we know from a tweet now from the u.s. park police, they're reporting in their tweet that there was a shooting on west executive drive. they say there are en route to 17th and pennsylvania avenues. so that is very, very close to the white house complex. west executive drive actually runs all the way up through the intersection between the white house and the old executive office building now known as the eisenhower executive office building that is adjacent to the white house. so if there was a shooting at that location, we're talking about a situation that's very close to white house indeed. we're seeing videotape shot by reporters on campus at the white house which shones secret
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service agents on extremely high alert with what appears to be sighting rifles up to see what's going on and helicopters ahere to be near the white house campus and we're told that the reporters have been told to go to the basement of the white house and remain in a shelter in place. the white house pool is traveling with the president. they report that they're at andrews air force base. the president, as i said, is not at the white house right now. that's what we know right now. we have an unfolding situation right now. potentially scary situation, but it looks like police are all over it at this point, guys. >> any idea how long ago this happened? >> i would say about 15 minutes ago. i'm just kind of guesstimating here. we saw some tweets from reporters who were being usher down into the basement. i can tell you inside the white house press briefing room, it's very common for the white house to be put on lockdown when there are suspicious packages as we've
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noun the past couple of years, a number of fence jumping incidents. in those situation as what happens is they simply lock the doors and tell everyone to stay in place. it's unusual of what we see in tweets of reporters being told to go to the basement of the white house, that's the lower level and hold there and shelter in place there. that's not necessarily the kind of bash we've seen from the secret service in the past. possibly they're taking this one with more seriousness than the typical misplaced bag on pennsylvania avenue that does happen from time to time at the white house. i can tell you from the posture of the secret service agents in the video, they're taking this very seriously and they're moving in an alert way around the white house grounds. the snipers on the roof of the white house on a regular basis had their long guns up, were using their sights to try to get situational awareness and figure out exactly what's going on and what we're seeing right now is police converging on that area
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below the ellipse. you're looking in those live pictures of the helicopters leaving the ellipse area of the south of the white house. that's a u.s. police helicopter. we'll have to find out who's on board and what hanned. >> eamon javers. thank you. those stocks trading higher today and we've got a lot to think about as far as the price of oil and the fed this week, right? >> oh, sure. and with less than half an hour go in this hour let's bring in st steve grasso. did you see anything?
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>> i did see a little bit of a movement off the highs. approximately about 15 minutes ago when you had just asked when the news came across the tape and i do think that we came off just a bit, but after people analyzed what it is. people will sell first and then ask questions. >> of course. you have the oil and the fed. what you do think is going to be the key driving the stock to close this week into next week? >> it's going to be oil. everything is all linked to the dollar. but the fact that we could not overcome that $50 mark in crude means a lot to me. you had nigeria. you've got the canadian fires. you've got iran still on the table. you've about got libya. so there's a lot of things to be concerned with. and the fact that we could not take out that $50 mark means a lot to me and the bulls should
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question their bullishness. >> really. so i'm just going to say, if we get to $50, that's when stocks tank? >> no. no. no. what i'm saying is i think the market has misinterpreted the rally and crude to be bullish and they've used that as the barometer and when they see crude ticking up, instead of it being an isolated incident and to sell it once it gets to 50, they get misconstrued. i think that's the main thing. watch oil. watch the markets. flat on year, 12.43. i think it will probably rally from here. >> thank you. >> thank you. we'll let you. >> 20 minutes left. the dow up 55 points right now. we'll go live to the nasdaq for a check of the big movers there in just a moment. >> and later -- >> that bubble does make you wary a little bit wlab's going to happen. so we just kind of are taking our time and seeing, you know,
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what's the best fit. >> talking about a tech bubble. new york knicks star carmelo anthony discussion his jitters. you won't want to miss it. that's coming up.
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welcome back. if these hold, it's what's next. what's moving there, bertha? >> everything tech is moving. it's really interesting what a difference a day makes. today we're seeing some risk appetite particularly for large cap tech. cisco had that great report today. we're seeing a bit of the delayed halo effect. apple snaps that five-week losing streak as well. it's up 5% for the week. also netflix having its best weekly gain in about six weeks or so since the start of the quarter. and western digital among the best performers this week here in terms of nasdaq. one part of it having completed its acquisition. today it's getting a little bit of a boost. applied materials with that strong outlook for its third quarter, lifting the entire sector, which this week has a very strong recovery as well, up
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5% overall in the sector for the week, but we've seen a really nice rebound for biotech. and it's not something that is too surprising in that this is the beginning of the lead-up to asco which happens on june 3rd. we had the acquisition in this space. that's again whetting a little bit of risk appetite back into biotech. back to you. >> thanks very much, bertha coombs. let's go back to eamoeamon jave. what do you know? >> pete williams reporting now that the incident occurred outside of the white house grounds on the west side of the complex. they believe that this happened at 17th and e streets which is right adjacent to the white house but not on the white house grounds itself. pete is reporting that one individual has been shot in the chest and has been taken to the hospital. we've also got a tweet from d.c.
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fire and ems with an update saying the shooting was at 17th and e street northwest. one patient transported with critical injuries to a local hospital. obviously you can see the security response there is full bore at the white house and across washington, d.c., at the u.s. capitol just down the road, down pennsylvania avenue. they're saying that a capitol police spokesman says that they're monitoring increased visible presence but all buildings at the capitol remain open on the capitol campus for now. clearly a very visible and tense situation in response to a shooting incident next to and nearby the white house on the west side but outside of the white house grounds itself, bill. >> we're watching markets. as mentioned, there wu a little bit of o a move when the news was first reporting but now investors are shaking it off as this was signs that -- perhaps no immediate risk. >> art cashin just signaled to
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me that the market on closed orders, only $250 million to the sell side. we'll see if that has any impact going into the close. here it is a friday. it could only mean that wall street veteran david darnst will give us his watch list for the week ahead and that will happen when we come back. all across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade.
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welcome back. it could be higher. diana? >> it's because the market needs more homes for sale, simple as that. there's plenty of demand for homes especially on the lower to moderate end. they're flying off the shelves faster than ever because there are so precious few of them. you see where we need the most, is supply is shrinking the most. first-time buyer demand bounced back in april, 32% of all sales but these buyers need lower priced homes. they should be 40% of the market. low inventory continues to push prices higher and the realtors say the gains are accelerating. the median price was $232,500.
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that's up 600% from a year ago. just because the sky's the limit doesn't mean anything. case in point, right here. other homes in this d.c. neighborhood are selling in days. this one was likely priced too high. back to you guys. >> all right, diana. thank you very much. diana in washington. joining us as we head toward the close, we have eight minutes left. >> i understand this is going to be a bilingual set? >> it's taking off good. lead economic indicators, those are looking better. so that's a good backdrop.
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they said when you leave the big apple, you're not going nowhere. without profits the market can't go anywhere. so my acronym for this year is r. r.a.t.e.s. a return to normalization of levels. it seems like the fed meeting, they're left. you can get from an acronym sometimes a way of grachsing these things. >> is this a self serving ak crow name? >> it's an abyss. it goes further down. it cascades down. that's the french term for what acronymic insight is. >> very self-conscious. >> dollar and energy in oil prices. and finally and very importantly bank stocks had a good week. they actually like the higher
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interest rates. >> they love it. >> the dollar going up is not something they want to see. they're trying to tread a very careful path there. "e" is earnings. the biggest thing of all, china said we're going to switch from a escalade, cadillac escalade to driving a chevrolet. that means they're going to switch from monetary stimulus to struks real form. they both use gasoline and debt. but china, i think this is one of the most important things. it's a big shift from their version of larry summers. you saw about this article on the chinese people where he said we're going to move in a different direction. >> right. >> it will be an l-shaped economic recovery, but we're going to shift, and i think that's gotten great global implications as we lead up to this japanese summit may 26, 27. >> what was that phrase in? >> mise en a byam.
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>> i feel like i've lived in an extraprint. >> that's exactly what it is. a hand drawing in a hand drawing in a hand drawing. >> thank you so much. >> thank you so much. >> we have a countdown coming up. >> after the bell, don't miss that one-on-one interview with new york knicks carmelo anthony who it turns out is quite the flourishing businessman. you're watching cnbc, first in business worldwide. checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans
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welcome eamon javers in wa. it appears to be all other. remember, president obama is not at the white house. he's out golfing at the andrews air force base. a white male shot in the chest near a security checkpoint outside the white house compound. we've got a sound bite from an eyewitness who saw it unfolding and talked to nbc news. he here's what he had to say. >> he was carrying a gun. it was a silver gun in clear sight. walked through the fence line. they immediately tried to stop him and came up to him, yelled
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multiple times, stop, stop, stop. he kept ignoring them. drop your gun. and he walked toward the officers. he just kept on walking in. refused to stop. and the officer after they approached about the third in, they shot him. >> and, bill, what we're told is that person has been medevacked to the hospital and officers are now looking for his vehicle somewhere near the white house compound. that's what we know as of right now. >> all right, eamon. thank you do very much. we have a little bit less than a minute. dominic chu. closing out the week. the dow avoiding a five-week slide. >> you can thank applied materials for that. it put in a bid to the semiconductor market. it makes stuff that makes computer chips so all of a sudden a good moving indicator. but, remember, today is also an options day here at the new york stock exchange. we're seeing a bit more volume than we normally would,
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especially around the close right now. but, again, we're well off our highs so far today. >> all right. what to make of a volatile week with oil and the fed. back on the table again maybe for june. they're going to talk about that coming up next here on the "closing bell." have a good weekend, kelly. thank you, bill. welcome to the "closing bell." the dow up 63 points on the bell. that's just over a third of one%. much better parms than the s&p 500. it was up nearly two-thirds of a percent. you heard about it. 1.2%. added 57 points. coming up, basketball star carmelo anthony talks about everything from his business ventures to the teenage mutant
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nip. turtles. we'll tell you that. first joining the panel, mike sal-san tolle along with kevin new mark on a friday and with more on today's action guy adami. it's great to have everybody on board, mike. went out okay here. i guess the nasdaq was the real story. >> it really was in terms of today's action. i think the bigger story really for today is no downside follow-through. you had a lot of these threats where the bottom of this trades threatened to really give way and it didn't happen. i don't know if that means in any larger sense the bears have missed an opportunity here with the fed coming a little bit hawkish, but it does seem as if the market's getting compressed in this range and it probably has to find some reason to break out of it. but so far once again volatility remains very tame and all those things you would look for to say, hey, trouble is brewing, they're not giving you a clear signal. >> a couple of things are happening. may could be the biggest month
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ever for investment grade. "usa today" pointing out a third of cash held by u.s. companies, held by just five of them. the big tech ones you'd expect including aur oracle. and then we come back to campbell soup. everyone looking there. >> we're coming back to campbell soup? you're going back to campbell soup. i'm not going back to campbell soup. the story for me remains the banks and bond market. nobody believes there's go to be any economic drought or any inflation really for the next five or ten years. i mean it's hard to believe we're still in a very odd strange place and that's one reason why the market doesn't go down. when the 30-year bond is yielding, 30-year treasury is yielding plus or minus what the dividend yield is, don't expect a lot to happen. i think that's basically what you're seeing. >> but it almost seems like the
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average is concealing how split people are in a way and we highlighted this earlier in the week. you had a couple of data releases that interpreted on the one hand they were picking up steam and on the other steam, we're heading into a recession. so i think what's interesting, there's a lot more risk kind of embedded in the positioning of this market than people maybe realize. >> i still don't understand what an investor long-term bond is thinking. i don't understand what someone is thinking and i can't understand -- i mean i understand -- i don't understand where they expect to get real positive -- >> no. they're expecting to get their money back. maybe they're expecting a little bit of deflation. but, kelly, to your point in terms of internally what this market is doing. even on a day to day basis, when the market is not moving much on the indention level, it's either telecom, utilities or staples are the leading or bottom sectors. it's not really risk on/risk
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off. >> it's the bond market because of interest rates. they're trading on interest rates. >> on that note, i don't know if we have the graphic. to your point, there was a graphic earlier that showed a 1 percentage point increase in a 40-year japanese bond drops its value by 25% it's crazy. but to own a japanese bond you basically have to believe that they're in a deflationary spiral that they'll never get out of it. >> if we had a one percentage point drop, the value of that thing also explodes, so guy adami, that's what's so interesting. i don't want to say leverage. that's not the right word. but you're exposed to dramatic increases or decreases depending on which way interest rates go. >> i think leverage is a fine word to use. there's a lot of crazy things
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going on. you have to believe in this deflationary cycle continuing in. which, by the way, it shows no signs of abating. the good news for the market today, they're not moving the semiconductors. i know we talked about it yesterday. that stock was up 14%. dragged the whole space up. that's a pretty good sign because a lot of the bears. i was in that camp pointing to the semiconductors is a reason to be negative on the market. there's a comeback there. flip side of the coin. what's the flip side? 210s. your yield -- remember, december '07, what that -- what came out of december 2007. again, not suggesting that's where we are, but that's the last time 210s were here. now flirting with 40 on the downside which potentially could
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bode well for the crude oil. >> where does that leave -- you know, what's interesting is for all this talk about bonds and how you can get really whipsawed around here on whatever happens next with rates, people still don't like stocks. the sentiment is terrible. the outflow continues. >> that's probably the only reason i like them. it's true -- basically the bond market has been for 30 years a one-way bet. i mean nobody has lost really with some one or two exceptions in the past 30 years a lot of money certainly in government bonds. and until that changes there's going to be no reason for people to get out of it. >> hang on one second. we're getting more on the security incident at the white house. ime eamon javers, what can you tell us about this? >> the metropolitan police, d.c. metro police say it was a secret
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service officer who was involved in the incident, not one of their own. a secret service officer. the incident happened as we have been reporting near the white house but outside the white house grounds. this is a heavily fortified area of washington, d.c. there are security entrances to the white house complex at various points along the way there. those are heavily fortified bulletproof glass, et cetera and heavily armed secret service officers there. we know the white male who was struck in the chest has been medevacked away. we'll follow this and bring you more details as we get it, kelly. >> do we have any idea what he was going for, eamon? >> we don't. according to the eyewitness, he brandished what appeared to be a weapon, a silver gun, described as a handgun by one witness, and moved toward the secret service and was told to drop the weapon, told to drop the weapon and told to stop. he did not. at that point, that's when
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officers fired at him. not clear how many rounds were fired. not clear who exactly shot who in all of this. we'll have to parse through all this as we go through the next coming hours to figure that out. but clearly somebody who went up to a checkpoint, a secret service checkpoint and did a thing they tell you never to do, which is fail to obey orders. >> thank you, eamon, for monitoring the situation in washington there. well, between markets and fed minutes, it was a wild week. let's get to dominic chu. next week might bring new surprises and he has a preview of what investors may be watching. hey, dom. >> we're going to see if any of this stuff on the micro and macro next week can break us out of the trading range. let's talk about corporate stories first. you've got 13. the focus will again be on the consumer. on tuesday you've got the likes of auto zone, do-it-yourself
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auto repair. and best buy and tiffany on the luxury side of things on wednesday and costco on wednesday as well. tiffany in focus because of that luxury into the market. we heard richemont could see headwinds. those will be things to watch. on the eco side, the lites here on tuesday, more home sales. the big housing data coming up next week as well. on thursday as usual. jobless claims. durable goods also released on thursday. and then on friday, we'll get the second reading of first quarter gross domestic profit. we'll see if it does any better. on the ecofront. that's what we've got. let's tur to the speakers. here are the three you want to pay attention to. on monday, st. louis fed john bullard and thursday jerome powell and flid, janet yellen herself will be speaking at
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harvard where she'll be receiving an award. all three are voting members of the fo 1c this time around. aisle throw in one more here. we're anticipating what could be one of the biggest ipos of the year if it comes to fruition next week. this is u.s. foods, which would be the second biggest distributor in the united states. they're talking a $21 to $24 price range. if it ranges around there, it would be around a billion dollars. totally $5 billion. if it sticks to that, kelly, guys, it would be the second biggest ipo so far this year and the single biggest nonreal estate envestment trust. back over to you guys. >> i think it's funny, it looks like "us weekly," not us foods.
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>> antem, america's next model. >> those types of deals, they know what they should trade for, knows what they're worth. i don't expect it to have a huge pop or drop. >> guy, what are you going to be watching? >> tiffany's -- well, there are a lot of things next week not to mention dominic chu's unbelievable reporting from the floor. tiffany's has been interesting. since 2015 it the stock has been an unmitigating disaster. it hasn't been that great since. has the high end flattened out or bottomed out? i think it's going to tell the tale next week. >> parting word? >> i don't know when it's going to happen. something's got to give in this
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whole negative interest rate thing. it might take a while. >> we hope the economy is strengthened. >> yeah. it feels like it's going to come from overseas. somewhere around the globe, they realize. the bank of japan is in a total cul-de-sac. they're basically -- everybody's running up against limits. >> they have to start buying corporate bonds first. they're going to take it to the next logical place. >> that's true. thanks for joining us. >> later, kel. >> later, guy. in fact, next hour, they'll be asking thomas lee what he thinks the street is missing about the rally. that's again at 5:00. apple rebuildiunveiling the of its retail stores. should the company be coming up with something more innovative? that's next. carmelo anthony may be a superstar on the basketball court but he's got a key mind for business. first in the business world and
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now fashion. coming up, what inspired his latest fashion and, of course, get his take on the future of the new york knicks. you're watching cnbc first in business worldwide. the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable.
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welcome back. susan li, what's happening? >> we know the oil and gas division has been a drag on mcmoran's earnings. it's mostly on the back of the declining book value of its oil and gas assets. back to you. >> exactly. i wonder if because the stock itself has rebounded as the mining stocks in that whole space has come back, maybe it seems as if they don't necessarily have do this. it seems like it could be a bit of a desperate measure when the overall company might seem like it's in a worse spot. >> apple is gearing up to open a store in san francisco tomorrow. it will include a genus grove and live trees. we're joined by tim ba heron of
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creative strategies and mark cohen now with columbia business school. great to have you both with us. what do you think about this jazzy new store? >> it's a great design. they have these giant doors that open up. the idea is, look, instead of just being a retail scepter, let it be a gathering place. it's one of the most beautifully designed buildings i've seen so far. >> she says she wants people to say to each other, let's meet at apple almost like it's starbucks. does that help the company longer term? >> i think more so than starbucks. they have a higher valued product that's far more important and that customers don't buy their products every
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day as they would if they were buying a cup of coffee at starbucks. look. the apple store is a brilliant 15-year-old strategy. we know how successful they've been. they got it right the first time which is unusual. they've been fastidious about materials and housekeeping. the stores look as fresh and inviting as when they first opened. >> and yet their fortune looks so different than ten years ago. does this jazzy store concept get to the heart of what this company needs to do to stay relevant? >> well, this company is extremely relevant. what i've seen is they've expressed an investment in their own strengths. they're already a community center. they're already a gathering place for customers who do more than just come, look, shop,
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leave. the seating areas that they've apparently created, the incredible expansiveness in lighting and access is an expression of their success to date and you have to give them a tremendous. amount of credit leaning forward. i have to say one more thing. wi don't know whether the rumor of them launching an apple car will ever come true, but if it's actually being considered, e i'm sure this store has a space where that car is going to be showcased. >> what do you guys think? >> i agree with all of that. it's not something that almost any other retailer can take as a model. it's definitely an acknowledgement. my kids ask to go to the apple store to play on the devices. not to buy something. that's a different thing. by far the highest square footage. they're kind of playing from a position of strength. i just don't know if it moves the needle for the overall company. >> that's the issue. >> they have great flagship
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stores but at the end of the day, the company's fortune is not going to rise and fall because they have a new store. >> what do you say, tim? >> it does help them service their customers better and i think that's the real key. their formula lets them come in, touch, play, and get questions answered is why this succeeded in the first place and i think that this type of an environmental is even more conducive for that. >> that's a good point and certainly looks like a need place to hang out. tim, thank you. tim bajarin and mark cohen as well. cyber criminals striking again. coming up, we've got the details on this latest heist and what it says about the safety of our global system. first, nearlying a trillion. up next we'll talk about whether that is a good or bad sign for the economy. stay tuned.
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welcome back. we start with susan li on lending club. >> it's interesting that jeffries has been brought in. he was one of the buyers on some of these loans that led to the ceo'sous ter. there you go. lendingclub looking to get some of its liquidity back on the books. >> this is interesting in terms of what's going on with the
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company in trying to place the loans. >> it's interesting. citigroup was reported to have said, no, we don't want these particular loans originating. obviously we need to have that pipeline open and be able to finance themselves in that way. they might as well have one anchor, you know, kind of firm on the street to do that. >> that's true. i still wonder if that's enough for them. is it shored up enough. >> the problem is that what happens with all financial institutions is when your share price goes from 20 to 4 bucks you get these prices of confidence and that's the kiss of death. >> and if you're a market place lender and the market place moves against you. news out today the americans are carrying nearly a trillion dollars in credit card debt. it's close to the peak of just over a trillion. who does that mean for our economy? great to see you, chris, and do you read this as a good sign or a bad one? >> good to see you, too, kelly. for now it's a good sign.
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it's a sign that consumers are feeling a little bit better. they're more comfortable spending money. and we're coming off a really, really low level historically. >> so i guess the question is, though, we go back to 2008. that's the time when everything started to go wrong, right? while it might be a healthy sign, is it still some sort of like indication that we've gone too far or we've reached this dangerous point in the credit psych snl. >> what's happening is we've now seen credit card balances rise for about a year and a half. they typically do rise during expansions. in fact, before '08 they typically rose during recessions, too, just at a slower pace. right now the rate of growth is relatively staid. it's about 6%.
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people are using credit cards to pick up some of that slack. so i don't think there's anything to worry about just yet. you do want to keep an eye on delinquencies right now. right now they're near historic lows. if those start to pick up. that's when you should start to worry. >> that seems to be the bottom line whefrmt it comes to credit creation, it's good until it's bad. the economy's $2 trillion bigger than it was in 2008. the mortgage debt is about a trillion below what it was in 2008. so as a percentage of the low it seems like household indebtedness is not at a point. >> the sub prime borrowing problem that arose in 2007 or the years prior to that was really around mortgages more than it was around, you know, car loans or some of the other lending or credit card lending. overall it was a credit bubble. i don't think that's what's going on here.
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>> is there any parallel to make toward the corporate space. we talked about it. stanley drunkckenmiller has bee warning about this for a year now. >> it's a very different picture. on the corporate side we haven't had earnings growth for a few quarters now. there was quite a bit of borrowing in the energy space, which was going gangbusters and now obviously isn't. household balance sheets on the other happened are healthier than they have been in 25 years. the one, i think, note of caution is it costs 18% to carry creditlet card debt, home, 5%. this is a much more expensive way to borrow. >> that's a point. chris, thanks for joining. >> you're welcome. thank you. >> >> what a great business to be in. >> which one? the credit card business? >> yeah.
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they borough row at -- it's one the few good businesses. >> the run on assets is better than a lot of the parts of the banking business. >> it's not like the street thinks this is any wonderful business, but, yes, you have that good spread while it works. >> buying them up? >> no. >> you love the business but you're not getting involved? >> i'll wait till interest rates go higher. might be waiting a long time. >> time for a cnbc news update with sue herera. >> the white house placed on security alert after a shooting on the street right outside the white house. a white male suspect brandishing a gun was shot in the chest by a secret service agent and then taken to a nearby hospital. president obama was golfing at andrews air force base at the time, but he was briefed on the situation. supporters of shiite cleric muqtada al sadder rallying for reforms. iraqi security troops and riot
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police used tear gas to disperse the crowd which left scores injured. camille cosby's deposition from february was unsealed. she invoked her spousal privileges not to testify about conversations between her and her husband bill cosby. that deposition lasted approximately six hours. a 1996 hummer once owned by tupac shakur sold for $337,000. it comes equipped with a tur bediazen v-8 engine and an interior. the license plate, yaknpak comes all included. >> thank you so much. we have a news alert on valiant. >> valeant putting out an alert.
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brian stolz resigning from valeant effective may 30th. the same week they said they're going to pay three other executives' retention bonuses of at least $3 million. interesting news from valeant. the shares, it doesn't look like they're trading after hours. thank you. >> meg tirrell. mack image mirror on the wall. microsoft is creating a mirror that can tell you who's smartest. first my interview with nba star carmelo anthony. how much longer he plans to play. a fair price, quality service, and that in a new house, you probably don't share the same tastes as the previous owner. ♪ [ dolphin chatters ] so when you need a little house painting or a complete remodel,
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welcome back. new york knicks forward carmelo anthony is taking his skills off the court. in his latest collaboration he's working with macy's and his teen new york stock exchange mutant ninja turtle fashion line. we talk about that and a whole lot more in this interview. take a look. >> i had the opportunity to just get involved with nickelodeon. we've been kind of in contact for the past couple of years trying to figure out where the relationship fit, and this was
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perfect. the tmnt was perfect. >> tmnt is the teen age mutant ninja turtle movie. >> yes. all of this came together at a perfect time. they were filming the movie. i was working on the kids line with nickelodeon. i got an opportunity to be -- have a cameo in the movie, so it all tied in perfectly. >> should we expect more in terms of fashion and retail? >> well, we'll see how this goes first. one step at a time. >> everybody's trying to figure it out right now. they're trying to figure out whether macy's is going to make a go of it long term and what's happening with all this internept disruption and things. what do you think in. >> i think if people want it, they're going to find it, whether it's in the traditional stores or online. whether they want it, they're going to. >> even foot locker was struggling. maybe people are ordering shoes
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direct. >> the shoe platform is different. i don't think people are going into stores and buying shoes anymore. i think everything is online, website websites. they have these zbik sneaker cons going on out there. there's a lot of didn't ways you can get sneakers than goer to the brick and mortar stores again. >> do you think people will ever do it again or is it game over? >> i don't think it's ever game over. it's like they say nobody's watching tv but you look at the ratings and some are sky-high. i look at it the same way. >> how about the investments you're in. people are worried whether things have peaked. >> it's interesting. you look at us at the tech world and people say it's a bubble. the bubble's going to burst soon. >> they say carmelo's in involved, there's got to be a bubble. >> the bubble's going to burst soon. but then you look at investors,
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and they still invest in hundreds of millions of dollars in startups. >> what are you learning that makes a good business? i'm sure there are ones that surprise you and others that you're wondering why isn't this going so well? >> i think for the most part it's people believing in it. that's why you see some of these companies, you don't know the name. you may not be familiar with it but then you look over and see they raised $20 million in the first round or they had $200 million, you know. you're like, what kind of company is this. but that's just the way it is. if people are feeling good about it, if the vcs are feeling good, they're going to invest the money. >> any new investments you can tell us about? >> not as of late. >> is that because of lack of opportunities or you're being selective? >> no. it's being selective. the opportunities are there. to be honest, the bubble makes me kind of wary a little bit about what's going to happen. we're taking our time and seeing what's the best fit. >> how does it feel right now going to the nba playoffs are
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happening. the warriors are out there and cleveland's out there. what's running through your mind? >> i need to be there. i'm sitting on the oemg f my seat and looking at that. sometimes i have to turn to tv because your competitive spirits start coming out. sometimes i watch. sometimes i don't. >> do you think jeff hornacek would get you there? >> i don't know. hopefully. is it a done deal yet? >> i don't know. do you know him? >> i don't know. i don't know. i just know him as a player. what about phil jackson? what about if he were to leave. any concern? >> there's always rumors that he's going to leave and that he's saying he's going to stay. >> he is 70 years old. >> yeah. at that point, he's got to do what's best for him when it comes down to that decision. but in the meantime, he's here. he's still working for the new york knicks. >> you're invested in new york in the true sense of the word. you came back here and you've done so much to just, you know, get involved in the finance side of it and the tech side and the startup and you've got your charities, a ton of different
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things going do. you feel like that's kept you here in a bad way? do you look back and say i should have been more nimble and flexible? >> well, i think some people might say i should have been selfish and kind of thought about myself, but when it comes down to just basketball and winning and having a chance to go to a place where they put me in a situation where i have a better chance of winning right then and now. but, you know, like i said, i'm here in new york. you know, so many different opportunities for me here in new york, and i try to take advantage of that. >> you just told me -- we're talking about the fourth olympic games this summer for you. fourth. >> fourth. >> that's unbelievable and that's a huge accomplishment for any athlete in any sport ever to be able to have that kind of record. so how much longer? you know, what's that next thing for you in basketball? how much longer do you stay in the game? >> i don't look at it like that. i look at it -- i think i'm in the prime of my career right now.
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i have years to go in this league. i look up and i see guys playing 20 years. i mean that's a goal of mine, to play, you know, 20 nba seasons. >> what about social media? we f we can talk about the business of basketball for just a moment, it's flourishing with the way people love to share moments where there are great moves and great dunks. i don't have to tell you. basketball as a sport is flourishing. but do you think it's something that needs to be streamed on twitter like nfl? >> what nfl did streaming the game on twitter, the first of its counseled, it was ground brake. i don't think people knew what to expect when the announcement came out. i still don't know about the viewerships and ratings and all that, but from an idea standpoint, i thought it was brilliant. >> what about virtual reality? >> virtual reality is big. >> already? >> already. it's already big. >> how? >> it's already big because people know it's something but they don't understand. >> i don't understand it. maybe you can explain it to me.
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>> you know, for me, i think in the next couple of years you're going to see from a sports standpoint, you're going to see a lot of fan engagement through a virtual reality. you're not going to have to be sitting courtside to enjoy the game or feel like you're part of the game or feel like you have a courtside seat. you can sit home in your living room and still be on the court sometimes. that might be much better than actually spending that amount of dollars on a courtside ticket. >> athletes today who are still in college, does that need to be addressed as an issue of how they're making money, you know, let them open up that whole world? what are your thoughts about that? >> for me if i could talk to some of the guys and let them know -- you know, figure out what you want your brand to be first and build it up instead of letting somebody else tell you what your brand is about. >> carmelo anthony there of the new york knicks. >> wow. bob costas had better watch out. >> very funny.
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>> you really knew your stuff when it came to sports. >> listen. my mom was a -- her last year at su was jim boeheim's next year. >> oh. so there is a connection. >> there is. interestingly enough, we also asked him, how do you spend your time and he emphasized it is court first and everything else sort of follows from that. >> it's good to hear. it's impressive that he thinks he wants to play that much longer. i don't know if the nicks are ready to re-up him after his deal is over. really, next year. it's going to be something. the question is it going to be everything, which i think is what some of the silicon valley folks are talking about. >> you'll have to see with jonah. we'll know. >> you'll know it's for real. time for him to leave the house. >> san francisco watch out. san diego is cementing itself as a startup haven in its own
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right. we'll get a look at the ecosystem in the other bay area. but first there was a cyber attack on an international bank last year that no one knew about. now fund transfer swift is urging clients to share information on hacks as soon as possible to keep money safe. the fallout from the third hack attack is next. you never want " [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. i'm here for the new iphone. my horoscope told me i should get one. well it just so happens that right now, we're offering a really great deal on the iphone. oh, great. so your horoscope said buy the new iphone? oh yeah. it said, "this day will be fairly eventful." yeah, i mean there's no other way to interpret that.
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welcome back. there's another international bank reported. let's get back to eamon javers
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on this one. hey, eamon. >> think of swift as the central nfs system for the financial system. it's the electronic messaging service that thousands of banks around the world use. and what we've learned over the past several weeks is the whole swift process can be vulnerable to hackers. we saw that in play during that $81 billion bank of bangladesh heist last year and just last night we learned from reuters about a new attack in which attackers got apparently about $12 million. zwruft this morning swift put out a notice to its customers warning them of the cyber vul never bltds asking them to share information. here's what they said. we speflkly remind all users to respect their obligations to immediately inform swift of any expected fraudulent use of their institutions swift connectivity. why is that? because it looks like a lot of the banks were not sharing information about cyber heists and hacks with swift itself, even when swift was involved in
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the hacking attempt. so that's something swift wants to get its arms around. it wants more information about it. raising questions up and down unclud iing bill dudley. here's what he had to say. >> we need to continue to control our internal environment because as we see the threat environment is always changing so we always have to ask ourselves the question are we doing all the things we can do to make sure our systems are as safe as possible. and, of course, we're doing that. >> so no specifics there on dudley on exactly what the new york fed is doing, but he said, of course, we're doing that, making sure that the systems are able to handle this new threat. obviously a real vulnerability here. we're talking hackers walking away with millions of dollars at a sometime. >> exactly. eamon, thank you so much for keeping us posted. mark cuban is on "meet the
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press" this sunday. he's already making news. >> you joke thad you would love to be clinton's running mate as long as you were allowed to throw bombs at trump. if she really did come to you, would you listen? >> absolutely. but the key would be she'd have to go more to center. i think, you know, i like the fact that senator clinton has thought out proposals. that's a good thing because at least we get to see where she stands. but i think senator sanders has dragged her a little bit too far to the left. things like college tuition and other business elements that really i think could hurt the economy. if she's willing to listen, willing to hear other sides of things, then i'm wide open. >> you can be sure to catch mark cuban's entire interview coming up on sunday. would you serve as hillary clinton's vice president, mike? >> apparently each ticket has to have a tv reality star. you have to counter one with another one. it's sort of interesting. if you go back 15 years and sort
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of the profile that mark cuban had, you would never project that you would get that question. >> oh, no. it makes total sense. i don't even know how to use twitter. and donald trump, they love expressing unedited versions of themselves. >> it's more authentic. that's what you're doing on the show here. >> it's actually -- it's actually -- it's actually -- there's no authenticity when you're totally authentic. there's no consequences for anything they actually say. >> it appears to get them more attention and more opportunities and more platforms. it will be interesting to hear the rest of what mark cuban had to say. it's not just banks being at risk. it's smart homes and smart cars. the risk is growing. next we'll head to san diego for a behind-the-scenes look at a company working to secure it all. 4,
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it's not just the government or banks that need to worry about cybersecurity. since homes and cars are getting smarter, they have to worry about the internet of things. one is focusing on securing all this for us. kate rogers has more for us now. hey, kate. >> hey, kelly. that's absolutely r50i9. cybersecurity is big here in san diego. just like san diego's neighbor to the north, it's really established itself as a hot bed for startup activity. in the last go years it's named the top ten startup city. that cybersecurity and technology background, they really become the backbone of the startup team here. that's where darren anderson launched cyber attack in 2012. they have accelerator programs for companies focusing on everything from robotics to drones to securing the internet
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of things. >> i really became passionate about what it means to be able to be in an innovative place like san diego, but to do so from a digital standpoint. we have so many adversaries making to look our lives heard, stealing our intellectual properties, our ideas, was something that really got me originally riled up. >> reporter: now, he said they've got technology that actually hacked into drones and tells them to land. he said there's no place rather than san diego that he could actually launch this because of their military and defense background, but also because of the availability of local really strong talent. >> it is one of the only places in the country where you have cheap affordable talent that is as good as you can find in silicon valley. my team is made up of three former ph.d.s and former defense
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contractors. >> reporter: they can actually hack into a drone mid flight and get it to land safely, kelly. pretty cool stuff. back over to you. >> it's cool, but you know, it reminds me in a way of the whole point of this, it's hackable. so whether he's hacking into it for a good reason, or someone doing it for a nefarious reason, the point is the vulnerability here. >> reporter: absolutely. vulnerability was key among a lot of the companies we saw there. he mentioned drones, like we talk about them all the time. they're a huge problem. they're trying to secure different sport stadiums, concerts, things like that, companies that they're talking to. they've got another technology that can hack into the drone and return it to sender so it won't drop mid flight and possibly injure someone. it's innovative technology. as you mentioned, kelly, vulnerability seems to be key here among all these startups. >> especially as it moves into the home and car and everything. kate, thank you so much.
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raet rogers out in san diego. magic mirror was once a thing of fairy tales. is it a reality? details on those when we come right back. t-mobile is going big for small business. you'll never get charged data overages, ever. get your own 24 / 7 dedicated business account team. and with double the lte coverage in the last year you can get more done in more places. right now get 2 lines with 10 gigs each for just a $100 bucks. and for a limited time get a hot spot free, yeah free. switch your business to t-mobile@work today. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.
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remember that evil queen in snow white? she had a talking mirror that would tell her what she wanted to hear. microsoft is working to bring a magic mirror into your home. it unveiled it at a tech conference in singapore this week. it can tell you the weather, the date, time and can also, guys, read your emotions. >> wow. the last thing i need is a mirror to tell me i look like crap in the morning. my wife does that op her own. i don't need a mirror. >> or it would be one to cheer you up. >> it can tell if you're feeling in the dumps. your hair looks great today. >> you don't look a year over 40. >> interesting follow from the segment we just had about hacking your homes and cars and things. anything that's smart, even if it's a mirror, would have those vulnerabilities, right? >> somebody sees this to have a platform for advertising. the less you kind of
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passively -- or actually intentionally look at a screen, like a television screen, the more ways advertisers will -- >> advertising on the mirror? >> you know it's going to happen. >> no. >> there's no other reason to do it. >> i hope he's not right, but he might be. >> there's no reason to buy one then. i would rather not see advertising the first thing in the morning, because you can barely read it because you didn't put your contacts in. >> it will read exactly what you want. >> it will do your -- you can do your facebook. you're a huge fan of that. >> yes. >> you can use your facebook from the mirror. >> let's pivot to markets before i get really distressed. so we had after this week, i don't know, people's attention starting to shift toward china. are a point was made earlier this week, can the chinese afford to kind of go against the grain there? we saw what happened in markets in february and last august. they didn't react well when they
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started to let it go. what happens if they have to do that again? >> that's absolutely the question. the same chain reaction, get rolling. that's happened in december. you have seen the chinese currency leak a little bit lower. they devalued it. just a little bit. so far all the moves have been very tame. i still think you have a market that it might be good enough to tighten, not to really stoke corporate growth. >> and the u.s. swimming against the tide in that regard. >> you know what, it terrifies me that we talk about a 25 basis point move. and there are all these repercussions and global effects. it shows you, you had the chart up earlier which i found it fascinating about the movement in bond yields. we're so much better off than we were ten years ago, but it's still -- i don't know if it's a perception thing, but we seem very fragile. >> 1 percentage point than the high yield. this is why it feels, again,
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like we're on this -- it's between two dramatically different outcomes. >> i don't think -- it won't end well. >> we have fed speak next week. all these issues will be wrapped into it. >> that's true. thank you for joining us here. that does it for "closing bell." "fast money" begins now. >> happy friday. "fast money" does start right now. i'm me less a lee. tim, david, brian and guy are here with me. the biggest bull in the man who called the bottom in february. says investors are missing their best chance to buy stocks. tell us what has him so bullish. the very same names that hedge fepds are betting will collapse, and we'll give you the names. shares of footlocker are tumbling today. it could spell serious trouble for nike. we can tell you how to profit. we start off with an interesting development in the market. the names that have been outperforming, taking on the chin da

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