Skip to main content

tv   Closing Bell  CNBC  May 24, 2016 3:00pm-5:01pm EDT

3:00 pm
almost a 2% gain on the session. >> and home depot is your best performer. i'm sure we'll talk more about it on "fast money." >> thank you. in the meantime "closing bell" starts right now. hi, everybody, and welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i won't tell them. i'm bill griffeth. a bit of rally today on wall street. the dow up more than 1%. we're just off the highs with the session now. housing stocks doing well on the back of the new home sales. tech is strong. >> speaking of tech, snapchat reportedly raising money at a valuation of $22 billion and all of the drama. we'll speak with a top venture capitalist about that coming up.
3:01 pm
>> and more evidence that we're not in the 20th century anymore, toto. esports coming to cable. why competitive video gaming could be the next frontier in the new world. now coca-cola is stoning production in venezuela because of a shortage of sugar. wheel talk with a global economist about the impact this could have across latin america. some of the stocks including homebuilders. mary tom sn is on the floor with the details. mary? >> hey, there, bill. markets rallying on the back of a strong gain in europe. then we have the housing data. there's also a bit of a short squeeze going on. volume is not that great. i'll tell you what's great. the action on the back of the positive data for the april housing. we have toll brothers right now with better than expected numbers. its stock trading at $29.30.
3:02 pm
to the right you see the others, pulte homes and others. the home numbers have given a lift to some of the suppliers of the housing industry as well as the appliance makers and other makers like whirlpool and all of those who make building supplies. those are among the performers as well. in large part you've seen strength in tech. semi's getting a boost on its report. and then lastly we want to point out cf industries. this was one of the biggest winners yesterday. this is a fertilizer company to acquire a dutch company called osi with changes to the virgin rules. yesterday merrill lynch cutting the stock prices. again, we're seeing the strong performance led by financials,
3:03 pm
led by health care and led by tech. back to you. >> thank you, mary. you know, the number of the day, to me $321,000. that's the medial price of a new home on the market. i mean these are dramatically high twhaern we saw during the bubble which is just fascinating if there a point of view. what does it tell us about that part of the economy. and there's a rally today and the stock's interesting. >> let's get to our "closing bell" exchange now for this day. john manly from wells fargo funds is with us. he's at post 9. so is steve grasso from stuart frankel and rick santelli is back with us from chicago. steesh gra steve grasso, you were talking yesterday. we have a pretty good cushion over that today. >> we do. flat on. i mentioned yesterday the fed has the inside track on the polling data for brexit and that's not going to be a hurdle for them if they wanted to go in
3:04 pm
june and no later than july. i felt like they wanted to stay away from that political cycle. june, july, it doesn't matter to me. it matters to the market and the fact that the dollar's rallying, crude's up. this definitely feels like a risk-on trade for me. but look at the housing data. maybe you play it through ford or gm. the follow-through would be the ford f-1 50rks the silverados, but those are really if you think of comeback in construction and a comeback in growth, you want to be buyers of those stocks unless this is just a knee-jerk reaction and we sell off in the next couple of weeks, which i do believe we're at the top end of the reins. >> that brings us to the question do you think the stocks will anticipate a rally? >> sure. why is the fed raising rates? because the economy is getting better. the real question is how many times are the feds going to raise rates.
3:05 pm
the real question is are they going to try to encourage or discourage economic growth? that's easy. no matter whatever the rates, they're going to push the economy. >> meanwhile, rick, let's see. the dollar, what did i see. was that a ten-week high? we've got a iuorio, a strong two-year note auction. discuss, rick. >> yeah. the two-year and the dollar index are kind of dancing to the same fed music. you know, i pretty much totally disagree with job. the fed's raising rates because all roads lead to negative outcomes if they don't. if the economy's getting better, they wouldn't be crying behind closed doors that they have to raise rates. they would have done it. but i give them credit. at least they're opening the door a bit. the real issue is it a chicken little chapter or is it not? i'm telling you, their credibility and it's not them. all central banks, all this
3:06 pm
experimentation, we're tired of having three arms and five legs. we want things to get back to normal and steve nailed it. what used to be a creeling is now a floor. how many times have we bumped up against a change from the downside. now we're bouncing off it from another direction. we're within a half a point of unchanged achlt half a percent before this morning's rally and i think that's a good thing. i read that santelli wrote a story about flat is the new up. that's been kind of the moniker, the saying on this trading floor for a couple of years now regarding equities that when normalization occurred, just a flat line is going to be a good youtd come. how many times are they going to put us through getting ready for it. >> yeah. by the way, one area that is doing okay today, john, are the insurers. it looks like chubb was trading at all-time highs. cincinnati financial, all-time highs. a on the high since 2015. john, would you stick with the
3:07 pm
insurers here? is this finally the relief over the higher rate environmental, you know, opportunity? >> i think so. by the way, i should mention. i wouldn't rather be wrong. i'm very proud of that. i do think the fed is going to help. we've been waiting for the fed to raise rates. most of us know they're at a moderate pass. i think the insurers anticipate that. also some of the banks should also anticipate. steve, what was your name again? >> yes. >> what role do you think crude oil is going to play in this equity market right now? we know the correlation has been busted. it was strong last year. hasn't been this year. but if oil continues to move to new highs for the year, does that put pressure on equities or does it help them? >> you can't -- i don't like to play it with pressure on equities. i think it's been misconstrued.
3:08 pm
i don't think that's necessarily the case. there's no global growth. it's anemic. our growth is subpar. so i do believe it's a trade at this point and it would eventually. i white gold rather be a seller. is that bullish bears? a lot of people in the space have been bettsing against that, but we're very tight to that $50 mark. goldman sachs put out their price target for crude. it's 50 bucks. a dollar and a half away from it now. no leap of faith. i would be a seller of the market. i would feel we're still topee and the market has to give some back. >> very good, guys. nice to see you. thanks for your thoughts on today's market action. we have breaking news on toyota and uber. put those together, dom chu. >> they're teaming up, guys. it's a lease they put it jointly. in this release toyota and uber have announced they've formed a partnership in which the
3:09 pm
companies have entered into basically an agreement in which they're going explore collaboration and trials on kind of expanding the world of ride sharing in certain countries. as a result of this collaboration and partnership, toyota financial services and an investment fund that has toyota as an investor will invest in this particular venture. again, the whole idea of this says the release is through this agreement the companies will create new leasing options in which car purchasers can lease their vehicles from toyota financial services and cover their payments through their earnings they generate as uber drivers. so, again, if you're an uber driver and you're creating -- or making a paycheck, youy use that to offset the cost of leasing or renting a toyota automobile. they'll also explore a collaboration in a variety of other areas such as developing in-car apps with uber drivers.
3:10 pm
again, an interesting partnership. for us, not unforeseen that a car manufacturer would get together with a ride-sharing service. we already know that gulf of mexico a gm and lift have a relationship. now toyota and uber in release in the pafts few moments. >> i with u going bring up the gm/lyft deal. clearly this adds value. >> it's an interesting way to talk about what's going to be the market for these guys. is ride sharing something that's disruptive to a gm or toyota or not? >> by the way, did you see the story in austin, texas, where the regulations chased uber and lea lyft out of the city? so the city leaders in austin, texas, in 16 days put together an alternative ride-sharing, a non-profit ride-sharing business that they're going to use called
3:11 pm
ride austin. i wonder if that's in the future. >> this is how center has evolved. the first person gets in there and they get all the chases. same with carmel. >> we're doing free association here. >> they have a new ride sharing app. >> really. >> yeah. so we'll be watching that. >> i'm all into that. >> with lyft, they're letting you book these cars ahead of time. that's going to be a big innovation. >> yes. you get a week advance of booking there. amazing. >> toyota making a strategic move with uber. the s&p is up 28. the nasdaq up 91. >> the redstone saga heating up after the billionaire named new trustees for his media empire. when we come back, the impact it could have a on viacom and cbs. plus snapchat raising $220
3:12 pm
million. is that a fair price or is this another potential red flag for a startup space. and uber and the gig kma economy to blame for the nation's growing tax gap. that's coming up later as well on "closing bell."
3:13 pm
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. because no one knows & like at&t.
3:14 pm
man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. we're always looking for ways to speed up your car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me,
3:15 pm
i'm late for an important function. compare.com. saving humanity from high insurance rates. welcome back. we've got under armour surging. it tops nike's $252 million deal with ohio state. coincidence, i think not. and shares of monsanto are higher after they rejected bayer's buyout offer. they called the offer inadequate. the people response for his
3:16 pm
stakes. when he dies or is incapacitated. julia boorstin has more or the latest on this story. julia? >> hey, kelly. that's right. today redstone announcing replacements. it will control 80% of cbs and viacom's voting shares when redstone dies or is incapacit e incapacitat incapacitated. he appointed tad jankowski and jill krutick. he also employed her and his granddaughter. he said, this is my trust and my decision. i have picked those loyal to me and removed those that are not. yesterday there was a suit filed to challenge the removal questioning redstone's mental
3:17 pm
state. meanwhile redstone filed a petition to uphold his changes to these two boards. now focus is very much shifting over to the future of viacom whose shares are down 40% in the past 12 months. reporting are circulating that sumner and his daughter shari redstone are looking to shake it up. these battles are over. >> i home andrew ross sorkin or others are taking notes. julia, we want to talk about how esports, video game playing has become a very popular spectator sport. it's coming to cable, right? >> that's right. esports is now ready for prime time. they're announcing the launching of the their first tournament.
3:18 pm
it will culminate with finals that will air on tbs on friday. this is the first of 20 esport events that turner plans to air live on air. they're branching off on the traditional tv content. >> not only does it offer legitimacy for the hardcore fan but it also opens the door for a casual friend and a potential to grow the audience. >> former nba player rick fox who's competing in it says this tv tournament is a tournament for esports. it's a way to cash in on the 220 million million people who are esports fans. >> there's ticket sales, media rights, sponsorship and merchandising. all the ancillary and traditional ways you would see a professional sporting franchise capitalize on their investment.
3:19 pm
>> now, the e sports industry is projected to grow to a $1.9 billion business in 2018. that's up from $750 million from last year. bill and kelly, definitely a hot space to watch. >> where do we begin? >> it's sort of when we saw the twitch. now this whole thing is really blossoming, and it's about people watching others play video games. i read today in the journal how it's changing the habits of buying people how they would try to get good at one or two they follow on the pro circuit. >> 220 million fans out there? are you kidding me? >> 220 million fans. and there are all sorts of statistics that are mind-boging. if you look at the amount of time people spend watching video games every day and the range of companies getting into the spachls now, of course, we have turner making a big bet in this spachls remember, it was almost two years ago that amazon bought twitch for about aillion dollars. it's one of the main
3:20 pm
destinations. everybody thought youtube was going to buy twitch. youtube has been investing heavily in its own streaming. teen gamemakers themselves are investing this this space as well. >> friday night, right? get the popcorn. get ready. >> you enjoy. >> we know what you guys will be doing. >> absolutely. >>'ll be watching tcm or something, doing know. thank you very much, julia. >> is there basketball friday night? >> probably. a couple of big series going on right now. competitive. >> the market continues to set highs for the day. the dow up 234 points right now. percentage-wise, nasdaq is having a better day. up 2%. >> snapchat has over 140 million users. they've just nailed a $20 billion valuation. up next we'll hear from a top venture capitalist whether that price is just burng.
3:21 pm
meanwhile disney is waiting to open its long awaited shanghai park but now someone is vowing to crush their dreams. we'll have the details coming up on "closing bell." olay regenerist renews from within...
3:22 pm
plumping surface cells for a dramatic transformation without the need for fillers. your concert tee might show your age... your skin never will. olay regenerist, olay. ageless. and try the micro-sculpting cream you love now with lightweight spf 30.
3:23 pm
3:24 pm
still the stock down around 46% for the year. ceo nick wood miami with "squawk on the street" this morning. >> i think it's somewhat relative of people's understanding of what it is we're building. in that sense we're highly motivated to do a better job of communicating the vision of gopro and go and build it and go and realize it to make it real. >> those shares of gopro you could see up nearly 5%. >> i'm not picking on nick woodman but how many have we heard from when their stock is down saying their stockmarket doesn't understand my company. >> oh, sure. right. >> yeah. >> sometimes you hear it on the flip side. maybe elon musk talked about it. oh, when stock's high. we talk about it.
3:25 pm
no troves. no big news and things. it's quitely building a big franchise, isn't it? >> yeah. well, especially in my house. we have three teenagers. so i think they're creating quite a buzz? that demographic. >> still, steve, how much do you think it's worth here? $22 billion. you know. is it justified? >> well, if you look at it
3:26 pm
alone, snapchat is growing faster than facebook. it has about 40% of the engagement that facebook has. and 40% of it as well. it has 10%, 15% of its daily active youers account. so today facebook is worth $330 billion. is snapchat worth 1/16 of facebook given those numbers? >> right. >> i i'd say. >> we know how fixing the young can be with their social media. they'll move onto another platform when they get tired of that one as they've done in the
3:27 pm
past, right? >> that would be the bear case that this is a flash in the pan and, you know. is snapchat profitable? >> i can't tell you that. i know these companies don't often monetize to the extenlts that the more mature companies do, but, you know, it's often said that content is king, but context is god. if you think about what that means, the -- overtime if you bring the -- i hate to sort of harken back to the days of the
3:28 pm
eye balls where companies are valued on eye balls. but today snapchat has as much video traffic as facebook does. it's only a matter of time when that level of traffic, that they're going to start monetizing. >> part of the reason why it's risky is the fact that it's private. should there be more of an effort to get companies? once they get this big into the public markets where it's easier for people to look at their financials and make sure it's there? >> yes. well, unfortunately there's effectively a $500 million tax on startups going public. it's called regulation in the form of starbucks, a huge variety of regulatory issues
3:29 pm
that essentially criminalize in banging and being a startup company, you can only really afford to go public once you've gotten to be at fi $5 billion, billion, $15 billion company. the reason we're talking about this on cnbc, snapchat, which no one can invest in except for a few select private institutions, you know, it says a lot about where we need to go regulatorily in our country. >> it does. steve, thanks for joining us. >> thanks, steve. >> steve talking snapchat. it's time for our news update. let's get to sharon epperson. hi, sharon. >> hey, kelly. here's what's happening this hour. president obama talking with veto any meese on tre bre nears about their business and success to ho chi minh city. he says it will talk about their potential for innovation to the world. gas stations in paris
3:30 pm
experiencing fuel shortages with some temporarily closing. this following union-led blockades. the blockades oppose france's new label reforms. security is being tightened near the g-7 summit in japan. they set up roadblocks while more police were added to the area. the two-day summit which president obama will attend begins tomorrow. and who would you like to sit next to on a plane? donald trump, hillary clinton, or bernie sanders. they surveyed nearly 10,000 travelers and 37ch said donald trump, 32% bernie sanders and 31%, hillary clinton. who are your choices. >> trust me. we're not going there. but i thought that sounded like a great setup for a joke somewhere. >> is this the new who would you rather have a beer with? >> i guess. who would you rather go through tsa security with. >> that's another spin to it,
3:31 pm
yep. >> my guess. >> my joyce would bechoice wowu. i sat next to a dachshund and it was the best plane ride of my life. the market is strong. it's adding 234 points. several huge global bank cyber heists have prompted new security measures to fight these kinds of thefts. we have details and sort of a backstory about this coming up as well. and speaking of banks, wells fargo is taking on apple and the fast growing epayment space. it's coming up. you both have a
3:32 pm
perfect driving record. >>perfect. no tickets. no accidents... >>that is until one of you clips a food truck, ruining your perfect record. >>yup... now, you would think your insurance company would cut you some slack, right? >>no. your insurance rates go through the roof. your perfect record doesn't get you anything. >>anything. perfect! for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claim centers are available to assist you 24/7. for a free quote, call liberty mutual at switch to liberty mutual and you could save up to $509 call today at see car insurance in a whole new light. liberty mutual insurance.
3:33 pm
3:34 pm
shares hitting a new all-time low. the social media company also announced some changes that we sort of knew about already designed to help jump start staying nanlts user growth. it will reach all of your followers. you can also retweet and quote
3:35 pm
yourself, kelly. >> but they'll start against it which is interesting. she's good friend of mine. i want to take a moment to acknowledge that. >> thank you for reminding our viewers. >> it wasn't anything where you could say, you know what? we can build on it. that seems to be the consensus down here. what's next. you look at all the feds speaking. they're saying, well, now the probability of a rate hike is higher than it was a week ago, two weeks ago. but why. what are they seeing that we're not seeing. it seems like they're boxing themselves in a little bit.
3:36 pm
>> what are they looking out? >> some sort of initiatives to develop progrowth in europe and asia. we've seen efficiencies in that. not that we're doing so great here but they're still paying something on the bonds. >> so you're skeptical of the rally even though it's a pretty big one. >> we're back off the highs. you have to tip your hat to financials and tech knoll which has been leaning to. we've been trading in a range. this isn't the action. where the action is going to be, we don't know. keep your head up. it's coming. it's not here yet. >> gordon, thank you. >> my pleasure. >> all right. we have a string of high-profile cyber bank heists finally forcing the banking industry to launch a new security program. eamon javers has details. boy, do you have a lot of details, eamon. >> yeah, that's right, bill. let me start off by explaining that s.w.i.f.t. is the international electronic banging system that they use to transfer
3:37 pm
messages around the world. it's come under a lot of scrutiny in the wake of that $81 billion bayne gla desh bank heist this year. the ceo of s.w.i.f.t. itself was set to make a cyber security speech earlier today in brussels, belgium. we wanted to bring you that speech. but i have to tell you that our cameraman was kicked out of the venue before that speech began, so we don't have any speech of the ceo talking about cyber security. we're just here relying now on what s.w.i.f.t. itself put out about the speech. here's what they said their new reforms are going to be in terms of cyber security. s.w.i.f.t. saying it's going to have more bank information sharing of cyber security threats. it's going have tougher security requirements for bank managed software and use payment pattern controls to look for indications that something fishy might be going on and it's going to have certification requirements for parties that do buzz or
3:38 pm
transact. that's s.w.i.f.t., god freed and others. cyber security is, quote, the main thing to keep me up at night in terms of a threat to the global financial system, bill. >> i don't want us to be the story, but do you know why our camera guy was kicked out? was it only our camera? were we the only camera there? clear that up when you talk about the particulars. >> we don't know. we don't know why our guy was kicked out of the event. we had secured permission from event organizers and s.w.i.f.t. itself had sent out a press release announcing the speech ahead of time, so we were under the impression we were invited there and okayed to fill but before the cyber speech our guy on the ground was told he had to leash and he did so. so we have received since then an apology from the s.w.i.f.t. folks saying it was a miscommunication somewhere along the line there and the people at s.w.i.f.t. said the fact that they kicked us out of the event
3:39 pm
that they're anxious or there's a level of nervousness about this particular speech but they say it was a mishap. >> that does get to the larger question. maybe they should be a little bit anxious about this. >> the ceo said this is the thing that keeps him up at night. so he's saying he has anxiety about cyber security and he says its nan existential threat, a threat to the existence of banks themselves because banks are in the position of trust themselves and you trust a bank is going to secure your financings which enyou do business with it. when banks can't verify the trust then they can't stay in business was the argument that he made. so that's why he's saying they have to tighten up cyber security around the world. it's a big prop. they reveal themselves to be a lot smarter than anybody in the financial system thought they were. >> that is for sure. all right, amon. thanks very much. >> you bet. >> 20 minutes left in the trading session. just off the highs of the session with the dow up 229 points.
3:40 pm
>> food shortages in venezuela leading to big protests and calls for nicholas ma duerr reto step down. up next we'll look at the potential ripple effect of venezuela's economic meltdown. >> and you're not alone if you throw milk away on the sell-by date but the accuracy of those dates it turns out is now being called into question which results in huge amounts of food being thrown away. that's coming up on the "closing bell." thank you.
3:41 pm
imagine if the things you bought every day earned you miles to get to the places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag, 2 united club passes... priority boarding... and 30,000 bonus miles. everything you need for an unforgettable vacation. the united mileageplus explorer card. imagine where it will take you. quite like the human foot. introducing the 241 horsepower lexus is 200 turbo. with almost twenty percent more base horsepower. once driven, there's no going back.
3:42 pm
3:43 pm
welcome back. we love this one. the s&p 500, you can see the markets are rallying strongly. >> all ten positive. look at that. >> technology leading the way. that's well, in fact, ahead of financials which are up 1.6% tied with health care. energy materials the laggards today. >> even as oil hit as new high for the year. still, it's all relative. everybody's positive. >> protests in the streetses are a daily occurrence in venezuela which is quickly unraveling. it has decimated the economy. among other things, both coca-cola and the local beer have shut down production due to
3:44 pm
shortages of raw materials. now a growing opposition is demanding nicolas maduro step down. >> so what's ahead for the latin merge country, we're joined by it. it's a global risk nachlts good to see you. thanks for joining us. we've seen this movie so many times before. the economy details, hyperinflation, chaos in the capital. people in the streets protesting. the solution is never pretty. i mean it's never easy. i mean we're still in the early phases of this chaos for venezuela, aren't we. >> yeah, we are still in the early stages. what i would say is venezuela has been in a very, very difficult situation for a number of years, but we do see things that accelerates them for some sort of ugly conclusion in the next -- in the next 12 to 18 months. >> 12 to 18 methodicals.
3:45 pm
there's shortages of everything. people are starving. >> that is true. and it even makes, you know, conversation about that. a little incendiary when you think about the humanitarian crisis. the opposition is increasingly unified, that there are still divisions behind the potential referendum. that said i think the game plan in the government will be to try to string things out through this year, potentially supported by a slightly better oil price environment. they then have some sort of palace coup in early 2017 when near the end of the president's term sump there don't have to be fresh elections yet and the existing regime can continue in power. you have to think here you're in a situation with a political -- a regime which has never had to play by the rules of democracy when it's been on the losing
3:46 pm
side. it's been very happy to be committed to elections when it's the majority. but it's now in a very, very difficult situation and will not voluntarily hand over power. >> the question we have to ask is will there be a contagion? you don't think so, do you? >> i think there's certainly exposure to other important emerging markets in the region like brazil, vengs. yo venezuela. colombia. and venezuela is playing some sort of role. i mean there could be some sort of incremental impact on risk appetite for, you know, retail investors who aren't tracking the region very closely. but i don't see this situation rippling out across other economies. >> james, this is a little bit different question. i don't know if you can really speak to it. but if the international community with the best interest of the venezuelan people in mind
3:47 pm
would do what they want to help, what would be the best course of action right now? is it getting rid of maduro immediately or would that not be the best thing at this moment? what is the best way to help people there? >> i think the international community is able to impose solutions. i think there needs to be enter national cooperation around some sorts of mediation. and the other on a very practical level would be to try to negotiate the government, some sort of aid provision that would be of a nature that the government would be happy with. because like you said, people are starving. they don't have food. they don't have basic supplies. they have plenty of hydrocarbons, but you can't eat hydrocarbons. >> before we let you go, i have to ask you the impact this has on oil. clearly we've seen nigeria has gone off the grid. canada with the problems they're having with the fires up there. venezuela is just having a pump
3:48 pm
like man for obvious reasons. they need the money. any impact you can see on the price of money down the road as a result? >> it's hard to imagine that oil production would be totally protected from major disruption. it's held up so far. but we're dealing with a country that deals with 2.5 global reduction. this is partly about perception and impact. on the impact side, venezuela is a big deal. that's going to scare investors. it may lead to an uptick in the oil price but also structurally. we're looking at a tightening environment here in changing the overall supply and demand. so in that regard, yeah. this is fact which could potentially be supported. among like you indicated many other states. >> thank you for joining us. i appreciate it. >> thank you. >> james lockhart smith there on the unraveling situation in vens. a little more than 12 minutes to go. >> art cashin, a signal to the
3:49 pm
$400 million to sell. so slight bias to the downside. we'll see if that has an impact. is today's rally sustainable given the uncertainty of a fed rate hike and all the usuals. we'll talk about that next coming up.
3:50 pm
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. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars.
3:51 pm
3:52 pm
about eight minutes left in the trading session. joining us right nono the floor of the new york stock exchange is michael of the group. nothing much changes except maybe they won't leave the european union. it seemed to fuel our own rally. >> i think it has. the new home sales, highs since 2008 and the biggest jump since 1992. but all the focus is on the short-term factors. brexit, greece, the election. there's a lot weighing on it right now. >> it was pretty bad.
3:53 pm
3-1. that's below 50. what does that mean? >> look. this is unprecedented. the experts are divided. you talk about the u.s. getting better, quote/unquote, but the rest of the world is deflationary. greece is struggling. the brexit is weighing on people. i think what we're doing, it's top investing. whatever way you think it's going, pick the best managers and strategies and go with that. >> i was going to say the problems you're presenting are short-term. does it present a short-term opportunity? if you can work your way through whatever the resolutions are going to be. >> yeah. long-term opportunity for sure. bull markets grow on pessimism, grow on skepticism. a and, you know, when things aren't that great, it's a great opportunity. >> who's in your best quality basket? >> we do an overall allocation
3:54 pm
for our client. i think hedge funds are getting murdered right now. i would look for good hedge funds. the banks are down significantly. if they rally 20%, you're going to see the whole market rally. i think we're getting to the end of the regulatory pressure on the banks. those would be the two sectors. >> can you be snevg can we ask you, is it all of the above or -- >> look. we don't get specific until you come to the bapis group at hightower, but other than that, we don't look at specific names. >> do you think the fed raises rates next month? >> i think you could see it. short term it's going to matter. there's going to be light volume. there's going to be the summer doldrums if you will. it will affect the markets short term. it's not going to do anyway. >> we were talking during the break with another it helps.
3:55 pm
>> again, the experts are divided. they think the economy's not good, and when they do raise rates, it's going to crush the markets. historically you're right. look at the beginning of the year. if you look at january 1st saw the percentage where it was, close them, march 1st, nothing would have happened. but we saw a huge volatility. that could happen with the fed raising rates in the short term. >> it's like charlie mung ger said. microeconomics is what we do, mac macro economiconomics is what w up with. >> michael bapis of bapis hightower. we'll take a break that and then our david faber will be covering the report. we'll bring it to you along with instant analysis as soon as it hits the tape. stay with us on "closing bell."
3:56 pm
3:57 pm
i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade
3:58 pm
on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. inside two minutes off a desenl day. yesterday, aisle put it kindly. it was a flat day. today we're finishing near the highs of the session with a gain of 22 points. during this time wci crude and brent hitting highs for the
3:59 pm
year. we're going to show you the crude oil for the year and it just continues to move higher here. mary thompson is with me on the floor of the new york stock exchange. we'll point out very quickly as we mentioned new york enterprises will have earnings out. david faber will be joining us. you were telling me you have ipos tomorrow. it's been wild. >> there's a million ipo coming out. that's a big event for tomorrow. but you know what we saw today was a pretty steady -- the markets held onto that gain. during the morning i said, do you think we'll see this. initially we saw a rally off the back of the european market and, of course, the blockbuster sales on the home front. short space helped too. we saw financials, health care and tech, the worst performing shares lead the markets today. >> we'll see if it continues
4:00 pm
tomorrow. >> there are some doubts about this market. you know, the higher rates coming on. >> the skepticism hasn't gone away, that's for sure. thanks, mary. going out with gain of 210 points. it's all about water today. muller water is ringing the ball. artesian resources at the nasda nasdaq. see you, tomorrow, kel. >> thank you, bill. a strong session. the dow a gain of 211 points, the s&p was up 28. 1.4% nearly for the broad index of $20.76. now the nasdaq was the strongest performer today led by most of the big cap names on the nose. 95 points. microsoft, apple, alphabet all leading the way in the session today. and coming up, the big economy economy providing millions and
4:01 pm
some are not paying their taxes and it's leading up to millions of dollars and we'll have the details coming up. joining the panel, we have mike santoli along with cnbc contributor stephanie lick. welcome. >> thanks. >> guy adami joins us too. mike, thank you. this is a strong session. you know, how do we know whether it's believable. >> this is the question. so you have to kind of do a little bit of a tale of the tape. this is the fourth day where we've had at least a 100-point dow gain. of course, much more than that on a single day. the prior three times, you had one day each day where you actually lost most or all of those gains the next day. i did kind of go through a list of maybe some items you want to check to see if there's anything more behind it. i think on balance this one has a stronger footing than some of the other ones. those are the instances where we did have the one-day spikes. i'm looking at things like the
4:02 pm
nasdaq outperforming today. that was not the case with other instances. the dollar's higher, bank stocks are higher. the credit markets are higher than they've actually been. the yield is going up and the market is at least maybe making its peace with the yud that a fed rate hike might be coming. so it's a growthier move and maybe it was a little bit more than we were oversold and people weren't in position for it. it doesn't mean this thing sticks and we go up and away from here but it suggests there might be a better tone. >> to your point, the sector led the way, tech, financials, and at the back of the pack, energy and materials. >> i thought the best part was the housing. that shows the economy is doing a little bit better. we're not off to the races. we still have a lot of issues. home prices are up almost 10%. units up 23%. these are really big numbers, and the multiplier effect that
4:03 pm
housing has on the overall economy is really something to really watch. it's very important and so you have the consumer stocks rally today and then you certainly had some tech -- i mean tech has been kind of really very spotty year to date, right? so today you had old tech and new tech doing well, value and growth doing well. and then you had some health care, too, which was very encouraging. and i think health care has been acting pretty well over the past couple of weeks. you get that group back to lead, that's a good thing, i think. >> guy, what about the insurers. it bears repeating. chubb today was trading at all-time highs. cincinnati financial at all-time highs and was the highest since 2015. so this goes back to what michael was saying. we apparently have an environment where higher rates are on people's minds and all stocks broadly are doing well. >> those stocks are absolutely telling you. mike's point before, the interest rates are higher. i'm not certain that's the case but the stocks seem to suggest
4:04 pm
that is the case. so we're going to see as usual who's right. but it's not unlike what we saw with energy, i guess, a few months ago where they started to lead the commodity app. now the commodity has clearly caught up, but a lot those energy names took the bull by the horns on their own before we got the energy moving. i'll say this about tech real quick. i was on with you last week when they reported. i think the -- a lot of the tone of tech, believe it or not, changed with that a-mac report last week when we were on together. that was a ridiculously long report. a lot of the downstream and apple supply chance did well. we mentioned the stock that had a big day. maybe the data suggestions -- >> yeah. >> maybe the data suggests that apple is -- maybe that quarter was an anomaly and that's what people are starting to get their arms around. >> you went there. that's interesting. now, listen. warren buffett -- not warren
4:05 pm
buffett but berkshire making a move into the stock. a lot of people weren't sure if that was game over or not. >> listen. the berkshire hathaway is interesting. i get it. we've talked this to death. it with us not necessarily mr. buffet who pulled the trigger. ly say this. you have to ask was it a quarter one off thing. >> you've got to, go i know. or is it the beginning of snog the upside. >> we'll come back to it. but i do have those hewlett pack earth enterprise results coming out. david? >> thanks very much. before we get to the earnings themselves, deal news to tell people about because they're entering a deal with consumer signses cnbc which it will be spinning off in a tax-free manner and combining it with computer sciences corporation. again, the ticker symbol there, csc that will create a company that will have 26 billion dlurs in annual revenues and more than 5,000 customers.
4:06 pm
now, the deal is somewhat complex. it will be tax free. they're valuing the enterprise services business at roughly $8.5 billion. that is in skpebs of the current market value of csc. but in order to make this a merger of equals and also a reverse morris trust transaction that will receive the blessing they believe from the irs they allow to be tax-free, theory going to be paying a billion and a half dollar dividend from the newly merged company back to hpe. they're also going to be taking $2.5 million in debt and other liabilities. hence, that's $4 billion and then hpe believes that the combination created through the merger of its enterprise services business with that of cs kc c csc will be worth son-in-law $9 billion. half of that will be owned by hpe share holders. add it all together, they get to an $8.5 billion value. that's something they've been
4:07 pm
negotiating through the second quarter source working on this deal tell me and this is something they tell us they'll be comfortable with represents the ebitda that comes from the enterprise services. in fact, i'm told it's a multiple that's a bit above where csc currently trades when you do a full turn. a furn turn above the ebitda multiple that that company currently has. of course, this is a large part of hewlett-packard enterprises and will no longer be a part of the company. meg whitman will take a board seat at the company. the board will be comprised 50/50 as is the case equally of mergers. but mike lowery will be the ceo and chairman of csc which is getting much, much larger for this plan again for hewlett-packard enterprises to spin and merge its business with that of csc. important to keep an eye on
4:08 pm
shares of csc. i don't know if we have a look at it. responding very positively not just to this, kelly, but it also appears that the earnings the company put out today are actually fairly strong. in fact, it's the first time the company is seeing year-over-year revenue growth as reported, meaning not accounting for currency since 2011. the company reporting $12.7 billion. that's up 1% year over year but up 5%. that dollar, of course, as you well know has been more stable of late and so the company is guiding and expecting a more stable dollar will allow it to say that it is going to be coming in a bit above for the full year what has been at least where the analysts are on an earnings per share basis right now. but overall, some of the highlights from the quarter itself, hardware very strong. in fact, the company doing an enterprise group revenue of $7 billion. that's 7% year over year.
4:09 pm
10% in constant currency and 11% currency margin. these are some of the things that ceo meg whitman has told me are starting to bear fruit over the last four or five years she's been putting in space in terms of spending on r & d, changing some of the key market strategies, namely how it sells its products and doing a number of those things. of course, the deal there in which they did a deal for their business so they only own 49% of it now does seem to be creating some positive groukts for them. a good deal faster than some of their competitors. so overall, kelly, we've got an important deal in which enterprise services will be separated from hewlett-packard enterprises and what appears to be better than anticipated numbers, including actual revenue growth for this company. they're not having to say this caveat or that caveat. it's not a big number, but they'll take 1% if they can get.
4:10 pm
>> it david, if you'll hang there for one scored, i'll bring everybody in. what was one company is now three. and about what about this hewlett-packard enterprises. >> i think the market seems to be saying what they're hiving off is a steady state growth. what remains of hpe is a little growthier. you got rid of consumer-related hardware. so that seems to me that's the idea, plus, of course, the efficiencies of melding these scales together, i think, is what the market is seeing. >> stephanie, the shares are up 8%. >> now you know why she wanted to splits the company up. it was too big to manage clearly and she saw this one piece on the enterprise side to really drive value. with know that. service has been a problem for the company for years. the fact that they're spinning this off is a good thing. they're going to be left with networking which is a faster
4:11 pm
growing business. it should be. she can focus on growing that. i don't think the quarter so much was a surprise in that cisco had very good numbers and enterprise was encouraging. it wasn't perfect, but it's okay. i think this is consistent that they're seeing a little bit of an improvement. >> and the stock was improving. it was not wallowing the way it had been. >> we see, david, they mention the improvement of going from basically three clients to no clients having more than 10% of the business which i guess speaks to signing new clients before they were ready to do this spin-off. >> yeah. that is -- they are obviously going to be talking positively about it. very important to see how csc performs hunld the market actually takes the deal from its side, of course, given that -- well, you know, its current ceo will be running the business 50/50. all of that will take place upon the close. they're talking about this deal not closing until perhaps the end of march 2017. as for what's left behind, you
4:12 pm
guys have been talking about it. you're still talking about a $33 billion revenue kpep which aspected will have a higher growth rate given that the growth services has been something of laggard. that said it's a far cry from the company meg whit maine harpted which is now hp inc., printer and devices is and computer business. but when i had spoken to her, she said, listen, we want to focus and focus and focus, and that's what she's really done with this company as it's continued to pare down in both its aspirations to a certain extent and the breadth of its coverage and, of course, the cost because we know a lot of this has been done by cutting costs dramatically. some is showing in the bottom line today. i should also mention they're going to be buying back a good amount of stock, guys. as much as 4 pint $8 billion, increasing authorization given the proceeds they got from the china deal i mentioned and not having bought back any stock while they were negotiating this
4:13 pm
deal with csc. >> it looks like the computer sciences core shares are trading again. they're trading on the nasdaq. maybe 7%. we'll keep an eye on it. david, thank you for walking us through all this. our david faber. also be sure to catch david faber's interview with meg whitman, ceo tomorrow on "squawk on the street." guy adami. last word on this or elsewhere? >> it says a couple of things. what's the right valuation. maybe you give them a 9, 9.5 multiple which puts them in stock number one. number two, i would ask meg tomorrow or maybe david will, does this set it up to make it a tuck and acquisition. strip down, strip down, strip down and insert something that would make more sense with the core business. that makes sense. >> i'm glad you're nodding. that's the point they're making. >> i totally agree. cloud security. for sure. those are the two areas they're going to focus on and the
4:14 pm
valuations have come down. so maybe it's good timing on their part. >> really fascinating stuff out of hewlett-packard enterprise stuff. guys, thank you. >> later. >> there's more with guy and the "fast money" crew coming up. they're going to talk with edward yardeni who says the market has just again. that's in next hour. one chinese billionaire is vowing to keep disney from turning a profit in china for the foreseeable future. that's next. and wells fargo, how it's planning to revolutionalize your wallet. keep it right here. you're watching cnbc, first in business worldwide. this is lulu, our newest dog.
4:15 pm
mom didn't want another dog. she said it's too much work. lulu's hair just floats. uhh help me! (doorbell) mom, check this out. wow. swiffer sweeper, and dusters. this is what i'm talking about. look at that. sticks to this better than it sticks to lulu. that's your hair lulu! mom, can we have another dog? (laughing) trap and lock up to 4x more dirt, dust and hair than the store brand stop cleaning. start swiffer ing there's a place for vacationers than just a little time off. the ones who choose to go big or stay home. ♪ come with me now... where every amazing, despicable, wizarding adventure reveals moments that are truly epic. this place is made for those who do more than just vacation.
4:16 pm
♪ whoa go with me now it's made for those who vacation like they mean it. universal orlando resort. billions are spent to confuse and, dare i say it, flummox the american public. "save 16% on car insurance." "switch now..." well at compare.com, we say enough's enough. so we constantly scrutinize millions of rates... answering the question once and for all, who has the lowest. just go to compare.com and get up to 50 free quotes. choose the lowest,
4:17 pm
and hit purchase. so you can get back to whatever it is you civilians do when you're not thinking about car insurance. compare.com welcome back. a chinese mogul is vowing too prevent disney from making money. >> the second richnd man said disney is heading into a pack of wolves. speaks on television, he said they eat face intense competition from his lesser priced theme parks.
4:18 pm
he said over the next 10 to 20 years he'll make disney unprofitable. he said the days of mickey mouse and donald duck being able to create a frenzy are over. we've heard this before. he made his billion dairy four tune from entertainment. his group is increasingly taking on disney around the world. he bought hollywood production company and he's about to become the largest cinema own never the world. this weekend wanda is oenging a ticket park with a top price of $38. disney plans o open on june 16. their tickets are expected to cost $76. twice as much. we asked disney to comment. they said these quotes are not worthy of a response. back over to you. >> robert, thank you. we do know what robert iger said last time he was on "closing bell," sounding off on the company's plans for china. >> we look at hong kong.
4:19 pm
we look at china. we're certainly mindful of what's going on in the marketplace, but the investments we've made there, the park in hong kong and shanghai that opens in june, they're not made for june 2016. they're made for decades to come. >> my question for you guy is what are the characters in this theme park that wanda is operating. >> that's exactly the point. disney would say it's our characters, story lines that sells all over the world. at the same time i do know -- i mean bob iger has been very clear about this. disney has approached the shanghai park with a lot of lessons from hong kong. in other words, you can't do everything the same all around the world. they're not baseline and deft to the specifics and nuances of the chinese market and consumers. it's kind of interesting. it's fun. it's bluster. >> theme parks, it needs going away. disney, that's a huge strategy
4:20 pm
for them. it builds their eco system. it's beyond the tv issue. i don't think it's going to change any time soon. >> that being the case, even if this is a lot of bluster, you know these guys are, you know, ambitious and do you expect that, hey, they might have the backing of the chinese government some day to grow them to sky and make them competitive not only in their home country but around the world snow. >> it could. i don't know if disney has plans of entering into various different markets like 20 or 30 different markets in china. maybe, but that's not what we're hearing right now. they're in one market right now and they're selectively finding areas of growth and so that shouldn't be so alarming to this other company. we'll see. >> it's been a decade working very closely as you have to with the chinese authorities there to get this park built. i also feel like it's not a zero sum game. it's not like there's an "x"
4:21 pm
number of visits to china they're going to take and you have to apork them by the park. what's also funny is as the bit theatrical exhibiter that this guy is, you have to have a relationship with them. you're distributing their films over time too. >> true. >> so it's maybe just, you know, some kind of fun blustery quote as they say. >> we'll see if he means what he says. it will be 22 days till that disney park launches. the expiration date mace be totally arbitrary. a new law may be on the way to regulate those dates once and for all. we'll put expiration notices to the test coming up. first, a bank hoping your phone will will replace your wallet. looking to beat apple and google, we'll talk to the company's mogul maven next.
4:22 pm
4:23 pm
4:24 pm
welcome back. you're looking at shares. they're doing a spin-off and merger of its enterprise merger with this company. we had that story for you a couple of mihms ago. the shares are now up 16%. apple pay may be the best in brand pay but more and more commercial banks are elbowing their way into the market. today wells fargo enters the fray.
4:25 pm
joining us now to discuss the new venture is jim smith, the head of on line channels. welcome, jim. >> thanks very much. excited to be here. >> the wallet, i have it on my phone already. i double click. i guess it's apple pay. my credit card comes up and i hit it on the scanner. how will your mobile wallet work. >> very similarly. we're very excited to offer the wells fargo wallet in conjunction to solutions like apple pay, samsung pay. it's going to introduce the convenience of wallets to millions of new customers. we have more than 5 million android kmirs using our mobile banking app and this will be part of that mobile banking app so they'll be able to open it, activate their card and begin using it roue way. >> i should have said, too, this is for android users, which you say are about 38% of your customers. that's a pretty big chunk. for these folks, i'm sort of
4:26 pm
bypassing the google pay or -- you know what i mean? i'm basically directly interfacing with wells fargo and the point of sale? >> wily are different customers are going to choose different solutions. we really want to support our customers with the payment options that they want. so some will use the veenlts of a samsung pay if they're using one of those devices or android pay and some, we believe, will really prefer to use a solution from wells fargo. in fact, they reported that 50ch of smartphone users actually prefer a wallet from their primary bank and this really hits the needs of those customers. >> why then are now not doing this with iphones at the moment? is it too difficult or not economical for you guys? >> it's a really different operating system. in the apple world, it's a different set of technology that's more closed and so you're not able to offer the same kind kind of solutions. in the android space you can take advantage of the
4:27 pm
convenience of tap and play and post card em lags which allows you to store the card numbers securely. >> jim, it's stephanie link. i have a question on the big picture. do you envision one day the plastic card actually goes away and in terms of adoption are you seeing better strength in u.s. come supers versus international consumers? what are your interpretations in terms of looking around the world and consumer demand? >> our customers are mostly here dough ms. particularly. we've seen tremendous adoption. we're excited about the future of wallets. we have 2.8 million customers that have downloaded their wells fargo payments into those wallets. and over the last year, we receive an 88% growth in the number of active users, so we're excited about the future. you know, as far as whether the palace it card is going to go away, i they're eventually it
4:28 pm
may go away. it may take longer than people expect. one of the exciting things that will be coming in june from wells fargo is the ability to use those wallets to get cash out of an atm. so i think you're going to find more and more opportunities to take advantage of this underlying technology. it will just make it easier for customers to transact. >> that will be super interesting. i hate to tell you you're already behind. i don't know if you saw this today. using the -- we had it on cnbc this morning. literally implanting a payments chip. this is a "buzzfeed" reporter in his hand in order to make a sale. so mike is now working on that for us. >> yeah. i'm going to wait for them to get the bugs out a little bit. >> there it is. do you think this is where it's all headed? >> well, i'm not sure. it's hard enough to convince people to download an app. so i'm not sure ho it's going to
4:29 pm
be to get people to implant a chip but i definitely agree that the more you can do to make it easy and convenient for the customers to make payments if you do every day, the better off you will see and you will see adoption. >> all right. jim smith, thank you for joining us. time now for a cnbc news update with sharon epperson. sharon? >> kelly, here's what's hanning this hour. public health officials say there are thousands of people who likely contracted the zika virus while traveling abroad. hundreds of mourners packed a church in houston for an 11-year-old boy. he was stabbed to death by an apparent stranger while walking home last week. his father said he was a beautiful caring and compassi compassionate boy. police checked out a plane. this after a threat was called
4:30 pm
in to the tsa. the jet was kept in a remote section of the airport as passengers were escorted off the plane. the threat was later deemed noncredible. for the first time on record, living with parents is the most common arrangement for people between the ages of 18 and 34. it's the first time that living at home has outpaced living with a spouse in this age group since the record keeping began in 1880. that's the cnbc news update at this hour. >> i have to say when i was in spain a decade ago, it was pretty common. guys in their 30s were libyaing with mom and dad. >> some have always done it before mu and more people find it financially the best way to go. >> we'll see if it persists. the economy has provided jobs across the u.s., but a new study says it could be costing the government billions in tax dollars. those details are next. "closing bell" will be right back. e of a huge natural resource. not the land.
4:31 pm
the water. or power sources. it's the people. american workers. they build world-class products. and that builds communities. and a better future. for all of us. because making something in america means so much, to so many. weathertech. proudly made in america. perfect driving record. >>perfect. no tickets. no accidents... >>that is until one of you clips a food truck, ruining your perfect record. >>yup... now, you would think your insurance company would cut you some slack, right? >>no. your insurance rates go through the roof. your perfect record doesn't get you anything. >>anything. perfect! for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claim centers are available to assist you 24/7.
4:32 pm
for a free quote, call liberty mutual at switch to liberty mutual and you could save up to $509 call today at see car insurance in a whole new light. liberty mutual insurance.
4:33 pm
welcome back. it's time for your market recap.
4:34 pm
the dow up 213 pointss, the s&p up 28 and nasdaq up 2%. under armour shares were also surging after signing a 15-year, $280 million contract with ucla. it's believed to be the largest deal and tops nike's deal with ohio state. the under armour shares at 2.5%. and shares of monsanto higher after they rejected a buyout off. they call the offer inadequate but is open to a higher bid. and hp enterprises after hour announcing it will spin all of its enterprise services unit and merge with computer science csc. the transaction is expected to be completed by the end of next march. now let's send it over to susanly for susan ly
4:35 pm
li for an earnings alert. >> that beatses the is the i mats calling for 321 and also for revenues. $2.3 billion versus estimates calling for 2.25. the stories and what we're looking at in the shares, it's surprising we're not seeing more positive reaction because they raised guidants when it comes to revenue and earnings. eps growth of 40% to 41% in 2016. back to you. >> susan, thank you. any idea why stock might be lagging here? it's been a tough environmental, right? >> yeah, but this stock has been such a great performer. ice outperforming any of the competition. it's not cheap. you have to cheat by a mile, raise by a mile. >> it's only down less than 2%. now, speaking of taxes, the irs estimates the actual tax gap is about $460 billion but it seems irs has to take some of
4:36 pm
the blame for it. a report shows two-thirds of those aren't reporting and that's bates isn't required. they're confused, how much they make and whether they own any tax. caroline brugge never is managing director. she led this study, and the most interesting thing to me is what is it meant they they're don't have to report? >> the irs made some changes to the 1099 miscellaneous form that says if you get any earnings paid by a credit card, you have to use 1099 k form and you only use that if you have under 200 transactions. >> so people bolo that threshold are not reporting it? >> it's not that they're reporting it. it's not that they're getting a 1099 form and the irs isn't getting it either.
4:37 pm
>> mike, my head is swimming. >> i wonder, is this a matter of the economy has moved past what the provisions of the irs rule making and reporting process is up for right now. can we ease lie blug this gap? >> i think the rhode island s needs to realize there's a growing population of taxpayers out here and that there are existing rules. >> how fast can they get something passed without going to congress and maybe they should go to congress and figure out a bigger grand plan for this particular issue. >> well, when we -- when we reminded them about this issue because it was first raised to them in 2014 and when we reminded them of this issue and its relationship to the sharing economy and how meaningful it is for the millions of people who are earning income in the sharing economy that on average earn well less than $20,000,
4:38 pm
they responded they're going to be putting out guidants imminently. >> there are some companies like uber who are more proreactive, right? >> absolutely. they're sending one to all of them regardless of the pay. >> how much of a tax gap are we talking about this closing? >> i think what's important here is to know that we do have data that self-employed small business owners are generally viewed to be one of the major contributor of the tax gap by more than 23%. $194 billion is what they currently contribute to the tax gap and the numbers haven't been run for whether or not the sharing economy projections are specifically more than that. >> and caroline, people have gone back and forth whether the gig economy is kind of all talk or really a transformation that's happening across the work force. what does your tax board tell you? >> we see that the sharing economy is a high-profile example of a major change that's
4:39 pm
happening in alternative worker arangements. from 2005 to 2016 there's been a 66% increase in alternative work arraignments and that was done that they put out last month that they cite to in our report. >> fascinating. thank you for joining us. >> absolutely. thank you for having me. andretti has been racing since he was 20 years old. he'll join us ahead of this weekend's indy 500 in just a bit. first a san francisco jury is deciding an oracle case. we're bringing you the latest after this. you're watching cnbc, first in business worldwide. ♪ [ male announcer ] tora bora fallujah argonne khe sanh
4:40 pm
midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪
4:41 pm
but i am benedict arnold,e facthe infamous traitor.ember. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars. [phone buzzing] [engine revving] [engine revving] [phone buzzing]
4:42 pm
♪ some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection. welcome back with some breaking news. susan li, whatty you tell us? >> we have oil back to $49 for the first time since october. there's been a drawdown. it looks lying crude stocks fell. that's double what analysts were looking for. they were predicting a decline of 2.5 million barrels. this comes off the report on friday which showed the strongest april demand for petroleum in eight years. so maybe there's some supply
4:43 pm
demand dynamic. back you do. >> susan, thank you. this is a big drawdown, stephanie. >> it's huge. all of the data that we've seen in the last couple of weeks/months have gotten better slowly but surely. michael and i were talking the dollar has been going higher and you would think oil should then pull back, but actually it's held in and a lot of it is due to the supply situation. i think this is a group you really want to be involved in. >> even so, the group was lagging today. >> sure. it's had a nice run. >> i don't think anybody is willing to bet that heavily on higher group prices rye now and it sees everybody has been waiting for the pullback but the crude has been so firm in the face of all the mackerel noise that would suggest we pull back, and this is why. >> obviously. crude over $49. now, google and oracle's bat could could have a major
4:44 pm
outcome. we have the latest. high, deirdra. >> reporter: at the courthouse behind me, guys, the jury hasn't left for the day. they've been deliberating since early this morning. at stake, a potential $9 billion payday for oracle, a sizeable amount of google's cash stash. now oracle claim thad google violated its cop rite. google for its part said it was fair use of that code. now, this trial has been dragging on for nearly six years and the battle between the two tech titans has become increasingly heated. oracle's lawyer telling the jury you don't take property without permission and use it for your own benefit. google took a shortcut and at oracle's expense. meanwhile the chairman had this to say. >> we're part of this. i think it hurts oracle because
4:45 pm
they own java and need to promote it into this new world and it doesn't make sense to me that they're in that path. >> what about that? aren't we -- >> there is now an open source version of all of this which they can use and i would recommend that. >> >> reporter: now it's up for the ten jurors to see who's right. it will ripple across the entire tech industry as you guys said. now at stake, as i mentioned, open source. it is a pillar of the software industry and a huge community of developers and startups rely on it and they may not be able to defend themselves against future lawsuits the way google can. for now the tech industry remains on edge until we get a decision and the jury will be reconvening right back here tomorrow morning.
4:46 pm
we'll be bringing you any updates. back over to you. >> deirdra, thank you so much. stephanie, you were saying how well the tech has been doing leitesly. what happens in this case? >> i don't know what the outcome is going to be. i would say they win. it's a tough case, right? it's very tough to prove. but if they do get it. if they do win, i think it's very big because they would get that revenue royalty at 100% margin. so it would be a pretty big number over time and i don't think it's that material if they lose and i don't think it's a big deal necessarily for google. >> apparently this won't kill android. >> exactly. that's a big question. even if oracle were to win, does it mean it's going to create this other little world of people trying to force the other types of patents using similar logic and just create, i think, more frictional costs in the world of software development. i don't know if at all that would be the case, but to me that tees outcome.
4:47 pm
>> for sure. well, the indy 500 is this weekend. our new england guest has racing in his blood. he's third generation marco andretti and he'll join us next as he makes his way to post 9 in his fire suit right after this.
4:48 pm
4:49 pm
welcome back. this weekend mark as historic event of the indycar series. they're celebrating its 100th anniversary this year and the race gets under way sunday afternoon. with us now at post 9 is marco andretti of the legendary andretti racing family who will be trying for his first ever indy 500 race come this weekend. welcome to you.
4:50 pm
>> thank you. >> we wondered if the names would be a good stock portfolio. but the new york stock exchange was a sponsor? >> yeah, my rookie year. my title new york stock exchange. it was at the time through the archipelago go sponsor. yeah, we had a lot of fun. that was for two years. now i would invest in dr. pepper snapple. >> i think you're contract actually required to say that. >> how difficult is it for you to go into the race this weekend versus when you made your debut? you almost win the first time, how much more have you had to develop as a person and driver to get to this part to win? >> at that point of my career i thought i would have five of them won already. but it makes you respect the place. my father was never able to win it. and as a family, we've been extremely dominant. we've won with my grandfather in
4:51 pm
'69. i have five podiums there, but that's a place where you're either first or it doesn't count. you're either an indy 500 winner or you're not. but we feel extremely confident this year. >> i'm curious going into a race weekend, because of the car, because of your preparation, how do you teal? >> it's how the race unfolds. the confidence comes from the race car, how much i have in traffic, the balance. this is my 11th shot at it already. you know, i'd like to think i know what i need from a race car there. we'll have to see. it's going to be very challenging conditions. almost 90 degrees. >> oh, wow. >> when the track temp's up, it takes a lot of grip away. it makes them very hard to drive. >> how do you prepare mentally? is that something that you do? >> you can wake me up out of my sleep and i can go drive an indycar. i love it so much. it comes second nature. >> it's interesting to go back
4:52 pm
to the '90s, the indy, nascar, it feels like more could be done. maybe to make them feel integral. the 100th race this weekend will be crucial. in the same breath we're talking about the nba, the nfl, and so forth. >> we need to be on sports center. the unfortunate part about our business, we're on there when there's a fatality, when there's a crash. we need to be on there for good things. maybe we can be on there if andretti wins. >> no pressure. >> no pressure. i don't have that answer. but i think what we really need to do is piggyback off of the 100th. this one will take care of itself. the magnitude that this event is going to be unbelievable. so we just need to build on it, and try to snowball it from there and keep it going. >> some of the other sports like wrestling have gone direct to the consumer, too. they know they have a strong enough following. they're like, we'll stream this
4:53 pm
right to you. you can pay us month by month. do you think something like that would make sense? >> that's not a bad idea, yeah. that's a hard one for me to -- i don't really know the statistics or anything like that. you know, i think that's a good start for sure, yeah. >> what about the auto companies themselves, in terms of their commitment to indy racing. obviously you're with honda. is it important for them to showcase themselves in that way? >> i think so, yeah. we just had this internal conversation that it's so important for honda to, number one, be on the poll with james henchcliff, but it means a lot, when they're trying to sell cars. even talking to my buddies, they're not going to buy a honda if the hondas are slow on the racetrack. and then vice versa, with chevrolet. the more manufacturers, the better, the more money and it drives the whole train forward. >> best of luck this weekend. >> appreciate it. thank you. >> hope you can enjoy it and do well out there. thank you for coming down. >> thank you very much. thanks for having me. >> marco andretti.
4:54 pm
the date on your milk carton says may 17th. but can you still drink it today? jane wells presents her findings when we come right back. up, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. prge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead.
4:55 pm
he can't lift the hammer. it's okay though! you're going to change the world.
4:56 pm
welcome back.
4:57 pm
looking at shares of csb, hewlett-packard enterprises will be merging interenterprise units with the company. those shares higher throughout the hour. they're now up nearly $9. nearly 24%. we've all been there. you check the date on your milk carton and it says it's expired. but is it really? we asked jane wells to investigate. jane? >> reporter: hey, kelly. you can't have the indy 500 without milk. now, every year americans throw away about a third of the food we produce, according to the usda. now there's efforts to cut down on that waste. this milk has a best buy date of may 30th, next monday. the bread here, best if used by june 2nd. the bacon has a sell by date of june 18th. what does this all mean? usually it means after that date, i've got to throw it away. no, that may mean when it's best, or peaking, it should be
4:58 pm
sold. when does it expire? milk can last up to at least a week later. i use the smell test. to cut down on this waste, a new food date labeling act is being considered in washington. here's what it could do. we could set national uniform standards. the proposed law would have two labels, a best if used by date would mean that that's when a product is peaking. but still good. riskier foods like meat would carry expires on dates, which means after that date throw it away. a lot of states won't let you give away foods that are after this date. some food producers are coming online to support the idea. even though you would think it maybe actually hurts them, because a lot of times people throw away a gallon of milk and have to replace it. >> the turnover will be a little bit lower. jane, thank you. you know, the milk is like you
4:59 pm
buy it in a carton off the shelf, no big deal. >> i'll buy that for the kids' school lunches. i think the world's coming around to my way. you have a nose, and you can see if mold is growing on the bread. >> it makes me nervous, stephanie. >> right off the shelf, exactly right. but you look at it, if the cheese has mold on it, it's obviously not good. >> is it good to scoop that part off and eat it? >> no, i wouldn't do it. >> bread? >> no. why go there. >> would you do it? would you scoop out the -- >> the cultures are healthy for you. >> you can have that. >> okay. i don't know what to do with these things. >> the reason cheese was invented so milk could stay around a long time. >> i tell you, the same thing happens with chicken. that date, i would really automatically throw it away. but there's a color test there. not only is the smell, but if it's a little yellow, you've got
5:00 pm
to throw it away. >> it makes me very nervous in the kitchen. we're out of time. can you throw a key word our way? >> follow-through. >> oil inventories. >> i love you guys. stephanie, michael. that does it for "closing bell." "fast money" begins now. "fast money" starts right now. live in the nasdaq market site over times square, i'm melissa lee. tonight on fast, missed today's rally? one of the most widely followed strategist on wall street, why the s&p could rally another 10% from here. the latest round of funding valuing snapchat a reported $22 billion. is the company on the path to become the next facebook or twitter. and later, is the market worried about a potential donald trump presidency. the possibility has got traders passing around one scary

59 Views

info Stream Only

Uploaded by TV Archive on