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tv   Closing Bell  CNBC  June 2, 2016 3:00pm-5:01pm EDT

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experience. >> yes, those who want to get into fewer accidents. the safety aspect is huge. >> summer sunday, driving on down the highway it's great having you. >> thanks for watching "power lunch." >> "closing bell" starts right now. ♪ we're not going to take it no, we ain't going to take it we're not going to take it anymore ♪ >> welcome to the "closing bell," kelly evans. >> with the air guitar version, i'm bill griffeth. coming up, we're going to talk to one of the men behind this song, dee snider. he's going to talk about the rock and roll exhibit. he's been spearheading this thing. we'll talk about that conversion, even a collision between rock and roll and politics this summer. and in other news united is
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updwrading its international business class. we'll get those details plus we'll talk about which stock in the sector hee likes now. >> i wonder if they charge bag fees for that international business class. jamie does want to talk about that. meanwhile billionaires going to space. elon musk and jeff bezos soungd off on their intergalactic goals. musk says why his company will send people to mars even before nasa does. plus, an exclusive interview. we're going to get his take on mergers, deals, ipos and work/life balances for their junior bankers. a lot to get to. let's get to "closing bell." with the down 25 points, joining us today, wasif latif, and brenda. keith bliss from cuttonen
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company. he's at the post 9 stock exchange and rick santelli checks in from chicago. keith, we have the jobs number tomorrow. if it's a strong number, do you believe the good news will be good news for your the stockmarket? >> i believe it's stuck where it is right now. we're 34 points from the all-time high we achieved last may. when you look at the charts on the nasdaq and s&p, we're back to the april highs we achieved. if we barack through those, we should be a little higher. i don't see the stockmarket having a catalyst whether the stork market is good, bad, or indifferent. i think a rate increase is off the table for them. i think the stockmarket will react very indifferently to whatever the market is tomorrow. >> one variable meanwhile is the price of oil, brenda. moved lower. it's been hanging in there. does that surprise you? >> i think what's interesting is
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the bump back up after the opec decision which reacted to the eia data. . it responds more to that than oil producers. >> now production has been coming down, brenda, and i know that's been contributing to the price. once we get back to $50, we keep hearing maybe that's the pivot point to a lot of producers. would you expect production to resume for a lot of guys who have been shut in as a result of the decline in oil prices? >> i think that's the big question mark. in terms of technology, the production of the u.s. market is very able to rev up its production. the question is more connected to finance, the conditions of companies. so many companies have gone bankrupt, and the question is will banks and financial institutions be ready to jump back in at 50.
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i think it's more a question of the market rather than the technology and the fields themselves. >> wand receiand wasif, you don stocks too much either, do you? >> u.s. stocks are a litsing overpriced but there are sectors that we see such as energy and materials and industrials. i think to your earlier point, if the data tomorrow comes out more stronger than expected and the market may not react too much butunderneath it you could see financials and those types of sector doswell on the back of improving economic conditions and the bond substitute such as the staples and the utilities of the world may not do as well, but the overall market will move a whole lot by itself. >> rick, the expectations for tomorrow are not all that high. you know, i haven't heard anyone guess. 200,000 for this jobs numbers. what are you guys expecting, and
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what do you think the market will do with it? >> cnbc has been all over it and how the strike could have an impact on this data set, and i can't argue with that. no, the whisper number is not much higher. the whisper number is pretty darn close to what we received last month of 160,000. but i look eight from a bit of a different tangent. is one number after all these years really going to make the difference? i mean i don't know. it sounds absurd. >> ahead of an important fed meeting. >> no, no, no. i get that. i get thachlt i'm just saying if this one number is going to make the decision whether or not to normalize after all the history we've had, after all the quarters we've gone through, i think it's a really crazy argument. i'm not questioning the question at all. and i have to tell you, i'm getting a real education on brexit. i had jim bianco today and i think the way we were all
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looking at brexit, the fact it shouldn't be very disruptive to matter the outcome, and i'm starting to change my tune on that. i'm starting to think there's a bit of a parenting issue here, that the group in the eurozone that's going to stay intact no matter what the uk does is not going to make it easy if the uk leaves because it could set an example that would unleash forces of exodus on the continent. i think the more you ponder that and make it a chess game, i think there's no chance, no chance the fed is going go before brexit. >> oh, well. okay. you mention thad you like the energy space. why is that? >> well, it's just valuations, you know. we invest based on valuations. that's what drives portfolios and returns. there's a lot of noise and momentum that can happen. valuations is something you can argue that you got such a strong
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pop and energy in oil earlier in the year because there was so much pressure on the downside. we like a lot of those sectors that i talked about mainly due to elevations. the trigger or the catalyst may be due to anything and may not be anything in the short run. >> brenda, you know, he used the term "parenting issue." we got to the last 30 years to be an adult in the world of oil, but they certainly lost a lot of their cachet in the last decade or so. so who do we look to now for the greatest influence, do you think, in the world of oil production right now? >> i think we got too used to low oil prices. we think no matter how much we think oil works in cycles is here and now and is going to stay. there's nothing that cures low oil prices like low oil prices,
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and we've had two years of lower investment in the history of new oil production. so the stage is set for an increase. while we're very happy that we don't have a cartel anymore that's calling the shots, no one's calling the shots. as you said, there's no adut in the playground and we need to be thinking about energy security as a policy issue because opec isn't going to be there to provide that oil. >> okay. very quickly before we go, because i see we have breaking news. 2100 has been talked about as a key level for the s&p. what are you watching right now? >> i'm watching two things. as much as you can watch on these weak volume days. it's the transports. they're actually down while the major averages are up. that's a counter move. also the russell. take a look at the russell. the russell tried after the august selloff last year ten times to get above that 1160 to 1165 level and it failed. we're back there again.
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if we could stay up there and maintain, we could push for higher. i'm not sure it would provide the catalyst to get to the all-time highs, but it could get us back up there. >> very good. thank you for jiening us. we appreciate your thoughts on today's market. >> thank you. >> we're going to julia boorstin. is this for the breaking news, guys? all right. very good. forget about the moon. spacex ceo elon musk want is his company to be the union pacific of mars. julia boorstin where musk is making headlines. julia? >> well, bill, elon musk wants the humans to be the species. he has a plan for spacex to do launches every two to four weeks, more than anyone else using reusable rockets.
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he explained a plan to colonize mars by shipping people and cargo on a six-month-long journey. >> we're going to send a mission to mars with every mars up charity. if things go according to plan, we should be able to -- we should be able to launch people probably in 2024 with arrival in 2025. >> now, the other brilliant billionaire is jeff bezos. he talked on stage how his goals for space are different. he says that space exploration is necessary to help figure out,000 make the ertz a better cleaner place. >> we know about the source system. let me assure you. this is the best planet.
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>> now, musk is definitely more excited about living in outer space. in fact, musk said if he could choose a place to die that mars wouldn't be such a bad place, but musk may not actually be so concerned of questions of life or death. he explained in some great detail this theory that we're all just living in a matrix-like virtual reality. guys, back over to you. >> meanwhile as we try to value his business, julia, i do wonder about the extent to his sort of visions and dreams -- listen, you love to hear somebody who talks so promisingly about the future, is that why people are willing to shell out the money fundamentally for his electric cars? >> well, i think there's something compelling about listening to somebody who seems to think they know what they're really talking about. talking about going to mars in the very, very near future. before he talked all this mars
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stuff, he talked a lot about his cars and how he thinks autonomous vehicles are going to be totally commonplace in just two or three years, so i think there are a range of things that musk can talk about. some that seem a lot more tangible than others. and i think the thought of buying a car from someone who's the basis of iron man are pretty compelling. >> i get all, that but i just get the sense that all the space stuff between elon musk and jeff bezos are more like billionaires' hobbies, right? i don't gather that the business world is all that enamored of it. do you? am i misreading that? >> i think people were fascinated in this conversation listening to musk and bezos talk about space exploration, but i think it's interesting to get to the heart of why they want to do it. for musk at least it's about protecting the species.
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that if earth become as place you can't live, we need to think about mars. for bezos, it's about improving life on earth. they have this grand vision that is about helping people. for them it's also cool to think about than just the next cool app or something on the internet. >> thank you, julia boorstin. i agree with you. yeah, yeah, yeah, jeff and elon, that's nice you want to think about going to the moon. but how are you going to make money for tesla or amazon. >> right. the s&p broadly is up 2 points but most significantly it's above 2,100. >> united airlines unveiling new plans to win back alienated business fliers, but is it too late. we'll have that story coming up. and the number one airline analyst on the street jamie baker will tell us how long industry profits can rise as
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long as oil prices remain cheap. >> also ahead, john waldron discussing merges in business. you're watching cnbc, first in business worldwide.
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now we have our breaking news. it's about paul ryan. john harwood speaking in. >> paul ryan put out an op-ed, tweeting he's going to endorse donald trump. he was not going to endorse him. h has done so interestingly right now as hillary clinton is giving a speech in san diego, blaftsing donald trump as president. this is a useful counterpost for the trump campaign to come out and have paul ryan say, yes, i'm going to be voting for him. he said in his op-ed that he was confident that donald trump would help the house and the agenda even though they have significant differences on issues like trade and entitlement policy.
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we'll see how those work out over the long run, but right now donald trump is please that paul ryan is saying he's going to support him. >> are we splitting hairs when he says he's going vote for them. this is not an official endorsement. >> i asked his staff. i have not heard back. interestingly paul ryan sent this note from his personal account, not house speaker account. he did it by written word, not standing next to donald trump. there's some distance there. but in the end it's going to be a distinction without a difference. if you're voting for somebody, that's a signal to people who think like you do that they should do the same thing. so paul ryan may be trying to keep a little distance in the op-ed. he says, i'll continue to express them when i think it's warranted. but this is a signal that donald trump was looking for. >> and the timing comes as hillary clinton is giving her foreign policy speech right now.
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thank you, john. >> you bet. >> john harwood there. united airlines ceo oscar mun yoes is wanting to beef uf profits. phil lebeau spoke with him a little while ago. phil? >> this is the new powe lars business class that united will be putting in all of its international flights starting in december and rolling it out over time. you've got aisle access for every seat, privacy access you don't have to be sitting shoulder to shoulder with the person next to you. we've got some video about what this is about. it's not just about the seats. it's about a whole new image and approach to handling international business travel which is crucial for the bottom line of the airline. it rolls out starting in december. there's also going to be revamped business lounges so when you're going on an international flight, you'll have a chance to get a different flavor from united. betting deal with saks fifth
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avenue. if you take a look at where it is relative to its peers. osc oscar munez believes he's got it. >> we've approved along with everyone. it moves us ahead. b, the human connection that we're providing is truly going to be different. >> guys, this is all about the seat when you're traveling internationally. we don't have time to wait for it to go all the way down, but as you take a look at the shares of united, it's been a bit of time. i'm going to take a nap while you talk to jamie. >> how tall are you?
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6'5"? >> 6'5"? i'm 6'1". 6'5", i ought to be playing basketball. >> thanks, phil. nearly $40 billion. on the back of lower fuel costs according to a new report from the air transport. the aforementioned jamie baker. he's with jpmorgan. he joins us right now on this exclusive. jamie, welcome back. >> good to see you back. >> first, just broadly speaking, how do you assess the airline right now? are they just thanking the oil market? is that why we're seeing that? >> you know, the industry has paid under $2 per gone for fuel in the pachlt it did in 2005 and 2006, and yet at that time the industry lost billions. u.s. airlines which only account for a little more than a quarter of global capacity are making up half of that level. american airlines this year is going to learn about what it on
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as recently as 2012. i get tired of typed the word unprecedented in all the research i put out, but time and time again, all of the output is without historic measure. we're at new highs. >> jamie, that said, it's so interesting to compare it to the auto space where you have the scorching pace of auto sales because of concerns about the future pays. as good as the airline business has gotten to be, there's a lot of concern about the slowing demand trends lately over capacity, lower prices and maybe even price war, all of those things. are those all hurdles the industry is going to ee veenlts annu -- eventually clear here? >> we need to see improvement in unit revenue, and we're confident we're going to begin to see that inflection point mid to late summer. the industry is engaged in self-help at this moment.
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we're seeing further incremental capacity cuts, five fare increases since the beginning part of this year. managers realize in order to satisfy their owners, they have to show resilience and pricing power and we think we're on the precipice of improvement. >> speaking of hurdles, before we can get on anirlines jet w very go through tsa and all the security -- all the fun things that entails these days including the long lines we've been expecting this summer. i know delta is trying to do something to speed up the process, but is there something the airline industry can do to improve that horrible experience for travelers? >> look. the bulk of the responsibility falls on the shoulders of tsa. you're right. they're going to be taking steps to speed up that process, maybe having lanes for their own employees -- or rather their best passengers. at the end of the day, we went through an event like this when they initiated 311 rule,
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remember, you couldn't bring full-size toiletries anymore. it did slow down the market, so the industry is going to get over this hurdle >> how globalize dodd you expect the business to be for the u.s. carriers going forward. in other words, united today we're learning is offering more flights into interior china while at the same time they're trying to keep some of those foreign middle eastern competitors out. how does this play out? >> the domestic market has fully matured at this point. this is not a growth market in the lower 48. we had the benefit of going first. we invented commercial flight, we deregulated before the first. there's not a lot of growth hero above and beyond what the economy produces. globally, that's a different karks ten years ago there wasn't much demand from here to china
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or india, hered on and so forth. for them to compete, they're going to have to up their offer, be more consistent. >> before we let you go, one of my favorite topics, also one of yours. baggage fees. spirit air is now going to be charging for carry-on bags, is that a thing of the future or what's going on here? >> i have good news. the airlines are on the cusp of not charging for the bags. things have to come. pizzas have to stop charges for toppings. phones have to stop charging for extras. people have to man up. this is how things are priced.
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>> bill, are you listening? >> you had me for a second, baker. oh, well, we can only hope some day for rainbows and unicorns. >> always a pleasure. give me best to dee snider. >> he's here. before we go, brendon buck tweetsed out, we're not playing word games. feel free to call it an endorsement. that answers paul's announcement. that's a pretty big headline. >> there there we go. coming up, goldman san jose sharks co-head of investment banking tells us what wall street giant is doing for work life balance. up next, dee snider. we'll discuss the influence of
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politics on america and his friendship with donald trump coming up after this. andrea sikon. medical doctor from cleveland clinic, watson, let's review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep. you sound like a lot of medical students i know.
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i stay focused 24/7 and never sleep. you wouldn't order szechuan without checking the spice level. it really opens the passages. waiter. water. so why would you invest without checking brokercheck?
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check your broker with brokercheck. the rock and roll hall of fame has opened a new area, the collision with rock music politics. it is called louder than words, rock, power, and politics and it
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looks at some of the biggest names in music and how their work affected political news. >> twisted sister desnierd helped launch that exhibit. first he joins us here at post 9 for more. thank you so much for being here. >> thanks for being here. that was not a wig. one of the misconceptions. i was my hair. it's fantastic. >> you've got the hair. >> yeah, the product is there if i take the product out. >> do you want to influence politics or music. >> one of the finger first things i have is 1955 to today, 2016, which is the years i've been alive and it seems that initially politics was investigated involved with the music. a lot of concern. as much as it was in the '80s with the lyrical content,
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physical performance of elvis presley and things like that. it seems like politics meddled in move before music meddled with politics. >> we opened with your most fang some "we're nothing going to take it." >> yeah. the one. >> it's the most appropriate channel in politics today. ironically donald trump originally had your permission to use that in his rallies until you rescinded that, is that right? >> yes. first let me say donald is a great guy and a class act. he's one of the only people who ever called to ask and use the song. politicians and sports teams use it willy nilly. he called me up. he's a friend. he hadn't even campaigned. it's a song about rebellion, i know you, you're going to be raising hell, go for it. and as the months went by, some
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of the things we never spoke about over drinks and dinner, i called him up and i said, donald, i can't endorse you here. i can't back your play. >> but he didn't fight you on that. >> he said fair enough and stopped that night. i say he's a class guy, you know. a friend's a friend. you know, say to people, we all have friends. we all talk about politics, religion, or the wall. we just have a great time together. so we're still hopefully friends but he recollected my wishes. >> but we do find ourselves this political season especially where people are starting to broach those sensitive subjects where they wouldn't have otherwise because of the angst that we're all feeling about this season, right? >> yeah. one thing, you know, donald trump is shining a light on some subjects that have sort of been hiding in the shadows and people are coming oup because he's
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voicing -- he's a voice of a certain percentage of the population and he's given a voice. i think it's important. i think people need to with aware these problems aren't solved. just because we had black president doesn't mean racism is gone, for example. so i'm doing another version of "we're not going to take it" releasing soon, just a piano and stark. >> unplugged. >> unplugged version with a new video that fiengs to be sort of saying, hey, you know what people? wake up? there are a lot of problems in the world and they're not going to get better unless we're proactive. >> dee, thank you so much for taking the time. >> i'm waiting for the action to start. they said any minute. >> any minute now. and if you're real good, dee, we'll sometime tell you how his wife influenced the market and caused a bubble. >> oh, yeah. great outfit. great outfit. >> thank you. time for a cnbc news update. >> i don't if i can follow that,
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kelly. that's hard to top, but we'll give it a try. los angeles police chief scharly beck says the man now believed to carry out the ucla suicide campus went out to kill two professors. >> sarkar was heavily armed. walmart is testing drones to help it manage its warehouse more efficiently. i it says it could roll it out. a bridge in upstate new york came tulling down today. the state department imploded the bridge where nearly 35,000 pounds of explosives. a new bridge is set to reopen next year. and a new survey of 1,000 full-time office workers found 71% had their lunch stolen from
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shared refrigerator at work. but interestingly enough, only about a third actually admitted to taking something that wasn't theirs. overall, men were nearly twice as likely as women to commit the improper snatching. but bill would never do anything like that. that's the cnbc news update. >> that reminds me. next time you make a peanut butter and jelly, would you please use grape. i don't like strawberry. >> i like it. >> i think it gets pushed to the back. >> i can't quite square those two. >> thanks, sue. 25 minutes to go. dow's at 35 points. the action looks a little bit like yesterday. we have been turning a positive into the close. the nasdaq's up nearly 4. up next, goldman sachs co-head of banging is optimistic about m & a the second half of
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the year. he's also confident that his firm's new work life balance initiatives is making a difference and he'll join us coming up. stay tuned. at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. 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
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so far we've seen a $1.2 billion estimated loss to banks. job cuts. it's not been so kind. >> join us in an exclusive interview john waldron. welcome. >> welcome. good to have you. >> thank you. we've started to see a trickle of companies going public, but, man, what a brutal start to the year and china making deals and pulling back. do we have a pivot point where now it's going to be more like last year or is it kind of the top? >> the first quarter was marked by market volatility and it's not the new england of m & a. gyrating equity markets, china, oil, it created an environmental where it was difficult to get
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deals done. down 20%. not really surprising given the volatility in the marketplace. it's getting better month by moent. m & a if you think about it, it doesn't start and stop the kwa an equity business would go. we're feeling a lot better now, i do think the second half of the year will be better, you can see it in the backlog, the pipeline, the sentiment shift, the board rooms. so we're pretty constructive on the marketplace. that you're talking about it getting better here. is that cost-cutting on lloyd blankfein or somebody else? >> every year we improve our staff, which is typical. wi deal accordingly. this year is no different.
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obviously the marketplace has been tough never the first quarter and it's continuing to some extent in the second quart eer. more on the market side, less on the m & a side. if you look at the overall volumes, they're still very, very high. we're not immuchblt our process of cutting the head count continues and it may go a tad deeper and take longer but it's not a dramatic moves. >> what are the types we're going to see here? it feels now like we're seeing a lot of spin-offs. hewlett-packard comes to mind. alcoa. what type of environmental are we shipping into? how is it different? >> we're still on a low growth environmental, low rates, very high margins and a very tough growth environmental for companies to continue to operate in. and that begets synergies, desires for companies to try to find ways to rationalize their own businesses and often a traction is the better way do
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that. the second thing i would say is the moorkt place is really rewarding companies that are more focused and create more scale with meeting franchise, and in cases where there are multiple business lines, often what they'll do is get better in thes by which may be through a transaction and a business where they're not as big or relevant, they'll shed or spin or spell. >> so i'm not going to get you the talk a deal book but will we see more with energy? pharmaceuticals, we've seen a lot of deals and nondeals as well wrchlt do you see it happening? >> we see a lot of technology in the technology world, we see it not quite at the pace it was running at last year, but the forces and conditions and health care space are still very much there for more consolidation, so we expect more transaction volume there. i think you'll start to see more in the industrial land scape.
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i think that will start to change. >> on the industrial side, is regulation going to don't be a concern? it feels like when there's an center that's mature enough that's consolidating, it seems like the brakes have been put on them. >> there's no doubt it's challenging. it's a natural outgrowth of thachlt we can certainly have a debate about the political environmental in the country. so i think it's clear that it's tougher. i do think it's a little overstated. there haven't been that many deals that have been stopped. they do tend to be higher profile. they get reported. but it hasn't been that much of the volume. i think as you get later in the year, close to the election, it gets more complicated and we're certainly seeing some of that behavior now. >> it seems like last year there was a rush to get these deals done perhaps before the feds starting raising rates. now we're talking about raising
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this month, more probably next month. does that have an impact on your business? do we start to see a slowdown as a residual of that or a rush? >> it can cut both ways to your point. i think there's still a bias for action in the m & a environmental. i think there's a way to take koftss out and find ways to justify stock prices and show some growth in earnings which is more likely to come from the bottom line than the top line are still there. i think the cost of capital being as low as it is is an accelerant and if people think that's going to start to change, i actually think it's a bit of a propellant, not a detract ter. >> being a junior banker is a pretty brutal experience. you have endless excel spread sheets and power point presentations and deadlines over the weekend. what are you guys doing to make sure people want to make this a career for themselves,
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especially your younger bankers going forward. >> we spend an awful lot of time on it. i appreciate the question because it's something we're really focused on. we've changed the dynamic of our form and wall street to make this a training program. that's one of the major moves we made to look at this as an opportunity for somebody coming out of undergraduate school. >> hopefully longer but certainly longer than two years. 's one thing we're doing. the second thing we're focused on is really trying to improve the overall quality of the experience, which means we're probably going to have to use more technology and have more automation and more process -- more of the process work that we do that's typically been people. we'll start to be automated and more machine like and focus on the things that are more interesting. >> i'm going to mention one more, drybar. it turns out goldman, you know, there's a few people -- >> i have heard the drybar is quite popular.
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it's not part of our overall program but i heard it's a side benefit. >> john, thank you for joining us. i know you really appreciated coming on after dee snider of twisted sister. >> that's an unfair comparison, but thank you. we have breaking news on hillary clinton now. john harwood has more. john? >> kelly, her campaign, build it, she delivered a scathing attack on donald trump saying that his values were out of step with america's, that he was dangerous both to the american economy and american security and that america could not afford to put him in the oval office. here's hillary clinton. >> donald trump's ideas aren't just different. they are dangerously incoherent. they're not even really ideas, just a series of bizarre rapts, personal feuds, and outright
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lies. he's not just unprepared. he's temperamentally unfit to hold an office that requires knowledge, stability, and immense responsibility. >> now, this comes just a few days before the california primary where the primary season ends up. hillary clinton hopes to wrap up the nomination. she's still got to fight with bernie sanders, but attacking donald trump is a good way of unites democrats at this point so it could have a good effect there. donald trump sent out a couple of tweets saying, she didn't look presidential, doing a lousy diop in her speech. that's how he immediately responded. we'll see what happens in the next few hours. >> a lot of tweeting going on the last few hours in politics. john harwood in washington. we've got a few minutes left in trading. the dow up 21 points. chicago reportedly about to become mcdonald's kind of town, why mcdonald's is moving to the
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welcome bachlk one of the worst performers on the s&p.
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raising concerns about signet's credit operations. they own the kay's, zale's, at jared's chains. signet declined to comment. >> usually we're talking fed policy with him. looking forward to that. >> i have a feeling he'll draw it all together for us. >> i think he'll get it all together. >> they may provide better investing opportunities over the coming 12 months. he'll share why when we come back.
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about six minutes left on the trading. you would prefer to go outside the u.s. for better equity investment opportunities. is that because the fed is getting ready to start raising rates here? >> it's really that there's a real dichotomy between what the headlines are saying which is quite dire. you read the headlines about brexit, political parties, issues around greece. you dig down below that and the corporate fundamentals are actually improving.
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at the same time their profit margins haven't recovered. there's significant room for improvement in profit margins. >> i'm pretty surprised that you find partnerships in the u.s. >> we've been neutral and we're waiting around the energy prices. we've been saying oil should settle in the 35 to 50 trading range. now that it's closer to 50 we're waiting to see where things go from here. we think there's more near term downside risk. >> so you can only get involved in it if the oil price is higher from here. >> we'd love to see some clarity and certainty of stability right here. >> wouldn't we all. >> indeed. >> erik, thanks for joining us.
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erik can newt extend from neuburger. kelly is getting ready for james grant. today he's the diamond observer. >> yes, he is. >> right after this.
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they have the 2100 number that the traders are so focused these days, and we're holding just above. 2103. going into tomorrow with the jobs number. and oil, what a herky jurky day it had, bob pisani, a nonevent, no agreement kind of day, yet production is still going down. so we're waiting to see if we can get to $50 a barrel. >> when opec says nothing is going to happen and the saudis are boxed in with the iranians on that deal and oil is holding, that's a positive side. a late day rally, four days in a row we moved up. the bottom line is the market doesn't go down. we're still 27 points away from new highs. what i'm waiting for, i still don't have it, is new breakouts. new 50-week highs, still about 90 on the s&p. all of saud we move up 29, 30 points. we'll have 200, 300 stocks. a lot of stocks.
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75, 80 of them just below the 52-week high. >> thank you, bob. see you tomorrow. we're going out with that minor rally as we wait for tomorrow's job numbers. we'll have it at 8:30 eastern time. thanks. stay tuned. we have renaissancere ringing the bell. see you tomorrow, kel. >> the dow going out with gain of 45 points on the session. the nasdaq managed at 19 points. the s&p 500 climbing five points but look at that. managing to close above 2100. 2105. and the dow, 81 points down. joining the panel we have cnbc panel mike santoli here along
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with cnbc contributor stephanie link with tiaa global management. also joining us is "fast money" trader brian kelly and jim grant of grant's observer joining us. he published a note on signet jeweler, those shares closed lower, more than 6%. signet did respond. the company has declined to comment and we'll get to signet in just a moment. let's begin with the markets, mike, and what does the 2105 say to you? >> we've just been idling around these numbers. it's where we were as a hay in april. it seems as though a lot of markets are kind of idling right here. you have treasury yields sticky where they are, that's about a two-week low. so every one of these -- i don't know if it's waiting and seeing tomorrow's jobs numbers. i don't see it as a high station number because it could be spun different ways. we could be talking a verizon
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strike. waiting for final clarity perhaps about the fed. >> what about you, stephanie? >> it's funny. there's so much going on below the surface, they're not capturing it. adp, challenger, really good numbers, pretty good numbers. claims were pretty good. we had a conference where the banks were speaking at bernstein. they're saying that trading is a little bit better than expected. that came from jpmorgan. you had leadership in health care which is encouraging because that's been down and out but a pretty broad based sector participation which i think is very encouraging. so i think today was a pretty encouraging day. add on oil and it rebounded. >> that's right. >> you have inventories down 12 straight weeks. it's gaining momentum. i was pretty encouraged with it. >> at the same time, we had dollar general, dollar tree, also what we've talked about quite a bit, a few others,
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brian. what jumps out to you here heading into tomorrow's report but then, you know, looking ahead obviously to the fed meeting? >> well, for me it was about the fed oil. listen. the market was down relatively significantly. down nine or ten handles. as soon as oils turned around, the rest of the market did. that continues to be the story. you basically have to watch oil. now, if we get a strong jobs number tomorrow and you get a strong dollar in anticipation of the fed rate hike in june or july, you could see oil start to come up. that's still the market to watch to get a clue on everything else. >> jim grant -- >> hello, kelly. >> -- what's in your daily dashboard? >> it was a nice day. i smiled. well, for example, it's interesting that dollar general
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is doing so well when another came out with credit losses and much lower revenue than what they anticipated at signet. it has to do with credit for one thing. signet sells 60% plus of its jewelry on credit. >> that's up about 10 percentage points since 2008. >> yes. the receivables -- the percentage of merchandise has been steadily rising. much faster than sales recently. when you bring in a day monday, you get the diamond back. we heard a lot from the bulls today, as you can imagine. >> i bet. >> think there's a great deal of smoke.
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facebook has like a thousand likes on a call for a boycott of some of these brands. >> and this is the world's largest diamond retailer, correct? >> i'm not sure if it's the largest but it's big. somebody said something on facebook about diamond swapping. it's like 4,500 shares. so i think it's a great deal of smoke. people say -- they also said, e well, this is old news and the company has intimated it's old news. so is formaldehyde in lumber liquidators until it was new news. we think there's enough evidence of trouble to be bearish on signet. >> clearly the market thoht so as well. >> yeah. you mentioned cons as well.
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>> the fed did a survey of 5,000 americans and asked could you come up with $400 in an emergency. 46% could including like 1% of those earn 1g $00,000 or more said they could. to a degree people's savings accounts are their mastercard. people don't save is that did. but i think -- we don't buy into the notion that this economy is accelerating. with don't buy into the notion that a fed rate hike is a sure thing. to answer the question whether there's any mackerel implications of that, i think under the surface of things, indeed on the surface, over the surface, there's evidence of trouble in middle america and that also plays into the political season. >> so retail sales were up 4.2% last month, the data that we got. we've got pockets of strength and pockets of weakness. >> we've also got pockets of
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seasonal adjustment. >> you clearly had auto, housing, anything home related did quite well. i guess my question to you is -- i is this really more of a signet problem in your view because actually tiffany's didn't put that great of a number. maybe it's just this segment of retail that's not doing as well. >> let's look at auto which is an immense portion of production. jamie diamond was on the tape saying lending -- >> you still have 17 million stars. so you're having sales -- >> you're selling 17 million cars with stretched credit and i think the credit generally is coming to the fore, and i think that's going to be what's coming. >> do you want to comment on that? >> i think jim hit on it. we've seen some prime auto loans, the delinquency starting to happen.
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now we soo it happens with signet. now there's something else boiling out there. i'd be curious to ask jim, the fed seems intent upon raising rates in june. i can't imagine that you're a fan of thacht. what are they missing out there in the economy that's causing them to say, hey, we need to raise rates. >> i think to a degree that the fed is moving because it feels it has to. i think there's an institutional imperative quite separate and apart insofar it can be read. isn't that like hearing a retall investor saying we're going with the tape. so i think the fed feels it missed what it could have raised and now it has to for institutional face saving among other things. but i think if you just look at the evidence -- of course, one could argue either side, but i
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think the macroeconomic in support of a rate rise is very thin. >> do you think they're afraid of feeling a bubble again if they were to stay at these levels and let corporate debt keep piling up? eat areas you're talking about, it's not as though they were going to moderate on their own. so that could potentially keep going. >> there must be some office in the fed, perhaps in the tucson, arizona, branch that's keeping track of evidence of bubbles, but i don't think that's first and foremost. they want to look good. >> i think perhaps the fed is of the mind that it is at such a level right now they're not going to act necessarily as a great restraint on broadly economic activity and it dust seem as if they want to get to a point. also, i actually do agree with the idea they want to keep
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managements back on their heel as little bit. the corporate debt thing is probably a significant thing and i don't think you deny there's ragged end on the consumer spectr spectrum. it's always been there. banks aren't serving at that well at the moment. >> jim, before i let you, i do find it fascinating how much it's been when you're drilling. this is a change, right? it allows you to immediately get a sense of whether the customers with a business are dissatisfied or have concerns it could get to the core of these allegations. >> yes. the evidence of potential product contamination was there on the world wide web and that was when the stock was like 80 something and the stock was 119. so the great mystery is always when do facts become relevant. and people are talking about -- you know, the setup, you know.
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i'll tell you our men's influence is highly spotty. >> we appreciate you joining us here, jim. thank you so much, jim grant. let's get toinic chu with those numbers. >> let's look at broad come. the shares are moving to dwrup side by about 6%, 207 shares. they report earnings of $2.53 a share. that beats the analyst's estimate of $2.38 a share. revenues coming pretty much in line. $3.5 billion. they also raised their dividend by a penny to 50 cents per share. interesting news from broad come. those shares up about 6% from the past year-to-date period, 7% for the last one-year period. also, am ba really la moves to the flat side of things.
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they report earnings. revenues in line at $57 million. the company also authorizes a $75 million stock repurchase plan and they do -- we also do note here that their adjusted gross margins, profit margins were above some analysts' estimates as well. those shares moving to the flat side. but those two, at least for now, we'll bring you more as we get more on our side, kelly. back over to you guys. >> dom, thank you. >> some insight. >> sure. broad come. people were very nervous about icon. stocks down year to date. it's dramatically lagged, so i think that this is kind of a sigh of relief, but this is really -- the fact they beat the number, it actually says that
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they're able to cut costs and see synergies with the integration while you wait for the iphone noise to go away. i think this is quite interesting. ambarella, i think they had such expectations. that one i'm not as excited about, but for broad come, i think it's very encouraging. >> brian? >> i would agree with stephanie. i'm actually surprised it's not up more than it is but both of these, look at the top line. the revenue. it's not growing. this is the story of the market. we'll see if it continues to reward you. >> brian kelly, thank you. we'll let him get really to go get ready for "fast money." jonathan krinsky ahead at
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five. elon musk says only one of those companies is a contester in that space. the other is a pretender and that's next. the white house unveiling new rules on payday loans. coming up, whether this could end up hurting both consumers and the banks. you're watching cnbc, first in business worldwide. man 1: i came as fast as i could. what's up?
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tesla chief elon musk revealing who he thinks is ahead in the electric car space, and it's not going. >> google has done a great job of showing the potential of autonomous transport. >> right. >> but they're not -- they're not a car company, so they would potentially, you know, license their technology to other car companies. i wouldn't say google is a competitor. >> apple? >> that would be more direct. >> that would be more direct? >> yeah. >> you can tell that by the hiring pattern? >> yeah. >> how do you assess it? >> i mean i say like, you know, i think it's great that they're
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doing this and i -- i hope it works out. i don't think there'll be volume production sooner than 2020. that would be like the soonest. >> joining us now is carl bower who's a senior analyst at kelly blue book. what do you make of elon musk's comments on electric car space. >> i find it interesting. if he's pinning that, then they're not a competitor. i've ridden in the google self-driving car and it's very advanced and capable. maybe they'll not produce it.
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but they'll make sure others do. which is still pretty important in terms of the market. >> yeah, sure. >> i wonder as i look at the traditional carmaker, the stocks performing poorly. that's been the case for some time now. do you actually think this market is out there and going to overtake a large percentage of what we're seeing in terms of regular volume? it seems from one angle very supply driven. these companies want to deliver a certain product out there. is it clear the demand is going to be if there in any significant way? >> yeah, it is pretty clear. we've done some surveys here at kell kelley. they don't want to buy a second or third car as a kind of prae temd car. they wand a primary car that can be used every day and serve them purposes. if you give them 200-plus-mile range, that consider can exist. we've never seen that before,
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something that's $40,000, $200. they will. chevrolet has beat even to the market. that will be the first real test of wll it can replace the average car. >> when do you think these companies will be mainstream and will they be profitable in the every on set of these? >> i think companies like general motors who's already profitable and ford who's talk about their own car, they'll start to have more andmore electric cars that will make up their income in the next five years. of course, google and apple are as well. whether they're supplying hardware and software to other companies producing cars, i think they've got a history of doing quite well. i think they'll find a way to become part of this evolution and make money off it. >> all right. thanks for joining us.
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karl bauer of kelley blue book. >> these are hope stocks. these are hope stocks. the teslas of the world may work out. these are the ones that are doing well. that doesn't mean to buy things at 100 or a thousand times earnings or buy a bucket of companies that are losing money. on average, it's bad strategy. it doesn't mean tesla won't work out. but if you bought a bucket of teslas, bad. history says that would be bad. >> that ice the interview that will be online tomorrow on cnbc. >> the answer would be if you
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bought a bucket of teslas from four years ago, it might work out. the one that goes to the moon pays, so to speak, for the ones that go to zero. honestly, i think it's about temper meant. >> i might own a basket. not a bucket but a basket. pair it with general motors, which is very cheap, good dividend yield, maybe an auto parts company like lear so you can kind of get exposure to all of them. >> it sounds so reasonable. we have a news alert to get to. dominic, what's happening? >> the shares are up 5% p in the after-hours session. this after gap, the apparel retail, comes out and says that may comparable store sales were a negative 6%. so a 6% decline over last year.
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those comp store numbers broken down by brand. the gap brand was a minus 3%. banana republican, negative 11%. and old navy, negative 7%. they also made some commentary in their particular release that while their overall month of may was challenging, performance did improve leading into the memorial day, holiday weekend. remember, shares have been hit pretty badly. gap losing a quarter of its value and about 51% of its val yaw over the course of the past 12 months. those gap shares on the move. i also want to call your attention to citi. michael core beck is speaking at an investor conference where he sees second quarter net income relatively flat, quote/unquote,
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with the first quarter for the entire company, also that he expected second quarter trading revenues to be quote/unquote up slightly. it's always interesting when a ceo comes out and gives his forecast. citi moving on the comments that michael corbat is make at this investment conference. back over to you. >> thank you, dom. but this backs up what we were saying o a moment ago. >> so you have the big three at a conference talking about little better trends and now we wait for c-car and we wait for the stocks to react. we wait. >> you're waiting for the fed as well as the jobs report. >> coming up, why there may be a red flag on the high dividend stocks. and mcdonald may be packing
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up its bags and moving to the heart overchicago. we'll see if it makes easier to attract younger talent. stay with us. nry winkler ...and i know there are many myths about a reverse mortgage so i want you to know the facts. a reverse mortgage is insured by the federal government; you can get tax-free money from the equity in your home; you can use the money to pay off your current mortgage, if you have one; the remaining money can be used for anything; there's no monthly mortgage payments, and you still own your home! call today to get your free guide and dvd. it's explains how a government-insured reverse mortgage works... there's no obligation. one reverse mortgage is a quicken loans company. their licensed experts can answer all your questions. call to find out what a great solution this can be. don't wait... call now!
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welcome. >> thanks. i'm here at the kellogg innovation network conference doing some innovation thinking and thought process. >> what do you think about mcdonald's thought process here? >> they were thinking about it last year, moving into a skyscraper. it was just a matter of time. i think all the people in chicago were anticipating this move for a while. >> does it make sense to you, stephanie? >> i guess it does, but, tom, quick question, is it for crosscutting or a talent issue, hard to find people where they are? >> i think it's a driver for people. what you have downtown, kind of the airy you're moving to, is kind of the hot chic airy for millennial talent. anybody can come from the suburbs to the city but not as
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easy to go from the city to the suburbs. a side point is mcdonald's campus is old and neats a lot of work. they need to move. >> it makes me wonder what's going to happen to the campus once they leave it. >> exactly. up here there was a texaco. but i do think this mcdonald's move is definitely in theme with the suburban self-contained camp campus. >> you should see stamford, connecticut. if you want -- >> if you want the biggest trading floor ever built, you can have that too. >> tom? >> i think there's a lot of things going on in the suburbs. we've seen it in chicago.
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a company that's still headquartered there, sears. kraft heinz. that's the trend. >> what does it tell you about the health of the labor market? we get the big jobs report tomorrow. >> think right now it's saying that companies realize it is -- even though the unemployment market -- the rate is low at 5%, i think we're going to see it that way for some time and so it makes it more of an employee driven market, especially the markets, digital, analytics, and technology side. it's in the urban areas, whether it's san francisco, new york, or chicago like you mentioned. >> tom in miami. thank you again. >> thanks for having me on. >> tom gimbel. here's what's happening. the airport says an earn
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crashed. the pilot ejected and was uninjured. they urged them not to give in. >> to navigate this complex world america cannot shirk the man tell of leadership. we can't be isolationists. it's not possible in this globalized interconnected world. donald trump says that he will reopen trump university real estate school at the close of litigation tweetling that there's just so much interest in the school right now. he's fighting a lawsuit that accuses the school of misleading thousands of people who paid up to $35,000 for seminars. one man was severely injure and multiple structures destroyed after an explosion in downtown alabama. no word on whether the explosion was an accident or not. an investigation is under way. and boxing legend muhammad ali has been hospitalized in
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arizona suffering from a respiratory issue. his stay is expected to be brie. the three-time heavyweight champion also suffers from parkinson's disease. we wish him a speedy recovery. that's the news update. >> thank you. coming up, we'll head to walmart including how the largest retailer plans to use drones to check warehouse inventory. but first they're issuing strict new loans on payday lenders. could this have unintended consequences? we'll debate it right after this. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions
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the s&p 500ed a nearly 6. closed at 2105. people watching that 2100 level for quite some time and the nasdaq was up 19. the consumer protection bureau aiming to come in and regulation the loan pay market. the proposed rule would mandate lenders check the borrower's income and look at their rent, child support, and student loans
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and it would make it harder to allow rollovers. for more on whether it helps or causes more headaches, let's bring in our guests. welcome to you both. chris, first to you, why you do think this is such a necessary move? >> i think right now the payday lending industry is almost like the wild wild west. te and, listen. even the wild wild west had marshals. i don't think that's a bad thing. >> chris, what's your core issue? >> it's about helping people. oftentimes they say it's way for people to have short-term credit. i think it comes back to being able to prioritize thing. they need more ed indication, more guidance on,000 budget, do
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things they need do so they can take care of their families. >> john, what do you say here? >> i would agree, kelly, that the core issue is helping people and that people are treated farley but also not harming people. and who am i to say if someone's car breaks down and they need to get to work and they have these choices, not ideal, to get their car to work. there are other things that we -- the terms need to be clearer, but i think the choice of loan to take we have to trust people as rational adults. >> mike? >> what's interesting is they have to have some kind of loan underwriting standards here. it's not going to be, well, we're going to be giving away
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loans with high interest rates. it's almost a redefinition. >> i totally agree. there needs to be regulation and accountability from the consumer. they can't keep going back all the time and getting these loans. yes, they shouldn't be charge thad kind of an interest at the same time. >> the interesting thing, it reminds me of our discussion talking about how few americans can come up with a few hundred dollar in the case of an merge, even people who make over 100 grand. if that's the cause, is the logical next step, people will use these payday lending shops and even if we put them out ofs by, let's say, they won't be looking? >> i think people are always going to try and borrow, whether banks are going to give them this kind of money. it's a big question mark. i suspect they probably wouldn't and that's why they have this other issue here. >> there's a lot of chatter about companies basically allowing employees to get these
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short-term loans, advances on salary, so they don't have to pay a payday lender in this way. it obviously shows there's a pool of people who are chronically short of cash. >> speaking of people who can hold them accountable, why not let people go to their employer to get these funds. >> there are many ways the issue can be sofrled but i think it comes back to personal responsibility as well as accountability but people need to learn how to budget. i want them to tell them where the money should go than tell them where it went. when you start to budget, you can give yourself a raise because you understand where your money is coming from. again, if people are short on cash, there's a lot of things people can do. little part-time jobs as an entrepreneur. >> sure. john, what happens if they need that 300 bucks or 400 bucks or something like that.
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where do they turn? >> who am i or chris or others dictate that they take a part-time job or a second or third job instead of having an extra hour with their kids. the terms should be clear and we should punish people who engage in fraud. but otherwise the real way is to encourage competition like the employer advance use were mensing. it's so broad it could catch more than payday loans and if you require that much paperwork to require ujds writing for $100 loans, no one's going to do it. you might see the return of real illegal loan sharks or leg breakers, and no one wants that. >> we do know, stephanie, the mortgage space is often criticized as being too tight. there are publicly traded payday lenders out there.
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do you just not go near this business out there? >> as an investor, no, i wouldn't. the risk is too great. we don't have the visibility and the customer they're dealing with, they don't have the whe wherewith wherewithal. in the grand scheme, financials are very cheap. there are other ways to play it. >> john berlau, chris hogan, thank you both for joining us. >> thank you. >> coming up, there's a key number to watch in dividend paying stocks. we'll tell you what it is and potential warning signs in just a bit. but first walmart giving investment reports on their different stores including sam's club. we'll head to arkansas for the highlights after this. you're watching cnbc, first in business worldwide.
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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. walmart is holding a media day with its executives. that's where courtney reagan has ben. i guess kinds of stores. she joins us from a walmart neighborhood market in arkansas. hi, court. >> hi, there. good afternoon, kelly. this is shareholders week in arkansas, ahead of a big meeting that happens tomorrow. walmart expectations have meetings with its different stores throughout the region and the focus throughout the day has been ways that walmart has tried to save money in its operations in order to offer the lowest price. you're going to have to use your imagination on this one because
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no photos were allowed. they're testing drones. so the drones fly through the aisles taking 30 photos per the second, delivering that real time data back to the employees about where the inventory is and whether or not it's out of place. it's saving time and money. what a drone can do in less than day would take a human with a hand scanner about a month to complete. but walmart says it's about six months away from deciding whether this will work out. they have filed with u.s. regulators in order to test drones for delivery, pickup, and other uses. when it comes to the stores, walmart's u.s. ceo greg foran says there's still work to be done. >> i think that will be a three-year task for us before i
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would stand here and say i think we run some really good stores. >> foran is running everything. examples is getting product directly from the truck onto the shelf and opposed to also storing it in the back room. he said some of these changes have helped improve time by 50% to 60%. it's all about getting things to be much more simple and repeatable and understanding to the associates on the floor working the stores. kelly? >> courtney, you do remind me when the patent was filed last year, there was talk about them deliver groceries in the parking lot. did any of that come up or was that some somethithing of a red? >> there that's something they'd like but that would mean drones would be flying outside.
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they're only usinging them inside and it's just the one, using the information to decide if they want to roll it out. step two is the delivery and pickup options. >> clearly they've spent so much money on online, digital and so many other things. they're doing the right things but i'm curious. are you surprised about what the c o'said about it taking three years before the stores are well run? >> yes and no. i think greg foran, he's very fair and very honest about where things are. he said, look, it's not rocket science that stores should be clean and items should be customers should find them. so i think he has a very honest perception of what's going on here. he's only been in this position for about two years or so himself, so he kind of came in, is looking at everything from top to bottom, bottom to top,
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and making sure everything is simple. i wasn't entirely surprised about his timeline because of the depth he appears to be going into at every level of the home business. >> need to pay a visit to the hometown one. thanks. we'll tell you what could be getting some of those names in trouble next.
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welcome back. we have a news alert on apple. josh lipton has more, josh? >> kelly, an apple outage to report. apple is reporting services outages for many of its services right now. that looks, kelly, to include
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app store, itunes, apple tv and some other cloud services currently out, unavailable to users. a call into apple to try to get more details about why that's happening, how long it could last for and bring you the headlines as they come. back to you, kelly. >> thank you. dividend paying stocks are a popular play but how sustainable and safe are they? a look how many companies have been pushing their dividend limits, eric. >> this is the entire s&p 500. if you go back ten years ago and look how many companies paid half earnings in dividends and more than 80% in the dividends and more than 100%. look at the chart. we're at about 19% right now. 19% of companies give you more in dividends than they make. that's double what it was a decade ago. as we look at some of the companies that we picked out from the s&p 500, you see interesting household names there. obviously chevron energy is hit
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hard. merck and phaser. look at examples, pfizer had to cut the dividend in half. p and g the lowest it's been in years. you go through the examples one by one. chevron, at what point are you a past investor? you see the column on the newspaper but not thinking about what is it going to cost you not long run. >> and is it sustainable stuff. >> that's the question, is it sustainable. it really is with the exception of oil companies but chevron and exxon -- >> you need something. your earning haves to go up or dividends have to go down. >> i was just saying none of these companies have outstanding growth. i'll take the dividend. >> they will say they are paying it out of cash flow whether net
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income or not is the question. pfizer, a big reason they wanted to do inversion and have access to the overseas cash because at some point it has to bridge the gap. >> yeah. >> without that overseas catch it's relying on debt. >> i wonder if that's why we see a tech name like microsoft. they had a lot of cash overseas. >> historically, the ratios weren't that high. they started to chalk them up more recently. we know they got cash. we accumulated the cash because they weren't paying out so much. you can accumulate cash and pay it off. where is the trajectory. not an issue today but a long-term issue that you got to watch out for in the next three to five years, not necessarily a 2016 issue but as interest rates start to go up, what does that mean for the value dividend, too. >> the number you're looking for is not a static consumption. thank you. earnings from two key suppliers were released and
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find out how american express cards and services with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. welcome back. here is a check on earnings movers. ambarella is up 8%. we looked at the name kind of
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flat. we'll get to that in a moment. broadcom up 8%. interesting. >> it is kind of interesting. i think, again, expectations were so low maybe it's sure covering but actually results were good and if you think they can deliver in a go protransition environment, imagine when the hero five comes out. >> i was going to say, i wonder if we should check shares of go pro. >> it's 11 as it looks for a pop there. do you think that these two suppliers are talking about the health of go properspectively? >> for broadcom, no. not just apple and iphone and samsung. they got industrial and a lot of things and i really do believe the margins were better because of cost cuts. they are buying time as i said before until you get the next cycle. so that story i think is really
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specific. >> the chip group is one of the strongest lately. it's looking over bought and they have been lagging behind. >> true. those are earnings mover. turning everybody's attention to the morning, quite clearly the jobs number is the biggie. if it comes in between 150 and 200,000, you can read whatever you want and it will take a big miss or huge beat to change the narrative. >> i think any number that has, you know, a positive above zero number, you can read anything and because the fed is seeing as basically operating on -- with a certain bias with trying to find reasons to move. so if you see -- unless you see a real decline in wage growth with a weak number, i don't know that it's really going to change the conversation much. it's interesting, the asset markets have been in complete holding patterns, whether treasury, dollar or stock waiting for clarity. >> in the last six months if you
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average it together each month running 220,000 jobs per month, right? that's a little worse than last year but still pretty good. so i think it's kind of noise, if you will, to both of your point. i think the wage number to me is the most important number if we see that tick higher, i think that absolutely gives the fed the go to go. >> the 100ish-type number isn't going to matter. a lot of people say because you had that job growth, you maybe find a down shift happening anyway. >> right. we're always told by some of the fed's calculations 75,000 jobs per month. >> so -- >> i'm reading reporting saying the construction data came out. the report is so all over the place, you got to ignore it. there has to be room to improve. economy isn't changing that much. >> it's not changing much but enormous to look for wiggles. it's not that easy.
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>> i sympathize but nevertheless would be great if revisions didn't change the narrative every time they came out. we shall hold our breath. for now, stephanie link and "fast money" does begin right now. "fast money" starts right now live from the nasdaq market overlooking new york city's times square. tonight on "fast" a top technician says stocks are set to surge, but one thing needs to happen first, he's here to tell us plus elon musk revealed who tesla's biggest competition is and not what you think. you'll hear what he said. later, the donald touching down in california. why are tech ceos giving him the cold shoulder? first, the moment of truth for the markets. the jobs report is tomorrow and so we thought we would play a little trade your own adventure. this is a crucial jobs report. what do you buy if you think

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