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tv   Closing Bell  CNBC  August 1, 2016 3:00pm-5:01pm EDT

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now up 1.6% in the past month up to about 10% and also take a look at the highest level in six months. and in the past one month, it is up 12%. >> and amazon likely end the day with a higher market cap than exxon. >> could be. thank you for watching "power lunch." >> "closing bell" starts now. hi and welcome to "the closing bell" on a monday. i'm kely evans at the new york stock exchange. >> feels like a friday almost. i'm bill griffeth. oil, the story, hit hard today. with names like exxon and chevron dragging the dow lower as a result. we'll look at what happens if the commodity continues to decline. >> and jpmorgan ceo jamie dimon telling cnbc he thinks the next president could help the u.s. economy grow at a rate of 4%. more on what he said coming up.
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amc entertainment says a lack of summer block bust earls hurt the bottom line in the latest quarter. we'll talk to adam aron in a first interview about that and his company's merger plans. they have a lot of mergers. breath taking is the word he uses to describe this. tesla reaching that deal to buy solar city. we'll look at what it means for shareholders. let's start, though, with oil. big mover today going lower. yak i can deangelis tracking the action for us at the nymex. >> good afternoon to you, bill. we settled higher than $40. but we did get down to $39.82 and shows the momentum is there. 40 is a key psychological and technical support of oil prices. let's see why we rose and why we're falling particularly so early in the season. the demand for summer driving gave us an uptick.
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we got up to the $50 range, the dollar supportive. everything seemed fine. on the downside, why we fell is because we had a crude inventory glut that created a gasoline glut and profitable to create more product and that's what the refiners did. of course, concerns about china and europe and the demand over there and concerns to see the summer driving now go down creates a situation where we have got a simple supply/demand story. the decline as i mentioned is happening earlier this year, this seems to be creating a little bit of concern in the marketplace, a little bit of panic here. that's why the momentum is so strong. technicals indicate that once we break the 40 level and hold we could get down to $36 a bashl. that's the next support. but remember, it's not always a straight line. there's two key takeways here. gas prices are very low for this time of year. $2.13 is national average according to aaa and some are saying, bill, $2 by labor day.
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$1.50 by christmas. that would be substantial. flip side, you're talking about this all day, the fact that when we see energy prices go down, it hurts big oil. when big oil suffers, that trickles down into the broader stock market. back to you. >> road trips all the rage this summer. >> oh yeah. loving the low -- my guys, i was telling you, paying $1.87 right now and i expect it to go lower. i know he's watching. >> will it, jackie? there was a spread still between the gasoline and the oil price and is gasoline moving lower here? >> answer carefully. >> probably will. if crude cracks the 40 mark and holds, remember last year we saw all the way from 60 down to under 40 and then in february we were down to $26 a barrel. if you get a monumental move like that and don't see a demand shift the gas prices suffer and
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$1.50 is a gift by kris ms. >> that would be fascinating in terms of finally help more than it so far hurt some sectors of the economy. all right. thank you. >> sure. >> thank you very much. now, our wilfred frost sat down with jamie dimon earlier. >> wobbles in prices to me are not a reason that we would do something different. obviously, customers in the oil business, it affects them and probably like to see more stable oil price. i wouldn't overreact. i'm not even sure the gdp data is accurate anymore. what we see is more household formation, more people buying homes and jobs. those are all good things and keeping the economy growing. i wish it was growing faster. i'm not a buyer of 10-year bonds and i would be worried about drastic action in the 10-year bond. the more important thing and the fed talks about it is are we have proper growth in the united
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states to start to normalize interest rates and think of the short end. 25 basis points doesn't matter much and talk to normalize, is a good thing. the next president focuses on the right things, i think we go to 4%. a lot of ways education, that we can make the country boom and focus on that and not just pointing fingers and being mad all the time. america should look at what we do well. our future is unbelievable. but it's not a divine right. we don't have a divine right to success. i agree with a lot of politicians saying we have serious issues. we do, immigration, infrastructure, income inequality. let's get together, collaborate and fix the problem so that beautiful future we have is the one we accomplish. >> he gave us a lot to think about there. >> yes. >> and i have to say, though, i have the greatest respect for jamie dimon but even if the gdp numbers aren't going your way to
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say you don't believe they're that accurate anymore. >> i love that he raised that. i think that goldman, for example, digging through and productivity, why is it that the jobs numbers is strong and gdp is weak? we're only going to know in the fullness of time. he did raise the point. >> i hear you nodding, rick santelli. i know what you're doing over there. let's get to the exchange today. david wadell, peter kosta and there's rick santelli in chicago lar chicagoland. peter, this narrow range for the market continues. narrowest since 1970 somebody pointed out the other day. >> i think that 2160 or 2159 on the s&p is like a baseline again and i think we have bounced off that about 6 or 7 times in the last 2 weeks and i think that's going to continue. i mean, it just -- there's not really anything that's moving the needle to make people jump in and with both feet.
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and there's not anything out there that's telling you i got to get out of the market and goldman's commentary this morning might leave you, you know, to start thinking about reassessing where your money is. but i mean, you know, overall, there's not a reason to do one thing or the other unfortunately. >> haven't heard goldman downgraded global stocks this morning. >> for three months or something? that might have been a separate call that looks more short term and echos by the way jeff gundlock saying get out of everything as the s&p tests new highs. what are you advising? >> well, i think the goldman call is kind of weak talking about three months and downgraded to neutral and basically they said was we're in the summer doldrums to echo pete're's point. gundlock is a bond guy and always sort of praying for a catastrophe. >> wait a minute. just, david, the duration in the flagship bond fund is shortest of -- it's 2 1/2 or something and you have others in the space
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who are at 6 1/2 and put his money where his mouth is and thinking that bonds are such a great buy at these prices either. >> right. so the longer duration people won so far this year, right? >> right. >> he got his duration short and that me that's somewhat appropriate but that assumes and i know you have rick on here, too, interest rates are going somewhere. i don't think interest rates are going anywhere because i think the fed is in the dollar business, not the interest rate business and they need to keep the dollar low relative to other currencies every time it spikes it's some sort of global panic. and so, because interest rates are going to be anchored, the valuations across the market go to levels that nobody really expected before. i mean, everybody's getting nosebleeds around utilities and telecoms and can now spread to the entire market and the economy is wisha washy and earnings and plenty of room to
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run on multiples and doesn't make me comfortable but a mathematical fact. >> rick, what is your thought of what he was saying there about interest rates anchored? we have talked about the past the fed's thumb on the scale and the impact, right? >> yeah, no. i think david nailed it. they're in the dollar business. spot on. and, you know, we could tie it with jamie dimon and not buy bonds. i would be interested if he's interested in selling bonds. really, that's the burden of proof right now. i think we could see these yields quite a while. i don't see mario draghi, any of these, carney, giving up. they're not going to give up and i don't see high-quality sovereign coming out of the woodwork anymore. it's going into institutions. there's a huge need for it. and it's the currency of margins. as for gdp not being important, bill, you nailed it. if it was 6%, it's darn important and i guess, you know,
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jpmorgan chase second quarter net income $6.2 billion and jamie doesn't need growth. he is a great american. he is a great banker. i get it. but status quo's doing okay for jamie. and i think there's a little political whiff in there because only one of the candidates is pushing status quo. >> rick, is it possible that at some point to look back and say, you know, the gdp was better than reported which would be consistent with jpmorgan doing okay in this environment? >> you know, of course, i expect to see revisions but it's not revised. we currently have a two quarter average 1%. if everything goes great maybe closer to 2%. we've been there, done that! all the things jamie talked about, everybody understands that. so why's the average guy having a hard time in that's what matters, plus the average guy only has three or four banks to choose from. >> before we go, peter, you're still in this market, aren't you? >> yes, i am. >> buying anything?
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>> no. i mean, you know, i have a little invested, little heavily invested in financials and i think play out nicely but again you have to look at the way my investment time horizon is six months to a year to three years so i have time to make a good decision. >> is that the old definition of a long-term definition is a short-term busted trade? >> i like to think i'm a medium-term investor. >> all right. >> david, very quickly, before we go, what are you buying? i assume you're not throwing darts here. >> no. of had their day.sives havin i go back to the market's rising and beta isn't with it at all. so small caps seem to have a bid. emerging markets, internationals. the things you would expect to rise on a rising market that failed to over two years. >> all right. thank you, guys. pr david, peter, rick there with aboutthe
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session. the downward move in the price of oil putting pressure on the markets. the dow down 30. s&p down about 3. the nasdaq still up 21. elon musk gets what he wants as tesla buys solarcity for $2.6 million. we have delal tails on the controversial buyout and the impact on tesla's stock coming up. also ahead, don't miss our special report on why sequels are no longer the sure bet for hollywood they used to and the ceo of amc weighs in. you're watching cnbc. [chains dragging]
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welcome back. take a look at the bio tech stocks today. the nasdaq's ibb up 1.5% and climbing for the fourth consecutive day and the eighth positive session over the past nine. it is still down this year and there's been a stealth rally in the challenged space, bill. check out the other movers. biogen and ionis pharmaceutical climbing. showing that the drug to treat a deadly muscle disorder in infants, met the goal and
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stopped the trial and gave all the participants the drug. they plan to seek approval and commercialize it globally and paying a $75 million licensing fee to that end. ionis is eligible for tiered royalties on potential sales of that drug. elsewhere, diamond offshore lower despite a beat. the drilling contractor says an impairment charge caused expenses to double to just over $1 billion in the second quarter and analysts say that the company faces an oversupply of offshore rigs in a falling oil price environment. sound familiar? >> oh yeah. elon musk's tesla motors buying solardy s solarcity. phil lebeau looking at the controversial deal. phil? >> a reason we're seeing shares of solarcity trade lower is some people originally with the bid
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made in june to come in between 26.50 and 28.50. looking at the deals of all-stock deal that they have now reached a preliminary agreement on, it works out to about $25.37 per solarcity share. and again, the original estimate was $26.50 to $28.50. the financials have people arguing whether it makes sense but in terms of strategy, elon musk says, look, look at this over the long term making a ton of sense in his opinion. it is touting one stop clean energy. essentially you go into a tesla dealership. you get the electric car. sign up the power wall unit and then have the solar panels on top of your house. he believes that is going to be a very successful business model over three to five years. in terms of what we can expect from solar energy and people adding solar energy to their homes and in society, he thinks we are just on the cusp of some
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very optimistic happenings. >> i think there's a prosperous future here for both utilities and rooftop energy providers. and everyone wins because this is a growing pie. >> he went on to say a rapidly growing pie. over the last year, you notice over six months in tandem trading. solarcity with the a 45-day go shop option and can solicit other bids and they can go with that one. we may not see a higher bid and in that case, many believe that we'll see this deal close in the fourth quarter, at least that's what tesla believes. they said that on the conference call today and no short and of people chiming in saying financially this makes no sense at all. but elon musk has heard this for sometime and he still says that this is the strategy that works,
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certainly with his master plan. >> exactly. phil, thank you. >> thank you. let's get more analysis of two top analysts. >> here is james albertine and next to him is colin rush. colin, what do you think? i mean, given the timing of the deal, it just feels like tesla bailing out solarcity. does it make sense to you? >> i agree with phil. we don't like this deal in terms of return on capital for tesla shareholders. we think they're running into a challenge from financing standpoint and they have an issue with the sales program seeing what they did with guidance today and for us we are not a fan of this deal. we are very bullish on solar as well as the opportunity out here and not convinced this is the best use of cash for tesla. >> james? >> i agree, actually. at the end of the day, they have a tremendous amount to overcome with respect to the model 3 launch. the production line as we understand it hasn't broke
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ground yet. to take this on begs questions around capital infusion and needs and where they get that capital. >> would you expect anything different from elon musk, though? you're an automotive analyst. does this complicate your ability to assign a valuation for them? >> it does for tesla for a few years. i think at the end of the day, you know, there is quite a bit of disruption that needs to happen in the energy market. the utility, power generation and power distribution grid needs to be upgraded. tesla stands as good of chance as anybody to disrupt that. from our perspective, if the automotive model works and the model 3, it renders the conversation perhaps moot. >> what's wrong with solarcity? >> i don't think there's anything wrong with it but the operational efficiency and the return on capital opportunity for the platform. when you look at the utility industry, we are not seeing the
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growth that elon talked about. low single digit growth for sales and regulated return on capital. looking at 8.5% return for utilities and not what they're looking for an equity position. >> do you buy the strategy here? >> i don't. i think they should be separate companies. tesla's bringing more to the table. we think they're bringing a lot of expertise of power management and the key of energy storage in the grid in an i feeffective wa. >> are you using, can you use solarcity equipment with a tesla? >> yeah, well, i think an interesting point not discussed enough is over the last few years people asked what happens at end of eight years when the batteries come off warranty? that is a lot of scrappage.
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the energy demands are different for storage or a solarcity play and range day in day out consumer automotive plan. >> so let me make sure i understand you. batteries go off warranty eight years after you buy the car and then you are able to or incentivized to do what exactly? >> if you're a tesla car owner, you probably get a new battery. you have a supply of batteries still useful for energy storage and reduced the need in other words. >> we have to go but a little -- every time i talk to anybody about elon musk, a little voice says maybe we are underestimating this guy. you know? he's clearly a visionary of some type. right? great entrepreneur. are we getting him wrong in this case? >> i think from a strategic standpoint in terms of consumer
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experience he is probably right. i'm talking about the financial returns and discipline that the company demonstrating it is not taking that in to consideration. >> what do you think is the difference between a tesla only return on capital for the next whatever period 0 of time versus combined return on capital? >> the cash generation off the platform is 20% to 25% plus for tesla versus lucky for high single digits combined. >> thank you. >> thank you. we're heading to the close. 37 minutes left in the trading session today. it seems like every single day the trading range is the same. today the dow is 110. >> echoing the narrowness. >> staying right there. but up next, the ceo of amc entertainment with the take on the summer block office so far and the sweetened bid. why verizon is buying a
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company of fleetmatics. that's coming up on "closing bell."
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market's a bit lower. look at etsy up after citi initiated coverage of the marketplace stock with a buy rating and a $14 price target. it's at $11.80 right now.
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the analyst at city si said it' far too conservative and he sees good prospects for margin expansion down the road. >> i feel like psychologically the better it does and could unlock that pipeline. many watching it as an example of one that struggled. sequels now a thing of the past itself? julia boorstin is here to take a closer look from los angeles. hi, yulia. >> reporter: hey, kelly. sequels are no longer a sure thing. the box office is down 26% from at the same point last year. now, some sequels like this weekend's "jason bourn" deliver and the $60 million opening weekend here in the u.s. is about $10 million less than the 2007 bourn opening weekend. and disney's sequels are the two biggest films of the year. but last quarter's sequels were
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particularly rough. fbr analyst writing that the quarter will be remembered as a time when sequels especially those not featuring superheroes came up short. paramount's ninja turtles was such a disappointment that viacom said it would be down and others are "neighbors 2" and "alice through the looking glass" and fox's "ice age collision close" with the worst opening of the five films in that franchise. now, just this morning theater owner amc entertainment reported a 11% decline in u.s. per screen revenue blaming a lackluster film slate. but amc was also bullish that things will turn around starting this weekend with warner brothers "suicide squad." so there's still hope. >> hey, i went and saw the
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"bourn" movie. hope springs eternal. >> it must have been doing well if kelly evans went to see a movie. >> thank you, julia. >> we are joined by adam aron. what do you make of the lack of people going to movies? is it the quality of the movies necessarily? or, is it that people have too many choices now? they don't have to be going to the movie to be entertained over the weekend? >> it was only eight months ago that "star wars: the force awakens" grossed a billion dollars and our first quarter revenues were through the roof. really, hollywood hit a slump in april, may and june. the industry attendance off 12% year over year. but that is an anomaly if you look before the first quarter or after. just in the month of july, for example, in the first four weeks of july, attendance at u.s.
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movie theaters up 7% year to year. i think we got a few clunkers in a row but i think the prospects for hollywood are quite bright and looking at 2017 and supposed to be a record-setting industry wide film slate. >> yeah. the february release of this movie they just released the trailer for saw on friday this great wall movie with matt damon going to be domestically released in february and brings up an interesting point of the box office shifting overseas. is that partly a factor here? >> no. it is a big world and movies can still perform well in the united states regardless of what's going on in china or australia or europe. but since we're mentioning europe, just a few weeks ago we bought the largest movie theater chain in europe. we are very bullish about people going to theaters to watch movies in the united states and
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throughout the world. >> clearly, what you -- that and the deal you're working on right now, you're trying to -- it seems you're trying to scale up maybe margins aren't what they should be. business isn't what it should be and trying to increase the scale to make more money that way. is that the idea? >> well, you're half right. we're certainly trying to increase our scale. but not because there's anything wrong with our margins. it's more because if you look at the amc i joined in january, it was the second largest movie theater chain in the united states. just when our deal was completed we'll be the largest movie theater chain in the world. that's what companies should aspire to. if we get carmike in addition, that makes us number one player in the united states. the number one player in europe and number one player in the world. what this is all about, number one, is growth. delivering increased earnings. also we think amc has a little special secret sauce here. we were the ones who pioneered
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movie theater renovations featuring of recliner seats and full alcoholic bars in the lobbies and we think to bring the initiatives to europe and elsewhere, we're going to see significant increases in earnings because people like spectacular movie going experiences and that's what amc theaters offer. >> what they like is feeling like they're at home and goes back to my first question. you know, this is what you're competing with these days. home entertainment systems that people would rather go to than go out to the theater. isn't that what you're competing with right now? >> well, in a sense, yes. but for those who have a long term view, radio putting movies out of business. television to put movies out of business. vcrs to put theaters out of business. netflix to put theaters out of business. if you look at the last four years, three of them have had record setting industry box office grosses at the domestic
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movie theaters. i think the solution to competition from other ways to watch film and entertainment with competition always being good, always keeping people on their toes is to make the movie going experience at amc theaters nothing short of spectacular. more doll by cinema screens. the best in sight and sound, comfortable seats, better food. we'll get plenty of people coming out to theaters for years and decades to come. >> adam, you're one of the first to swoop in after britain voted to leave the eu and the currency fell. to grab odion here and you mentioned bonanza of others doing the same and softbank's bid for the chip company and for arm holdings. describe now especially facing the bank of england maybe cutting rates lower this week, you know, how the -- you guys are looking at the value of that deal, of the currency and if --
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is that window of opportunity already closed? >> no, kelly, look. you are right. amc was the first american company to announce a billion-dollar acquisition of a uk-based company after the brexit vote. the fact that the british pound slid to a 30-year low, if ever there was a time to buy in europe, it's right now. while amc was the first american company to go in, i'm sure we won't be the last. >> good to see you, adam. thanks. >> my pleasure. >> adam aron, ceo of amc entertainment. time for a news update. sue? >> i liked "ice age." putting two cents in there. here's what's happening at this hour. florida's governor rick scott saying ten more people have likely acquired zika through bites bringing the total to 14. he held roundtable talks with health officials in st. petersburg and asking for a cdc emergency team to help combat
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the virus. the cdc itself is warning pregnant women to avoid wynwood in miami and urging expectant mothers after june 15th frequenting the neighborhood to get tested for the virus and men and women ate eight weeks before trying to conceive a child. the chairman of the u.s. joint chiefs of staff visiting turkey's parliament and inspecting the damage caused by the attempted coup and joined by the turkish counter part and later held talks with the turkish prime minister. eating more plant-based protein rather than animal based could help you live a longer life. researchers from massachusetts general hospital in harvard university tracking the diets of more than 130,000 adults for 30 years. so it's a big study and a long-term study. that's the news update. back to you. >> as justification for crunchy
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peanut butter? >> sure i like that. but soy instead of beef -- >> no, no. >> add a little edamame to the salad. >> a little peanut butt tore the burger and that's pretty good. >> that's true. >> yep. been there. >> are you kidding me? >> no. it's great. >> really? >> pickle sandwiches i like but peanut butter on burger? >> what? >> you have to try that. love that. >> peanut butter on anything. >> good point. and bacon, too. thank you so much, sue. >> you are welcome, bill. >> i'm starved suddenly. 24 minutes left in the trading session. >> on a pickle sandwich? >> wonderful. down 47 on the dow right now. a leading trader will tell us what he's watching going into the close. uber hits the brakes on a fierce race for market share in china. what it says about other u.s. businesses trying to do business there coming up.
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welcome back. less than half an hour. 20 minutes in the session. on the floor with gordon. what's jumping out to you? crude oil today the way it moved lower? >> interesting session. mondays early in a month
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generally rather quiet. seeing decent volume here today. we're seeing that the imbalances indicate there's some good liquidity on the bell. i think it's continuing to be a good session and oil is a factor and broke through 40. we're still in earnings season. we came out pretty strong. since then, steady if not remarkable. and, you know, we saw the language at the upper band. >> what about the macro stuff this week? with the jobs report, the manufacturing gauges? >> friday's jobs report is huge and then, of course, you have a bank of england probably lower rates for the first time since 2009 off of brexit. obviously, those are just things to be looking at and then, of course, domestically, you know, the elections are just taking over everywhere you turn. internationally looking at the olympics starting on friday. we'll see how those turn out. >> see if rio is ready. >> for bill.
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swimming over there or something. >> i'm not sure. we'll have to double check that with the source. gordon, thank you so much. we'll let you get back to it. mr. bill? >> we discussed rio earlier. that's not happening. that's for sure. 20 minutes left here in the trading session with the dow down 43 points. that verizon buying binge continues but its latest acquisition has some scratching their heads. we'll take a look behind the deal. not a good weekend for gop presidential hopeful donald trump. a new poll has him behind democrat hillary clinton. and he's drawing jeers from all camps for comments of a muslim war hero.
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- a dollar sign looks like an s. when you send financial info through a website, look for a url beginning with "https." the s is the difference between an encrypted site and one that's not. s equals secure. [light instrumental music] here's 30 components of the dow today. led by apple continues its rally here up about 1.6%, just under $106 a share. pfizer reporting this week up there, too. as we move down towards the bottom, though, you can see verizon lagging. also exxon and chevron and caterpillar and with oil prices lower, again today, perhaps that makes sense. >> by the way, i just googled
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peanut butter on hamburgers and up came a recipe on the grill. so i guess it's a thing. who knew? just days after the deal for yahoo, verizon went across the atlantic for an irish company of fleetmatics. for more, we welcome mama morgan brennan on the first day back from the maternity leave and got to work. welcome become. >> thank you. peanut butter on burgers sounds like pregnancy food. just saying. the top u.s. wireless carrier is acquiring fleetmatics $2.4 million in cash. taking a look at sharyls, those are up almost 40% today and provides fleet management services. developing software that shows vehicle locations, fuel usage, mileage, driver hours and right on the heels of verizon's purchase of another fleet management company last friday and both part of a larger,
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longer term strategy for verizon to expand beyond smartphones and a market that's saturated and further into telematics and the internet of things. grew to $205 million and still small compared to over $30 billion in revenue overall for the quarter and one of the fastest growing segments. fleetmatics with more services of small business and enterprise and long haul trucking an this is only the latest in a buying spree that's over the past 18 months and included aol of $4.4 billion and just recently yahoo of $4.8 billion. verizon is busy. the goal here, not only provide the wireless network but the tech and the data to run on said network. guys, back to you. >> yeah. we were talking about it earlier today. content is something that they're going after right now. i mean, as they try to remake the company from a phone company, right? >> exactly.
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more of an and if company, seeing this with verizon and also seeing this happen, this diversification of revenue streams with at&t, as well. not just providing the network but also, all of the software, all of the tech, all of the content to include more and more connected devices on that network. so basically, in a sense kind of a one-stop shop over longer term. >> wow. we'll see. morgan, thank you. welcome back. 13 moneys to go in the session and let's see. dow, you know, it's up there now. >> down 32. >> thank you. s&p down 3. the nasdaq up 21. >> unfortunately, ten new cases of zika in miami, florida, today. there's a travel warning in place. courtney gibson, president of luke capital, says investors should be concerned about that. we'll talk about why coming up next. tonight, on mad money, ceo of ionis pharmaceuticals talks
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all right. about ten minutes left in the trading session here with the
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dow down 46. joining us, courtney gibson. how are you? >> well. how are you? >> good. you're betting on the consumer right now. that's where you see growth? >> absolutely. definitely. >> why? tie consumer is driving this rally and continues to drive us. you know, if you think about oil and where it is today, if you want to play the other side, hey, gas prices are low. more money in people's pockets and ultimately more spending at companies and the consumer can absolutely continue to bring this rally back and bring us home. >> i see you have a couple of examples here. different ways to play it. facebook, starbucks? >> absolutely. for me, long-term names. proctor a& gamble reporting tomorrow. you want to own it. it's a great, fantastic company. i believe it's even up today. facebook, tremendous room still to grow. instagram folks can't live without and at the end of the day thinking about facebook and all the other endeavors they're
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undergoing and the advertisers i think it's a huge opportunity for global advertisers and facebook to monetize. >> i mentioned before the break that the zika issue, that could put a damper in some sectors that you see pertaining to the consumer, though, right? >> yes, definitely. our firm put out a piece a couple of months ago warning municipal issuers about the effects of zika might have and if you think about it, travel, it's real. miami-dade. i'm from miami. lived in miami for a while. it is not just in wynwood. it's a mosquito. they fly. ultimately, this is really going to affect travel and not just travel for pregnant women. it affects men as well. we don't know the ultimate effects long term and people need to think about zika and stocks and in particular travel stocks. >> you also have an interest here and you like u.s. financials. why is that? >> i do. well, i'm a big proponent, i bought jpmorgan when jamie dimon
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bought it and on the show earlier today. and ultimately u.s. financials are a safe bet. getting the growth you want right now or not, it is a long-term player. the system is sound. european banks, we saw what came out overnight. they're still saying things are okay. it is not as catastrophic as folks think and time to put some good names into the portfolio and think about it long term. and close your eyes and move forward. >> does that include the european banks, though? >> you know, i'm personally not invested in some of the european banks but, again, a long-term pl play. it's a matter of finding the footing and understanding the valuations, where they're re-investing and focusing. i see investment banking coming back. ipos and m & a deals today. it's a good opportunity for the banks to come back. >> good to see you. >> god to see you. thank you so much. appreciate it so much. we'll take a break with the dow down still 46.
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i think that's still working. that board over there. we have the closing countdown in a moment. >> saw it move. after the bell, there's a movement to buy and sell corporate data. others say it would level the playing field. we'll discuss both sides of the debate coming up. you are watching cnbc.
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coming up on the three-minute mark heading to the
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close of trade. really, looking for a movement in the markets, you haued to look to oil today which for a time fell below $40 a barrel. first time since march. we finished -- our trading right now at $40.02. that didn't -- the stock market's not core lating perfectly with oil these days but it did put something of a drag on the market. the dow as you will see around midday fell to the lows. but again, it wasn't a very broadly traded day. the trading range for the dow top to bottom again about 110 points as it has been lately. the 10-year note continues to hover around that 1.5% level. and indeed, right now, bob pisani, at 1.5%. stuck there. >> so, once again, we are sort of back to february and march on oil. not in the oil prices but traders are once again sorting through all these mid and small sized energy companies, particularly the ek plor ration
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and production companies to see which companies are viable, below $40 oil and which companies aren't. the reason this is important is we thought it would go away now. oil at $50. people had oil towards $55 at the end of the year and assumptions based on this idea. the models are now wrong and keeping up for more than a few weeks, the energy numbers come down. we talked about this a lot last week. while the big energy names down today, smaller ones that were down more because the question is their economic viability. that's what we're trying to figure out. >> has an impact on loan portfolios. >> and why bank stocks, oil below $40, bank stocks like the kbe moved to the downside. so, we're back to trying to figure whole thing out. not clear. we'll talk more about it tomorrow. on the upside, apple, since their earnings report that was tuesday at the close, apple $96
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at the close on tuesday. apple's almost $106. moved up almost $10 just in the last four trading sessions so i'm not suggesting it's -- apple's clearly bucking the trend in a few days and not suggesting new highs and numbers have been fabulous and the volume is good in it. >> earnings in earnest tomorrow morning. >> we get more of the energy companies and eog, for example, later this week. one of the big production companies. we'll see a little bit from them about when's going on. i can't keep dwelling on it but everything else was falling in place but now with energy down, it's not helping the earnings scenario. 's that what we care about. >> still looking for what the next catalyst is going to be to move us out of this very narrow trading range. >> we need some -- gdp and a one in front of it is not a big help overall and sort of stuck and this is what gundlock talking about.
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calling out the low earnings picture today of sell everything scenario. >> thank you, bob. idaho based ida corp. with the 100th anniversary here at the new york stock exchange. and at the nasdaq, it is olain farm with the dow down 25. time for the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kelly. thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans. the dow going out down today. the nasdaq, though, positive for much of the session and up 22 points at the close nearly half a percent gain. broadly s&p 500 down nearly 53 closing at 2170. some of the worst performers on the dow inl colluding the big energy names. oil below $40 a barrel today after initially holding in positive territory this morning. that put some pressure on that market. coming up, theranos, the
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billionaire of forbes -- from the "forbes" list of zero. the founder taking the stage at a clinical con fence in philadelphia and heading there live and get her remarks starting later in this show and really interested in what she has to say today. joining the panel, senior markets commentator mike santoli is here and elon row. and for more, tim seymour up from that nasdaq. mike, but what about this market? >> you know, the market's been giving a bunch of excuses to sell off in a dramatic way and i think oil below $40 today around midday gave it another one of those excuses but it kind of refused to stay down there. i don't think this means that this is a bullet-proof market and it does mean that essentially, you know, we had the gdp number on friday and could have been an excuse and not taking the bait to sell off more deeply. meanwhile, investors are
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impatient and antsy and maybe working off the bullishness of a few weeks ago. >> it's interesting to watch that 10-year interest rate about 1.5% and under that. a couple of interesting things today. jamie dimon he said he wouldn't be a buyer of 10-year bonds. gundlock with the comments and said sell everything. and then bill dudley, new york fed president, said this morning that it was premature to rule out more tightening. i mention those, of course, because they would seem to suggest rates higher. even though they're stubbornly parked at those levels. >> i took away a different message of dudley's speech and lost in the mix because he delivered it in indonesia overnight and no one paying attention and he tried to walk that balance between saying, okay, no rate hike or one through 2017, maybe too comply sent and didn't sound like someone ready to hike in september. a lot of uncertainty there and i feel like, you know, i feel like
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the fed was ready to move this summer. had it not been for the weak payroll support and then brexit. you know, i think the lesson there is that there is a plan in place. there is a hope in place but it doesn't take a lot to derail them and make them hold on to their fire a little bit longer. >> meanwhile, tim, it looks like the bank of england cutting rates again. >> yeah. and i think, look, for the currency, that may be the best thing. settling at around 125 on the pound is something their economy needs. when you look at the data had around the world over the last week, mixed to slightly lower. a pmi last night in china south of 50. but again, really not any different for two years in china. the data of the friday, payroll number in the states takes on -- always seems like a big number and very big relative to where we were. we are getting a statement saying take a step back and be cautious and the fed isn't necessarily talking about a process of rate hikes but a
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normalization and two different things and 25 bips out there and on it is different and as much as gundlock's almost vilifying the fed for even talking about a rate hike here i think they're two different things and actually, therefore, i think september could be alive. >> before we debate this ad nauseam, apple for a second, you know, kind of a stealth rally going on there. traded today and check the close and almost 106 where it closed. what do you think accounts for the recent strength that it's finding? >> well, i mean, look at the allocations and the nasdaq today and big cap tech. the overly, the story we're sick of big cap divs and apple is all that and the expectations going into the numbers were pretty weak. we can start to look at a quarter or two and apple with ammunition and iphone 7 or refresh and so i think people underweight. i'm not reading a lot into this. it's been a nice move. compared to other big cap tech
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probably in line. >> that's true. that's an area that the earnings certainly helped the performance, mike. >> yeah, absolutely. basically, with the fact that the fundamentals in the last report were not getting worse, than was expected i think people can say, okay, now i use this as a baseline and as tim says, another release of iphone 7, all of a sudden you're within the six-month window and see it as a catalyst opposed to an idea of dead money. also, rallying for a little while when the market is doing what it's doing you look for laggards and going on with apple. >> managing to watch the price of crude oil and maybe a reason why the gdp numbers are weak. business investment not coming from min mining but got to help the consumer, right? >> that's the puzzle of gas prices and oil prices in general over the declining segment we have seen is that consumers haven't really, you know, pocketed that money and then spent it at the store and other places. how long will the consumer actually remain as strong as it has been? it's unclear.
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you know, i want to go back to what tim said and potential for rate hike in september. i have to say, you know, the big story we saw out of the feds most recent economic forecast is lowering of expectations of interest rates to go in the future. so on one hand, you know, that's good for the markets showing that the fed has a shallower path of rate hikes and on the flip side, also suggests that maybe policy is tighter now than they actually thought and therefore they would not need to hike as much in order to achieve that normalization process they say is underway. so, you know, maybe the fed essentially is tighter now than we had previously thought and so therefore, you know, doesn't need to move. >> yeah. >> tim? >> i think that's fair and dudley insinuated as much last night, right? actually, you know, policy right now isn't terribly loose and certainly not loose as it has been and i don't know the dollar's impact here and i would guess that if they hadn't gone in december and gotten the
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market response in january that september could be a lot more alive. that's a huge if but the dynamics here are really policy isn't all that different. and i think if you look at the dollar from where we were about that time it is not all that different so i think the fact of the matter is through earnings season, they haven't said they're ready to invest in the businesses. tomorrow also, auto sales sell you about the consumer and one part that the consumer space held up and i don't expect it to be very good tomorrow. >> well, after ford's earnings, people certainly bracing themselves. we mentioned jpmorgan ceo jamie dimon's comments. he sat down with wilfred frost on the trip to california. >> hi, kelly. yes. we spoke to jamie dimon saying he wasn't concerned about oil prices falling below $40 a barrel today. in fact, he was fairly upbeat about the long-term outlook of the u.s. economy. in a message to the presidential candidates, outlined what he
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thought should be top of the next president's agenda to deliver growth. >> what i would worry about more is the next president, whoever it is, focuses on the right things. i think we are going to 4%. okay? and those are why things are proper immigration reform, proper infrastructure spending and road, bridges, tunnels, hospitals, schools, airports, would be great for the united states. you know? we need corporate tax reform. i would also expand things like the earned income tax credit to help the lower pay. >> reporter: despite that positive outlook, he did express some concerns about bond market valuations. >> i'm not a buyer of 10-year bonds. i would be worried about drastic actions in the 10-year bond. the more important thing and the fed talks about it is are we -- we have proper growth in the united states, that will start to normalize interest rates and think of the short -- 25 basis points doesn't matter that much but the fact is talking to
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normalize, it's a good thing. >> reporter: now, away from the u.s., following the recent brexit vote, i asked him whether the possible breakdown of the eurozone was something he considered and he said, it could be one of the outcomes of brexit going on to say it may take more than five years and may very well happen. those his comments on the wider eurozone following brexit. kelly? >> also interesting that he said he wasn't sure that gdp was that accurate anymore and touched off a debate back here. but, you know, his point being that he thinks that growth is actually good, right? just not showing up in the numbers? >> reporter: he was more pleased with the strong numbers on the consumer side on business than, for example, as you're saying, slightly disappointing gdp data last week. listen, at the end of the interview i asked him, you know, aside from the data points that
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we get each week or each quarter, how positive are you on the long-term outlook for the u.s. economy? his answer was positive and though he did say that the u.s. does not have a divine right to strong growth. the right actions need to be taken and that was the clear message to the presidential candidates. >> yeah. what did you make of that? the point that the consumer numbers look pretty good? >> dimon struck a tone consistently over a couple of years now. and wants to come back to a kind of fundamental strength of the economy and coming to jamie, he likes to look at this sort of aggregate window that jpmorgan as a company has on spending, debit card trends and relies on that to say i think things are okay with us and doesn't mean it's to fast growth in all parts of the economy and seems to knit back to that point. >> yeah. i think, though, looking at the broader debate in the fed, right, this is the question they're asking themselves. when's the potential growth of the u.s.?
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has it come down dramatically? are we stuck in a 2% cycle? so -- >> or 1%. >> or 1.5%, right. so even though, you know, you might say, okay, the economy is above potential, but that potential is really low, still doesn't help you out that much. >> tim? >> look. i think that u.s. consumer is one supporting this entire market so corporations aren't, no fixed asset investment. we need fiscal policy. bank of america is an interesting note this morning saying that, you know, the passing of the baton from monetary to fiscal is what we need and meantime i think the consumer did everything they're supposed to do and therefore a resilience of people not expected and talk about weak gas prices not producing. look at the gdp number and the consumption component and that was the part that held that up. >> really pretty strong. >> lying in the mud somewhere. >> yeah. >> before you go, did he say anything about business and maybe why, you know, there isn't as much strength on the business
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side as the consumer side these days? >> reporter: well, i don't think he dives specifically into that but the overall term was upbeat. we did also actually at the end of the interview get human moments from him deexcite the trials and tribulations faced in his own life over recent years of losing his parents and tackling cancer himself and he said he would miss the job and the comradery of working together and the teamwork aspect and the challenge so he certainly seemed committed to leading jpmorgan quite sometime still. >> it was a great discussion. thank you for bringing it to us and joining us at this hour. mr. seymour, a kernel of wisdom before you go? >> i think let's talk about the end of monetary and we could have sold off more this week and look at emerging markets and despite selloff of commodities are holding up. the good news and bad news and what everyone is saying in the last couple of days, equities
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gotten all they can from monetary policy. i don't think that has to prelupr preclude a major selloff. >> thank you for joining us. next hour tim and crew talking about how to beat the market with paul hickey looking at the three best performing stocks in august. that's tonight at 5:00. uber calling it quits on china. merging with rifle didi for $35 billion. up next, what it means for uber's future and hopes of other american companies trying to crack the chinese market. also just minutes away from theranos' ceo elizabeth holmes trying to say the technology works. we'll bring you her comments later on. before taking his team to state for the first time... gilman: go get it, marcus. go get it. gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages.
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you're here to b enis really built into theat foundation of the company. whole foods market is engaged with pg&e on many levels, to really reduce energy and reduce our environmental footprint. for a customer like whole foods,
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saving energy means helping our environment, and we can be a part of that. helping customers save energy is a very important part of what pg&e does. we can pass those savings on to the environment, the business, and the community. pg&e really is an expert in saving energy, and that partnership is extremely exciting. together, we're building a better california. welcome back. as the saying goes, if you can't beat them, join them. that's what uber is doing with the arch rival didi. susan li has more on the huge deal. >> yeah. it was an epic battle as didi put it and uber was a worthy competitor and in the end in the world's largest ride sharing market, it was pretty much
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winner take all, especially in light of the rule changes just last week in china to legalize ride hailing and companies could not subsidize each and every ride which gives the advantage to the bigger player and didi is bigger in china and uber saying that chi is na is only possible with profitability. both are not profitable in china spending a billion dollars for market share in the subsidies to the rides and drivers according to some of the consulting firms so in this deal, uber china sells to didi making uber the bigger shareholder in didi and a board seat, meantime didi with a billion dollars in uber and the founder gets a board seat on uber. and uber really joins a very long, powerful list of investors in didi of apple, and others. the interesting part is that
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didi owns a stake in lyft and now that uber owns a stake in didi, they own a stake in lyft and i don't know how that gets -- is that divested? main takeaway that people are taking away is u.s. based internet companies that can't compete well in china, ebay against a small company in the early 2000s, google up against baidu and probably a reminder to someone like facebook and mark zuckerberg making a lot of trips to china how hard it is to crack that market. >> and why uber needed to raise so much money. a very deep pockets to go up against china and i can't believe they capitulated this quickly. >> maybe in terms of time but not cash burned. who know what is they have buried there? and got value out of it in the form of the stake in the joint company. i do think when's interesting to me, actually, susan, if this
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were here, would there be massive concerns of one company owns this tremendously growing business? and are there pressures in terms of keeping fares low and all the rest of it in china? >> right. i think the problem in china is both of them spending a lot of money. both of them not making money in that market. to subsidize to gain market share and i think it kind of doesn't make sense at the end of the day just spending so much cash, just trying to outduel each other and uber from what i understand makes money in most of the markets they operated in so, you know -- >> this is a market of three companies, maybe a year and a half ago. didi and the other one, uber. it's gone from three to one. again, how many industries can you think of in the u.s. other than local taxi industries and rep lay kates in china. didn't it bring them in house? >> yes. so they actually almost 100% of the taxi hailing services in china. that's how they started, right? that's how they built their base. to 100 million already. just started off with and then
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they started off the private car hailing service after uber entered the market so, you know, some say this is another sign that obviously the chinese government is trying to support their own homegrown talent and use the baidu case and the like. >> it is real interesting to see if any other companies find success where in this case one of the most likely to find it uber has not. thank you. susan li. stocks have staged a pretty big rally over a month, actually. doesn't mean that underperforming makes the stocks cheap. how to avoid value traps in the market. plus hearing from somebody that says allowing companies to sell a sneak peek of corporate data to investors would actually lower costs for average shareholders. he'll make the case later.
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with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. welcome back. cheap stocks are not always a bargain for investors and this year, in fact, could be called the year of the value trap. mike has more. >> yeah, you remember last year dominated by the big growth stocks like fang? everyone said, well, now time to rotate into value and not worked out. buying the cheapest stocks in the year among the most worst strategies. the ten cheapest based on expected earnings in the s&p 500 down an average of 9.5% so far year to date as of friday compared to more than 6% gain in the s&p 500. last week, we saw ford sell off
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on disappointing results and one of the cheapest stocks in there. look at a list of cheap stocks. several of them in the auto, the airline, and other areas are down 10% to 25%. what's going on here? one thing is a reminder of a lesson a lot of people pointed to on wall street for a long time. cyclical stocks, when they look very cheap, the market might be telling you that those earnings are peaking and in fact actually better to buy cyclical stocks appearing to be expensive and when earnings are about to rebound and seems like investors prefer very overpriced or fully priced dividend-paying stable stocks, low volatility type stocks and commanding all the dollars and so far, anyway, kelly, it seems like that value trade maybe when it comes is that much more powerful on the outs for so long and value managers are betting on. >> why do people get so excited?
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barons covers everything. but why did it seem like this was the year that that paid off more handsomely? >> people were looking for some kind of a tectonic shift and value stocks paying less, getting bargains. it sounds contrarian. i think people want it to be true. it almost feels like you're kind of earning it more than if you're just chasing momentum. >> what people miss sometimes is facebook can be a value stock when you appropriately understand the growth opportunity. i mean, all of kind of different ways to look at it, how much can it grow and what is it worth today? >> yeah. i'm curious about the connection to the economic cycle here. to what extent, everyone thought that 2016 was the year of raising rates, the year of the economy sort of outperforming. it is not looking like that's panning out. is this just part of the broader macro economic trend? >> it is part of that trend in
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the sense that investors don't have confidence to get this kind of acceleration from here which would kind of bail out these cyclical companies. the profit cycle is mature and the expansion in terms of time. has been going on for a while now, right? since 2009. people are unwilling to bet it persists that much longer to bail out some of the company that is need it. >> fascinating. check out more of mike's columns. time now for a cnbc news update with sue herrera. hi, sue. >> hi, kelly. the cdc warning pregnant women to avoid neighborhood of wynwood, the part of miami that's stricken withdy ska and urging expectant mothers after june 15th to get tested for the virus and the cdc says men and women who have recently visited that area should wait at least eight weeks before trying to conceive a child. secretary of state john kerry says russia must not conduct offensive operations in syria and keeping the president
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from doing so, as well. he made the comment at a news conference with colombia's xhorn minister minister. a middle of the road in north carolina, a singhole from one side of the road to the other and it's estimated to be between 10 and 15 feet deep. it was created by rushing waters from a nearby flooded creek. and a new study of connecticut children's medical center shows e.r. visits from trampoline indoor park injuries from under 600 in 2010 to nearly 7,000 in 2014. and the young teens and males are most likely to be injured. >> okay. i want you to explain, would you take the kids? >> i have before and it was a m madhouse. i would not take them become. >> sue? >> mine have begged to go. and my husband is a rehab doctor so he sees a lot of injuries and said, no. nobody's going to the indoor
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trampoline place. >> good to know. it looks like fun. >> i think it probably is but you get a lot of kids and people out there and they're doing flips and things like that. >> jumping all over. >> and the release that you have to sign is like five pages long. so that should tell you something. >> can't set foot inside until you sign the paper work. >> thank you so much. >> sure. up next, elizabeth holmes about to present data for the first time on how the blood testing technology works. we'll have the highlights coming up. later, the latest polls in the race for the white house. donald trump's controversial criticism of two gold star parents hurting the ratings? stay tuned. when it comes to healthcare,
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welcome back. a look at how we finished on wall street today. dow down 27 points. exxon, chevron, some of the worst performers as oil cracked below the $40 mark. s&p down and the nasdaq positive up 22 points. bio techs have been doing pretty well lately. about half a percent and there's crude now above the $40 mark and did trade below there today and dragged stocks down. now a market flash with seema mody.
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>> we are keeping close eye on shares of ibm. in talks and a move that could potentially help ibm further strengthen the presence in the retail sector. they specialize in ipad point of sales systems, specifically for retail and grocery stores. we are looking at ibm shares basically unchanged after hours, kelly. back to you. >> thank you, seema. ibm, of course, one of the most inquisitive companies in the last couple of years, mike. >> probably should be and continue to be. honestly. i think that's what you want. they brought back a ton of their own company. you know, past years or so. they probably should be doing a little bit more in terms of funneling it into growth and doesn't mean they're all winners but i think it's what the market probably wants to see. >> yeah. isn't that the problem? first quarter gdp numbers. lack of business investment. companies buying that can their own stocks instead of investing in r&d and new industries and new technologies.
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you know, where are we going to see the growth come from if they're not willing to do that? >> another reason, a lot of talk about how with the reluctance of an ipo a lot of private companies first look to find an acquirer. >> great point. dual track as it's called. shall we move on? we shall. when we come back, we're going to talk more about the upcoming speech from elizabeth holmes. the embattled founder of theranos talking there and giving you the comments when we take a very short break. the s.e.c. requiring publicly held companies to disclose hundreds of data points but just how much do investors care? one professor is suggesting a market for that data to gauge interest to the benefit of both ins fusional and retail investors and joining us next. and billionaire mark cuban endorsing hillary clinton on saturday after ripping, again, on rival donald trump. will clinton's post-convention momentum continue? more poll numbers later.
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welcome back. theranos founder elizabeth holmes has taken the stage in philadelphia. mega tirrell joins us now. meg? >> reporter: kelly, the moment of truth for holmes and theranos and in the largest grand ballroom here at the american association for chemistry conference and prepared five overflow rooms for the number of
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people to listen to to her speak. she's just taken the stage and speaking for 45 minutes and then 45 minutes of q & a and calling it the beginning of the next phase of the company introducing the technologies to the world and working with independent parties to validate and publish our results. now, that's been one of the main criticisms that they have just kept everything cloaked in such secre secrecy. today they'll revealing a new device of the mini lab. we were familiar with machines known as edison. these are things that contest on a few drops of blood what others fromsiemens and others use much more. and similar panels that they do with just a few drops of blood and also saying today that they have developed tests of finger pricks for zika and ebola, both
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of which they have applied for fda approval of and plan to apply for approval of several more tests in the coming years and to work with other independent third parties to try to validate and publish their results. that's the main criticism here, none of the data is published in peer review journals and fascinating to see how the audience of laboratory medicine experts respond to helms today, kelly. >> meg, a question for you, what is her standing in this industry? to what extent is she allowed to be involved with the company and the fed sanctioned her? >> reporter: it's an important question, kelly. so after the desert if i case, a certification of laboratories was revoked due to deficiencies found there, holmes was banned from owning and operating a clinical lab for two years. they did have 60 days to appeal
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that and put in place early july and considering the options. what it sounds like is that they may be going bab to the r&d drawing board here bringing out a new machine, seeking new dfa approvals and unclear exactly what the business model is going to be going forward and the bans had been put in place, they could appeal presumably, kelly. >> maybe that's the thing, meg. there was a sense if she can't own and operate clinical labs, anything they're doing would seem to involve that, right? >> reporter: you would think so. they take in patient tests. right now presenting today are all new things that they say haven't been fda approved, not using on patients currently. it is very interesting to take it forward looking. they were dealing with patient samples for three years and where all of these problems stemmed from and i think questions about what they were doing for three years and what's different now. >> and, meg, anyone else in the
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industry, so they're coming out with some new things they're doing with finger prick testing and of course what elizabeth holmes is driving in, you know, ambition has been. so, if they do that either for the simple potassium and cholesterol or for zika and ebola, importantly, is anyone else in the industry doing finger prick testing at this point? >> reporter: there are companies working on being able to do the finger prick tests. especially in things like zika or ebola. tests that you'd have to do in the field. you know, we have talked with department of defense laboratory and it's exciting about the promise is that they could take the tests that you'd go to the doctor for several tubes worth of blood and do them all with a finger prick's worth of blood and unclear whether they can actually do that even with the new stuff they're presenting today. >> right. there's a lot at stake
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potentially to get it right, of course. and we'll continue the follow it all. meg, please let us know further news as she does the talk. we'll let you go for now at the aacc -- any thoughts before we move on? >> you know, just that perhaps they can do r&d down a different path and license the technology, maybe not running a clinical lab. what i find striking despite really all the damning evidence of the lack of efficacy of the tests is people who were investors on the board, people who are early backers, an early look at the technology haven't repudiated the fundamental idea of the company and might be the fact trying to salvage this and cling to it. >> right. >> it is fascinating 0 of a second act here. >> oh sure. see if they can get it right after all that happened. the s.e.c. requires publicly held companies to disclose information and how much of that is useful to investors?
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university of chicago law professor henderson penning an op-ed in "wall street journal" proposing that corporations release data early to the public for a fee and the s.e.c. able to see which pieces the public is actually interested in. todd henderson joins us now. thanks for your time. welcome. >> thank you. it's great to be here. >> so, do you have sort of a basic problem with the reg fd, the fair disclosure law and the way information evolved to be less in the hands of the public these days? >> regfd was passed to solve a problem, leaking information early to certain investors and a real problem. unfortunately, the s.e.c.'s solution to try to make the race fair disclosing all information at the same time to everybody sort of made things worse. what it did is left people with the view of companies disclosing information that everyone's on a level playing field and we know in today's markets that's not
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true. high-speed traders and hedge funds process trades must faster. the race is not fair. and so what having an early market would do is basically be able to charge those traders to move faster, professional traders, the ones supposed to be processing new corporate information in a different market. than the regular average investor. who should just be buying and holding. >> so, todd, if i understand what you're proposing here to create this market for early access to this information, mostly as an experiment to test exactly what types of corporate information is truly material and therefore what should be required to be disclosed? >> so, it would do a couple things. first i think it would do that. so the s.e.c. just guesses what investors want. they don't know. and so, they guess, you know, they're interested in the pay ratio of ceo pay to the average worker and you can create a
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market. willing to pay for it, that's suggesting they value it. if the market price a company releases the average pay is zero that means that shareholders don't want it. we may want to disclose it for other reasons but that would tell us what shareholders value and by making a professional only period, this early peak period, it would let average investors withdraw their trades, their limit orders of a big index fund or average investors, they would know, get out of the pool. this is the adults only swim time. this is when the pros are battling to process new corporate information and protect average investors and because it's protecting them it would lower the trading costs and basically -- yeah? >> you make the argument, though, this is acknowledgment that the race isn't fair and seems sort of institutionalizing the fact that the race isn't fair giving certain people times to trade and other times to trade and maybe limiting the ability of the retail investor
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to jump in if they see the potential there. >> yeah. so, i'm -- i believe and i think the finance theory taught us and practice and wisdom taught us the average investor watching "squawk box" in the morning and they have no chance of beating the pros. when michigan releasing the consumer surveys early, finance paper i saw said that the price adjustments were made in 15 millisecond. that means the average guy watching before he hits return on e-trade, that price is already changed. so this proposal is a recognition you can't beat the pros. and so, why should we be -- have the investors in the same market? they're fleeced by the pros. letting them battle against themselves, they bear the costs of disclosure. this would protect them. >> i just wonder -- i do just wonder how many of these every day investors trading things like the jobs report opposed to
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hanging on these things for months and years at a time? >> we want -- encouraging long-term investors and not try to trade on corporate information. trading on corporate information is very important to the market and should be the business of the pros and not the average investors. and creating sort of effectively two markets is designed to do that, just that. >> fascinating. todd from the university of chicago, thank you for joining us. >> thank you, kelly, for having me. hillary clinton getting a post-convention bounce in the polls. meanwhile, donald trump taking heat for the relationship of russian president vladimir putin and comments that putin won't go into ukraine. is there trouble ahead for trump? that's next. hi daddy!
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what is the deeper concern that you want to express here? >> that there is no substance. right? it's one thing to talk in headlines. and it's another thing to, you know, understand the issues, convey an understanding of the issues, to show analytical skills and i don't think donald has done that. >> that was mark cuban railing on donald trump on "closing bell" just over a week ago. endorsing hillary clinton outright on saturday night. and cuban isn't the only one speaking out against trump over the weekend. john harwood joins us now. first and fore most, john, the latest poll numbers after a wrap-up of the political action. welcome. >> well, kelly, not bad for hillary clinton. we'll get to that in a second. you know, the convention weeks that have been the last two weeks have been the party's opportunity to present an unfiltered message to the entire country. but it's a different story when you sit down with an interview and both candidatethat over the
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weekend. on abc, george stephanopoulos pressed donald trump whether he was too closely aligned with vladimir putin of russia. >> he won't go into ukraine. you can mark it down, put it down. >> he's already there, isn't he? >> well, he's there in a certain way, but i'm not. obama there and frankly, that whole part of the world is a mess under obama with all the strength that you're talking about and all of the power of nato and all of this, in the meantime, he's going away. takes crimea. >> you said you might recognize that. >> i'm going take a look at it, but you know, the people of crimea from what i've heard would rather be with russia than where they were. >> hillary clinton was pressed herself by chris wallace on fox news. he pressed her on whether or not fbi director james comey had shown the public whether she made statements that were not true. >> he said my answers were truthful and what i've said is
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consistent with what i have told the american people. that there were decisions discussed and made to classify retroactively certain of the e-mails. >> now, the initial response that we've gotten to the public from the conventions in a cbs news poll showed a bounce for hillary clinton, 46-39 over trump. we'll look for other polls laettner the week to see if the number holds up u. under scrutiny because it's difficult to pull after a big event like that. this evening, hillary clinton's going to be appearing omaha with warren buffett. another like mark cuban, who's sided with hillary clinton. >> those poll number, the bounces after the conventions seem to me they both got a large one, historically speaking, right? >> again, it's hard to determine the bounce yu get when the on vengss are so close together and when you don't have a lot of
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polls to compare. we have at nbc, wall street poll that will come out next week that i would trust more than anything taken in this heat of the moment. you saucon flikts polls, but it's inevident bable that yoir goung to get a small boost in the moment, but what is durable out of that is difficult to project. we had in our poll, hillary was plus five before conventions. i want to see what we see a few days after. >> how much do you think she's going to tout warren buffett's support? >> i think she will tout it as you know, his sort of public projected image, not as one of the richest men in the world. right, so somebody who has this very kind of i'm sensible, i have this sort of down home understand i understanding of o government and i'm a patriot. i think that works. i don't think it's about nebraska's single electoral vote. i think it's about the image of o these thoughtful people who could go either way are lining up behind her. there's a billionaire from
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omaha. >> and eats peanut brittle, elon. but that's, he's the latest in a long line frankly of kind of wall street if you want to call it types. throwing her support behind her. >> hillary clinton has sort of the shied away from backing calls from progressive wing of her party she has carefully sort of navigate that to say i support a risk. not quite going that far to say glass-steagall, that's my thing. >> what about mark cuban, john? what do you think it gets her? >> i think mark kun cuban is somebody who's pretty well-known beyond his business world for owning the dallas mavericks and you know, has somewith sports fans, but i don't think it gets her a lot. >> up there in a batman t-shirt.
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man of the people. thank you. john harwood, we look forward to that "wall street journal" nbc poll. kanye west is calling for an end to music streaming rivalry between apple and title. we'll get you those details when closing bell comes right back. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!
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welcome back. kanye west is taking stand against the music streaming wars and urging apple to let the kids have the music by buying title. it's jay-z's smaller music streaming service. kanye is backing the plan in a series of tweets. he tweeted quote, apple give jay his check for tidal now and stop trying to act like you steve. which i think is a reference to steve jobs. >> i'm wondering who he's an advocate for? music consumers? does he think apple is is going to be better? >> let the kids have the music. his kids are babies. next generation. does apple offer that, too? i don't think so. i think they just offer one. >> tas not one of their calling cards the way it is, but that's proven not necessarily to be a big draw. >> or maybe the compensation from tidal to artists is better
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than what the others u offer, so maybe he's pushing for that. >> i feel like ever since his, he was vindicated in this taylor swift kanye west snap chat video, i have respect for him. i feel like maybe he's telling the truth. maybe he has something to say. >> have you been following him on snap chat? >> i follow kim. so through her. >> that enabled you to determine -- in the right. >> you watch the video, it was very telling. >> tomorrow by the way, will be a special edition of closing bell. i'm heading down to atlanta and we're going to sit down with some heavy hitters including home depot's ceo. delta's ceo, atlanta fed president and we're going to have a couple of other industry entertainment guests. rich mckay, ludicrous, jermaine dupree and tom fanning. not in the entertainment business. he's the ceo of southern company. he'll be joining me at 2:30 p.m.
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eastern. so ludicrous, we're going to ask him about you know, the kanye west. >> this has to be -- >> we can't snap chat. he's not on social made area anymore. michael mwill do it for you. >> i think you have to ask to see the workings of the machine. >> that's not a bad question. dennis, what's the secret sauce. what are you guys looking for all of those guests aside in terms of what do we need to be watching in the market? >> obviously, oil, but auto sales. we have tomorrow and that's something i think a lot of people are focusing on. >> bank of england's meeting coming up. august 4th i believe. jobs numbers. hard to believe they come around again and of course, the medicine fiminutes. >> how high a jobs report do you think it would have to be for the fed to feel we're going to hike one more time. >> i think what happens in this jobs report is is not necessarily the most important number. the next meeting is not until cement, so we have august to go.
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so, i think that whatever number comes out this month, it could still be derailed the next month. >> the bar is high. >> very. >> 50 40 0, 500. >> guy, thank you so much. that does it for us on closing bell. see you in atlanta tomorrow. "fast money" begins now. live from the nasdaq overlooking new york city's times square, i'm melissa lee. your traders on the desk -- tonight on fast, worry about an august swoon? don't be. weave we've got the three stocks that tend to rally during summer. plus, the man who called the declining -- another group of storks will suffer a similar fate. later, while the s&p continues to make new highs, some unlikely countries are crushing the u.s. markets. but first, if you haven't noticed, i've been away from the show. >> worried sick. >> it's actually been two weeks.


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