Skip to main content

tv   Closing Bell  CNBC  August 10, 2016 3:00pm-5:01pm EDT

3:00 pm
in six locally transmitted cases in the united states all in miami. let's hope it stays there. but again a lot that's come in, but only six locally transmitted. let's keep it at six. thank you all for watching. it's been a pleasure. >> and "closing bell" starts right now. and welcome to the "closing bell." i'm in for sarah evans today. >> you're back. >> i'm back for more. >> i'm bill griffeth. go to twitter, you'll understand. big day for earnings, all sectors today, disney reversing higher today. coors and ralph lauren, moving in opposite directions and wendy's is under pressure and then after the bell more. we've got numbers from shake shack, which is headed lower, ahead of its quarterly reports. we will talk about all of that over the next couple of hours here. >> also new problems forres it
3:01 pm
lae auto pilot feature. tesla owner in china was in a crash and said the auto pilot is to blame. claims the salesperson told him, promoted the feature as self-driving. so does tesla have a marketing problem on its hands? that's coming up. >> what exactly does auto driving mean? >> not self-driving apparently. >>. >> apparently. oil moving lower. saudi arabia reporting record-oil production even as venezuela looks to curb global output even though it badly needs the revenue as we all know. geo-political implications hyped oils move. we've got that very important story coming up here. >> and bill's absolute favorite story. the business of golf. no talking it a 23-year-old professional golfer, justin thomas, about getting young people involved in the sport and golf's returning to the games. >> oh, made the putt. >> that was like a pro golfer.
3:02 pm
from an amateur -- >> thank you very much. was very much an -- >> now i know why you're wearing your golf shoes. >> now you know why i was wearing golf shoes yesterday. >> courtney reagan is covering the retail results from michael kors and ralph lauren's susan lee is following wendy's and the trouble in the food space right now and julia boorstin is back with the latest. there is more on disney's results, she tells us. let's start with courtney, court? >> ralph lauren leading the day all day. shares are up by about 9% in change so investors obviously a ill little positively surprised with the results today. the earnings and revenue coming in stronger than expected. and comp sales down 6%. that's not great but it is better than the same quarter last year. and we know of course that ralph lauren is undergoing a transformation so ceo stephan larson who took over two months
3:03 pm
guy. with the guidance it is sticking with now. ralph lauren, pruning back its brand portfolio as well as stores and some of those positions. when it comes to the employees themselves. mou michael kors investors aren't as happy. shares there are lower today after they reported the results. they did beat nicely for the bottom line by about 14 cents. revenues also came in pretty descent. however the same store sales, comparable sales, disappointing. done more than 7.5% and that trend getting worse, worsening over the last six months or so. and we know that there is some concern with what's going on in the whole sale channel which of course includes department stores. these handbag makers, premium bags are not liking all of the promotions that the retailers are putting into place, increasingly so over the last several months and as a result they are pulling back on what they are saying the stores are allowed to discount as well as the supply in general when it
3:04 pm
comes to coach from yesterday. back to you guys. >> now courtney, we can tally the score. we've gotten coach yesterday and coors and ralph lauren and kate spade. feels like winners are coach an ralph lauren. i just wonder, have they gotten more on trend with fashion and are they doing a better time keeping up with the zara's of the world? what is it that is making them stand out this quarter? >> what is interesting is they are both going through transformation and part of that transformation has to do with reigning back in that image. after years of having just a lot of supply out there and also that lowers the prices and i think that they realize that is not the way to end. that's not the way to end the game the way they want to play it. they want to make sure they restore that brand image and in order to do that they have to get the supply and demand back in balance to balance prices. i think is two transformation stories that investors are happy at left about the beginning progress that they are making. >> aep customers with the deep
3:05 pm
discounts. >> thank you. >> meantime, wendy's not doing anything to ease fears about the slump in restaurant stocks and susan lee has details there. >> this is the same sort of sales and lower sales for rest of this year and pretty much a trend we have seen across the fast-food segment from mcdonald's to burger king and market slow down in restaurant sales growth in the first quarter into the second. and one major reason which has been echoed once again by wendy's president on the earnings call. he said falling beef, chicken and egg prices means groceries are cheaper and eating out is more expensive and the gap is the widest since the recession. wendy's joined the pledge to move to using chickens free of antibiotics by the year of 2017. yum and kfc restaurants have not. as a result we have two shareholder advocates pressuring kfc to stop the routine use of antibiotics and the chicken that they use and i spoke to one of
3:06 pm
them, the group based in oakland, california. representative group of yum shareholders and they wrote to me saying reckless behavior with antibiotics is bad store stock value and stability and investors want yum to be on the right side of history and we want the company to be profitable in 50 years and not just five quarters. now yum's taco bell and pizza hut have made commitment to stop using antibiotics. humans, mainly use. and chicken supplies, and experts and this is really important to prevent the rise of super bugs in the future which could be resistant to medication and that is something that people are fearful of. back to you guys. >> i've never heard that comparison used. although it makes a good deal of sen sense. cost of eating at home versus eating out. it is cheaper at home. what are you eating -- >> grocery deflation. >> protein prices have come down. beef prices down 7%.
3:07 pm
chicken down 1 to 2%. egg prices set to fall 15 to 13%. you see the gap of eating at home and cooking your meals. i know do you that a lot, bill, instead of going out to restaurants and paying that heavy gap in between. right? the value proposition doesn't make sense any more for consumers. >> and restaurants don't lower on the cost because their costs are rising with higher wages and other problems. >> yes. i spoke to analysts and they say on average regardless of how cheap their input costs are they still raise prices 2% to 3% especially traditional main menu items. they are always guaranteed to go up each and every year. if you are dining out, then what am i paying for if i can do this better, cheaper at home. i understand. >> i will have to remember that. maybe i'll get in the kitchen one day. >> i'll give you a lesson sometime. disney shares now higher on its results from last night. one of the few bright spots.
3:08 pm
julia boorstin has more on disney's results and i guess the exhaling that shareholders are doing today, julia. >> yeah and reaction of analysts. and beating expectations of top and bottom line, thanks to the performance of the film studio, including captain america civil war and finding dorry and theme parks with higher analyst spending and on the news that disney is investing $1 billion for one-third stake in bam tech. and analysts are largely positive on this move. a closer alignment with video streaming is a strategic positive that enhances disney's content delivery options. fbr analyst applauds the move because he said they have to go more direct. he sees the new espn service a
3:09 pm
niche and not going forward. saying can balancization of the core business is a risk so execution is key. disney ceo told me yesterday that while he hopes the traditional tv bundle doesn't erode, if it does disney will be prepareed. bill? >> all right. julia thank you very much. julia boorstin in los angeles. now to our "closing bell" exchange for wednesday. joining us today, kevin from the private client groove. steven sarge gill foil and rick santelli checks in from chicago. sarge, what is moving this market? we are down 50 points on the dow. another one of those very narrow days but what are the at lift you're watching here? oil and overseas or what? >> a couple of catalysts. let's face it. this isn't an awful day. nothing is technically broken. we have an oil inventory number that's larger than we would like.
3:10 pm
we saw what came out of saudi arabia. so we got a hicky on the oil price. that put a hurt on the energy sector. the financial sector is in the hole. why? treasury auction. it came in stronger than expected. better far expectation than last time or was expected. this hurt the fms as it is tougher for them to raise interest rates. and get things going in their direction. so you have two sectors that are really hurting overall indicys. the rest of the record is flat. >> and selling the dollar which we have been seeing today and is that attributed to the fed expectations or central banks overseas? >> well when you have from 1% to over 50 basis points, i think currencies have large positions, they are knee-deep in lots of financial structure. so everything gets rearranged.
3:11 pm
sometimes it happens in a logistical fashion that's very counter intuitive. i think today's big story and big story of our lifetimes continues to be what bank of england demonstrated. they have a buy back equivalent of $ billion. than much. but 3% of the deal, roughly $65 million, investors didn't throw it out there for the bank of england to buy. and it makes sense. sarge talking about good demand. but over 70% was indirect bids. that is stellar indirect bids representing large financial institutions. foreign central banks and that is the group that needs the paper, you know? and think about it. we talk about the election. how many times on all the channels and all the newspapers have we heard about tariffs and free trade? negative interest rates, tariff of all tariffs. tariff on steroids. okay? because it is a tariff on
3:12 pm
anything capital. any money movement. any profitable endeavor is affected by it. we need to talk more about it. i still don't see how guilted 50 basis points or notion that they are two and three-year notes in sixth digits will fix what they don't even know will ail the uk. this needs to be the front and center story that everybody is talking about. and i think the reason it isn't is because we've never really seen it before so it's not branded in a way that anybody knows the outcome. >> i think the other reason, rick, is that stocks are doing quite well. especially overseas. back in a bull market. 20% off the february lows. hong kong at seven-month high. european stocks -- >> the most aggressive bull markets of all time. i don't disagree. but based on my retirement, i'm part of that stock package. it doesn't surprise me that these stocks are holding up but that's not a republicaner stamp on the sanity of bad policy.
3:13 pm
>> kevin, there was fawn story going around. maybe you have seen it. they took the price targets for each of the 30 components of the dow jones industrial average and figured out if each of the 30 stocks hit the price targets the dow would hit 20,000. are you in the 20,000 camp at this point? and when do you think -- >> about 7% higher from here. >> yeah. that's not -- that's a little aggressive, i think. by are kind of around the 6% kind of number. >> and officially, i have watched crossing here and we are thinking 19,500 makes sense 12 months from now and the fact is that the data seems to be getting better despite what rick was talking about in terms of negative interest rates all over the place. so there is a definite cleavage in terms of what financial markets are saying.
3:14 pm
and interest rates are telling us one thing about the state of global economy but if you look at some of the data here and equity market it seems to tell us by are picking up. one of the two things have to give. we would think 19,500 on the dow a year fwr from now makes sense given the fact that things are improving. >> and i wonder within the s&p 500, and financials under pressure today, and kevin lately they've been out performing and crossed over into the black for 2016 yesterday technology also taking more after leadership position. are these important signals? >> financials have been a chief for a while. energy has been lag, dragging down the value side of the equation. and value is where it's at. for somebody looking at higher priced growth stocks looking to find some value here and i guess financials would make a lot of sense particularly if all you're doing is looking at book value.
3:15 pm
so i can see it. i don't know how much it has in terms of legs. but i would say that if the economy keeps getting better, you would want to own things like the -- like the industrials and yes, i think the financials would make some sense given the valuations but you have to be willing it take on the risk that comes inherently and has a lot of leverage. >> i think that the financials, i will jump on you here a little bit. i think financials you have to be a sharp shopper. i wrote about that about a month ago. i don't think you can just buy the sector. i think they have to be very wise here. i think technology has been the trade for about a quarter. i think technology has been the trade and it continues to be the trade. about the only sector i've said for months on end i have no plans to get out of that. >> because of the yield? >> no, because technology is where you have to be right now. i think this is, if you look at charts and played this game technically which most guys have to play, this is where the momentum is. >> and now the names that really
3:16 pm
have those high valuations, ridiculous valuations, but older, i don't want it name them, but older -- >> we know who you're talking about. >> yes you do. >> mature. >> that's who i want and i think that's who a lot of guys want and they do seem to be moving the right way. >> going back it what rick said -- >> very quickly, sarge. i got to go. >> okay. negative interest rates, they are conversive ratios. rick is spot on. if you have negative or close to negative interest rates you have ratios that go to 20, 22 or whatever they got to go. >> old trade that point. thanks, guys, appreciate it. see you later. >> i think we are almost ready for closing countdown here. >> not yet. i still have to get my currency chart ready for you. >> the dow is down 43 points and spike the rally in disney today. >> we talked about energy under pressure. okay. another internal fight on its hands. venezuela wants to curb production to help increase oil prices.
3:17 pm
but saudi arabia keeps pumping out crude at a record pace. up next, we will discuss the impact this could have on both the geo-political landscape and of course on energy prices themselves. >> plus, as we've mentioned, tesla dealing with yet another auto pilot crash. this time in china. and the driver there contend the sales person who sold them the car promoted auto pilot as a self-driving feature. we will find out if this is yet another major headache for tesla or is something lost in translation? coming up on "closing bell." stay tuned. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at
3:18 pm
3:19 pm
3:20 pm
40 minutes before the "closing bell." s&p down. nasdaq selling off by .4 of a percent. no technical damage just follows the pattern of these mini rallies and mini sell-offs we have been seeing this week. >> two steps forward and two steps back. or thereabouts. one of the worse decliners in the s&p today, perrigo, after missing expectations and lowered
3:21 pm
its full-year guidance. blaming competition and price erosion in the prescription drug business. meanwhile, eli lilly, after its breast cancer drug failed it meat goals bb but they still recommend continuing the trial through the first half of next year. >> we're also watching oil prices lower today as the global oversupply situation weighs on the market. venezuela is hoping to get a meeting of oil-producing countries to discuss a production cut and help prop up prices as its economic crisis worsens here. >> and talking about the geo-political fall out for oil price answers back with us from rdc capital markets, it is sort of counter intuitive that country that needs the money the most is looking for a production cut of some kind where the country that doesn't immediate the money, saudi arabia still want to keep the production the way it is. i know why they want to do that. but it is just a strange time right now for oil producer. >> if you're venezuela, you're
3:22 pm
on a bus driven by saudi arabia. so they are doing everything they can to try to get the powerful producing countries to pair back production. i didn't expect them to actually cut production but if prices were to move lower it would free the discussion and change sentiment by opec signaling their willing to consider new measures. >> but we learned in april when that did happen they couldn't agree on any supply production changes that prices look. >> they could all agree except one one try. so all eye owns saudi once again. i was at the opec meeting in june. i will tell you the saudis took a more conciliatory stance towards opec. they said look we want higher prices. everyone wants higher price answers prices will move higher. but if we move lower people say the saudi arabia, what do you do about it? you are now producing at highs and is there anything to back up talk that you want higher prices. >> they don't want higher prices
3:23 pm
for them as they come back on-line and u.s. producers as well. have they done damage to the producers in the united states? >> i think this is the whole -- i i think the saudis thought in 2014 that lower prices in the '70s would cut u.s. production and shocked by the resilience of u.s. producers. i think where saudis are bouncing out for themselves and talking about ipo, low oil prices is not the greatest time to talk about that. they have incentive for higher prices. they don't want it fully pass on and spending austerity measures and it is a balancing act for them as well. >> i wanted to talk to you about u.s. inventories. we did get that surprise number. second biggest weekly draw in u.s. gasoline stocks this summer which has been supportive of prices but on the other hand we did get this growth and crude stockpiles. what is going on? >> this was a gasoline driven sell-off. the gluten of products market that really sort of dragging us down this summer. we are starting to see economic custom refineries.
3:24 pm
this is leading to higher crude numbers and like the market is choppy for a while. we have to clean out this gasoline overhang but that will happen overcoming months. >> i know is a mug's game but gasoline prices have been coming down precisely the time of year and because of the demand higher for summer driving and maybe even as we head into the fall when demand goes down, prices will continue lower for gasoline. do you see that happening? >> the big issue i think what spooked the market is everyone thought with we got past july 4th and we still have the big numbers. that's one of the real concerns. but again, the key thing for the market is we just have to get rid of this product overhang. we see that coming but it is going to take some time. >> as a driver, i'm in no hurry -- >> but in venezuela, you're like, i need this to happen because my country is about to implode. i think if you go below that i would expect opec language to
3:25 pm
really really accelerate. i fail to see where the next bearish catalyst is in the market right now. >> so your end target? >> end target is 58. >> that would have to be a big climb. >> but we could have a short term rally. >> and rbc capital markets. good to see you. >> thank you. >> and good day to have her on. >> everyday is a good day to have her on. >> less than 40 minutes to go before the close willing bell and dow is off 32 point. it is coming off the lows here. and lower across the board. s&p 500 is out by a quarter percent. staples and telecom sectors are green. that's what is driving the s&p. >> give me one second. look at your dress. it looks blue, doesn't it? i told you. >> it doesn't look as blue as your tie. >> on we go. have you heard what apple is working on? developing an all-glass phone but won't come until next year. coming up, we will talk about
3:26 pm
whether apple shares are worth buying ahead of that release of the tenth anniversary iphone. >> is it rose gold in all glass? first we head to the summer olympics in rio where michael phelps and u.s. women's gymnastics team are taking center stage and a lot of gold medals. back in a moment on "closing bell."
3:27 pm
3:28 pm
3:29 pm
lower by the price of oil, oil stocks going lower. financials have suffered after a stronger than expected ten-year note auction today. dow down 32 points even though disney's rallying. s&p is down almost six point and the nasdaq down 18. meanwhile, delta shares continue under pressure today after monday's major outage pf officials for the carrier say they are hoping they would return to normal operations by mid to late afternoon today. but wouldn't you know, thunderstorms hit the east coast and they may be slowing down the process. in total delta cancelled around 2,000 flights since the outage began on monday. >> wow. american men's swim team and women's gymnastic team helping the u.s. rack up even more gold medals in rio. live there with the latest details, boy, carl, is team usa putting on a show. >> very exciting. >> so true, guys. day five and lesson so far is clearly that americans are
3:30 pm
really good at swimming and gymnastics. take a look at michael phelps last night, possibly the story so far, of the rio games. eight years after beijing. taking his medal count to 25. 21 golds. defeating his rival from london, le clos, in the fly. he will compete tonight in the semis. he was asked last night if his medal count surprises even him. >> that's a lot of medales. we got a lot of medals. i mean, it's just insane. it's mind-blowing almost to me. you know, to think about when this all started and the things we've been able to do together in this sport. >> take a look at this photo, guys. this is michael phelps ten years ago, signing an autograph for a the-year-old fan. today that young lady is katie
3:31 pm
ledecky. two gold medals of her own after winning the 200 meter freestyle. she is on track for four gold here and five medals overall. another story on just how swimming is passing the torch. finally, guys, women's gymnastics. first back to back olympic team gold and team competition ever dominating russia with silver and china with bronze. and it is really sort of an embarrassment of riches when it comes to these two sports. and we haven't even gotten to next week's track and field. an amazing story so far to the u.s. here in rio. guys? >> great, great, great stuff here. by the way, before we let you go, sarah and i are interested and we asked in the interest of getting the full story out of rio that the use of tinder app has skyrocketed in the olympic village. tinder folks are saying that it rose by 129% over the weekend and they expect that trend to continue throughout the duration of the olympics.
3:32 pm
do you have any comment or any insights into that? >> i can tell you there is some athletes with down time. let's say that, bill. and add that for tinder, brazil is their second largest market. take that with how you will. 150 million swipes a day. and 15% more matches here than the global average. but you can imagine that the olympic fever so to peak is just going to add fuel to that fire. >> yes. the real story. >> behind the scenes. >> thank you, carl, for playing along. >> bye, guys. >> time for cbc news update and sue herera. >> here is what is happening at this hour. freight train derailing in kentucky. least 22 of the 125-car csx train going off the tracks north of lexington. nearby residents have been ordered to shelter in place because one of the derailed cars was carrying sulfuric acid. no injuries have been reported.
3:33 pm
>> the jogger strangled in new york city last week is raising $100,000 for a reward leading to the arrest of her killer. phillip says that his family has created a go fund me page to increase the reward in hopes of finding her killer. wildfires fanned by strong shifting winds continue to burn in the iberian peninsula forcing hundreds of people to evacuate their homes. more than 2,000 acres have been burned. and this is perhaps one of the most amazing stories out there and an auto dealership worker has gone on an amazing lucky streak. earlier this month, mohamed bashir survived the dramatic crash landing in dubai. remember it exploded. well on tuesday, he found out he won a million dollar duty-free sweepstakes. he said he will continue working at his dealership in dubai. that's the news update at this hour. he should go buy a lottery
3:34 pm
ticket. hope the luck doesn't run out. >> that's a wonderful hot streak to be on, by the way. >> it sure is. alive and million dollars richer. >> and in the trading session here, we have the dow down 3. points as we head toward the close. >> looks like exxon and receive ron are bringing up the rare. we will hear from a top market strategist who says a big fourth quarter rally could be in the cards once we get through summer slower season for stocks. >> and we will lower beef prices help shake shack's earnings? the hamburger chain is set to report results after the bell. instant analysis of those numbers as soon as they are released. coming up on "closing bell."
3:35 pm
3:36 pm
3:37 pm
crude oil closed lower by 2.a%. chinese retailer is the best right knew in the nasdaq 100 today after unexpectedly posting a quarterly profit thanks to a large increase in its profit margins. although, bill, sales did meet wall street -- miss wall street estimates for jd. >> all right. 23 minutes left in the trading
3:38 pm
session here with the dow down 43 points. ginning me on the floor of the new york stock exchange, when last we spoke on friday before they brought that cake on, i never got the answer. you said you were neutral, mark. but the old adage that the cliche, you are never short a dull market. >> being neutral since about 10:30, after the jobs number came out, the market hasn't done anything. this is probably one of the most narrow ranges we've seen. >> isn't that significant when you consider where we are in the market cycle right now. aren't we due for that correction? we've been climbing higher ever since the brexit vote. >> you talk to me about a correction, i've been waiting for one for a while. very isn't seen it, just a dull market. don't short did but you are afraid to buy into it. they said i'm going to take pass, go on vacation and see what happens in september as we approach the fed and things of that nature and maybe the market will give us real direc because we don't have earnings any more.
3:39 pm
that's what we're probably looking for in the next 2 1/2 weeks. >> you keep an eye on oil, is that the idea? >> as i said today, i'm watching precious medals. golds, silvers and bronzes. go usa. obviously i think we are looking at gold. gold is probably the one thing we are looking at. why is gold performing so well and the market performing so well? if gold does break out as many people talk about, the first leg of a big move up and that could tell the tale for the whole month. >> thanks, matt. see you later. >> back to you. >> all right, gotcha. let's show you where we are in the market action. as we said, off the lows, but still lower on the day, nasdaq hit the hartest down .4 of 1%. dealing with an auto pilot related crash in china. up next we will discuss how concerned shareholders should be about it. plus, never ending attempt to improve his game, bill spends some time atop golfer justin
3:40 pm
thomas his tips and outlook for the future of the sport. justin's and billes a. that's later on the "closing bell." >> engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better and use less fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here.
3:41 pm
3:42 pm
. if you're just joining us as
3:43 pm
we head with 18 minutes left, dow is down 48 points and ney owely traded dayes. s&p is down 7 and the nasdaq is down 20. you just wonder what that catalyst will be though, sarah. >> there are earning specific movers. ralph lauren up 9% and s&p earnings. >> and yelp surged after their earnings came out. >> raising full-year revenue and that prompted raymond james and axiom capital. >> it is more trouble for tesla. and the model s vehicles got into a fender bender while the feature is in use. >> and the sales person who soltd them the car promoted the car as self-driving, says the buyer of the car.
3:44 pm
>> i guess is this a translation problem or what do we make of this? there is some confusion about exactly what this auto pilot feature is on the tesla molds here. >> yeah. i don't think it is translation problem. we've seen similar issues, you know, across the parts in the u.s. i think that this has -- these are features that are supposed to be about driver's assistance. we are talking about lane keeping. we are talking about adaptive cruise control. automatic braking. and despite it being about helping the driver, we're seeing tesla essentially implicitly at least market it as autonomous driving if only through the name auto pilot. i think this is like a bit of cannot fusion among the buyers of the cars and i think that creates a real problem. i think the negative side of it is sort of like casting a bad light on autonomous driving.
3:45 pm
we don't view it with autonomous driving or direction of the industry. we view it as an execution problem with tesla where the marketing is a little bit going aggressive here. >> why don't they just change the name of the technology from auto pilot to explain what it really is? driver assist or just something to make it clear? why are they sticking to their guns on this? >> i think that it has been something that has been very powerful for their brand image. essentially the ability to say look there is, you know, thousands of global auto makers worldwide and here we are tesla the newcomer and we are the first one with the autonomous car. i think there is a tremendous love for the -- the company stores don't have dealerships there, the company stores where sales people can say look, let me give you a ride. i'm not actually touching the wheel. so it is something that has been very powerful for them. but it is clearly misleading and something has to change. >> i can hear the voices of
3:46 pm
tesla supporters that we're knit picking. i deon't want to minimize the crashes, but it is handful. and some have fatalities. we don't want to minimize that. but are we knit picking over a to technology they are working on and trying to perfect at this point? >> i think so. it is truly not about this technology. i think that has arrived to go through steps and be perfected. i think it is truly something thane creases are cautious execution in general. this is one of the pieces. aggressive use of technology. but essential also missed pretty much every single milestone it set for itself on the production ramp of model x. that doesn't give us comfort at all in terms of its ability to multiply by 10 its production by the time you serve like two years out with the model three. we've had some quality issues as well and that adds to all of that, and this proposed
3:47 pm
acquisition which adds even more on their plate for a company that doesn't have the best track record and execution. i say it is a bigger picture than just auto pilot. >> all right. >> down 6% this year. >> thanks for having me. >> and by the way, tune into squawk box tomorrow morning. donald trump is on talking about his economic plan and his campaign's latest controversy. that's tomorrow bright and early at 7:00 a.m. eastern time where syria is having lunch. >> mid morning second breakfast. >> and in the trading session here, dow is down 53 points right now. >> and talk about earnings, lineup. up next, a preview including how those lower beef prices are impacting restaurant's bot oom line. >> wul street's consensus one-year target for the dow is now 20,000. we will find out if quincy cross by agrees with that bullish outlook when we come back.
3:48 pm
my analysis shows your stories are actually about human connection, even love. great storytelling needs drama and empathy. my cognitive apis can help any business better connect with its audience. you should try writing a book. better connect wind a rote hotel. bring the family. i do not think that is a gooidea.
3:49 pm
3:50 pm
(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. we breaking news regarding hillary clinton. what's the detail there, john? >> bill, hillary clinton's campaigning in iowa, which is a
3:51 pm
swing state in this election. she just responded to donald trump's comment yesterday about second amendment people taking action. here is what hillary clinton had to say. >> his casualty cruelty to a gold star family. his casual that countries should have more weapons and now casual inciting of violence. every single one of these incidents shows us that donald trump does not have the temperament to be president and commander-in-chief of the united states. >> casual inciting of violence, that's what she called it. she said before that little rift we just heard that words matter for president of the united states. now donald trump is speaking at this same time in virginia where he is campaigning. he is not addressed this controversy directly.
3:52 pm
he did condemn the press what he called dishonest and said it was capable of making a nonstory into a huge story. that seemed to be an indirect illusion it what we are talking about right now. he also said we have to protect the second amendment which is under siege. do not know if he is going to address it during the remainder of his remarks. we'll monitor and find out. we do know though through reporting by colleagues at cnn that secret service has spoken to the trump campaign more than once about trump's comments and trump reportedly told the secret service that he was not intending to insight violence. still has not said so publicly on his twitter feed or appearance. we will let you know if that changes. >> all right, john harwood, thank you very much with the latest on that. we have earnings coming you. shake shack reporting after the top of the hour. susan lee has a look at what we are expecting right now. susan? >> wendy's, mcdonald's, burger
3:53 pm
king, all three big burn burger chain reported same source sales misses for the quarter. so revenue is important but comp sales is the main metric that we want to focus in on on shake shack earnings. and if there are lower sales the stocks will likely go lower. the stock is not cheap. it has forward earnings. and show-me valuations and now even if those numbers do come in line we are still looking at a fifth straight quarter of deceleration. so there could be some valuation to be taken off the table. back to you. >> good point about the valuation. thank you. meantime, joining us on broader mark sets quincy cross by from prudential financial. so we are looking at this market which appears to be flat but there are sector stories beneath the mud energy and financials hit hard today. and you have been looking at health care and industrials as well. what stand out? >> what stands out really is that the market's being moved by the ten-year yield by currency
3:54 pm
and ultimately underpinning that is data. and the what the market thinks the fed will do or not do. so you see a very fast-moving mark pept one day have you utility and telecom leading only to see the next day sell that, get into financials. so we know the algorithms, and this is doing well. >> and they have a reprieve. with the first go around, she said no rate hikes. the weaker dollar helped emerging markets. that too can change if the clutch of data coming in between now and december really get your momentum. you will see the dollar rise and trade changes. it is almost as if this true sli a traders market. >> there are a lot of emerging markets. which do you like? are they all equal? >> no. but one thing we know bill is that retail investors will just put money into an emerging
3:55 pm
market fund. it is major momentum trade. so we have seen brazil do very well despite terrible economic data. >> and political turmoil not to mention. >> political turmoil but the catalyst is political. new leadership team coming in. hope springs eternal. russia has done well, thank you, oil. so the catalyst for all of these is interesting. however, we are seeing money m emerging markets. small cap. that are domestically focused. and if you can with stand the volatility, it should help. >> all right. always good to see you. >> thank you so much pch. >> we will take a break with the dow down 47 points. we have the closing countdown in a moment here.
3:56 pm
3:57 pm
3:58 pm
2 minutes left with the dow down 48. as sarah was mentioning, sector wise you fine the action today, oil, one of the big movers. all kind of cross current going on with saudi arabia. and not responding much to venezuela's call for production cut. even as we saw that cut-in in inventories there. the market at 4145. bob is here with me. >> that is 5% trading range. >> and took down exxon and chevron in the dow component as well. and much better than the last one which is just dismal.
3:59 pm
this time have you good demand, especially from oversea answers at 150 again. >> and the market here and -- >> and the knee jerk reaction, and the bank index, and also on the down side. and potential losses from the banks and some of their lending to some of the energy jocks. >> and shake shack reports tonight. wendy's did this morning and disappointed. a hard-hit sector here lately. and talk after restaurant recession. and because prices are just so high for the commodities right now. and they can't raise prices too much in the fast-food industry. >> one of the things that neighbor, talk to neighbor in the restaurant business in new york, and they are terribly concerned about the fact that they have to potentially pay a
4:00 pm
$15 rate and are in favor of people making more money. >> and bob will repeat everything he said in the countdown in just a moment. but we will move on. we have the burger battle sponsored by b sponsored by budweiser and the ringing bell and we have more from shake shack coming up. >> welcome to the "closing bell." bill will be rejoining us in just a moment. let's show you how we are finishing up the day on wall street. modest declines across the board. and a loss of 36 points. s&p 500 down 6 or .3%. and the biggest loser is energy, financials, number 2. nasdaq closing the lowest of the bunch down about .4%. and remember tech heavy nasdaq the heavy performer the week and month. now investors get ready for
4:01 pm
shake shack and coverage of those results coming up for you. and you can see whether can you live up to what is high expectations. and joining us for the hour, cnbc contributor john and jim bianco from bianco research and brian kelly. we jury just talking about retailers ralph lauren ending on top of the s&p 500 up almost the%. >> yeah. up almost 11. >> you are buying some stocks? >> i like that one a lot. i traded in and out of ralph lauren today. thank you for telling me and we always do. i like the turn around going on in this retailer. and we saw kate spade sold off even down there on the depths below a 15 i believe. stock turned around and raced back to the upside several
4:02 pm
dollars. didn't take back all the loss but a lot of retailers turned along with it. so the consumer we heard in the gdp last week spending up 4.2%. and pulled a lot of that and they spent a lot of that on ralph lauren. >> you don't pronounce it ralph. this is ralph. bk. oil. and i'll let you choose. financially, the two drags in the market today. >> you know, oil is i think somewhat intriguing. right? we've had all this negative news. we know that saudi arabia is pumping. we know that there's a huge glut out there. yet remaining relatively resilient until today. and it is a very, very interesting move. and also what i think is exactly what you mentioned, and the fact that banks move with it.
4:03 pm
and one day, august, and it may not be a correlation but certainly something that we have to keep an eye on. >> and jim bianco, i'm glad to talk to you. you were one of the most vocal wore years on the brexit referendum. that the vote went the wrong way and a lot of people, you weren't alone, but a lot of people worry that it would spell major financial and economic turmoil so far in the stock market and it has not. was that a wrong prediction or is it a slower moving train wreck? >> i do think it is a slower moving issue. but it was a wrong prediction that actually if you thought about it what happened was, in immediate days after june 23rd, central banks have it. the fed hike is gone for a year. the boe, bank of england, is now buying more bonds. the bank of japan has been buying more bonds. it is ecb promised to buy more bonds. have you central bank panic.
4:04 pm
gave us more stimulus. and when it wasn't necessary. because in the immediate days after brexit we wouldn't see you turn around the economy and that is feedingity way into risk markets like stocks. so it was the epitome of the bad news is good news story. and here comes brexit and central banks panic. there was new stimulus and that seems to be something that we didn't anticipate coming when we say there is a bad story for the brexit. >> and central bank thought it was bad but the market falls behind. >> we look at when we see that the v shape bottom there as it turned out to be, after the brexit vote and we've just been going side ways after the recovery at this point. and like a plane. and it gets to a certain -- >> and it cruises. >> yeah. >> and that is the important part if you're a bull that it is holding gains and equal weight has made that 10% correction but
4:05 pm
that's the equal weighted s&p. in other words the sector rotation that we've seen has been where the correction has been in the market. started in 14 with energy stocks and so forth going into the thanksgiving. i think we all remember it. just broken 80. crude oil down into the '70s and all of a sudden that opec meeting and thanksgiving, that really kicked off the big sector rotation out of energy. and it's been sector after sector after sector since then. now it seems to be tech's turn to take the lead along with perhaps the financials. but i'm not buying the fanls any more. >> and correlations, remember when it was oil tick for tick, that's how stocks, but the dollar mr. pressure today. and yields lower and stocks marching in place to slightly lower. what do you make of that? and where are you taking your cue? >> well what i make of it is is what doc j was talking about.
4:06 pm
what you are seeing is rotation. we have essentially gone side ways in the s&p 500. for 16 months. do we have 4% this year? and we are pretty much going side ways. the way people are making money is just rotating from one place to another and whatever the hot trade is. that means that you know like crude oil was the hot trade or thing to key off for a while, it's not any more. they turn machines off and move on to something else. for me, the fundamental driver under everything here and that is going somewhat side way answers relative to big run that had and that is a correction and somewhat relatively soon it looks like it want to go higher and that to me will be a longer term trend that we can key off. >> we will get our shake shack numbers here any moment but before we were interrupted with that, what do you make of the consumer these days? and you know, the different retailers has a very mixed story
4:07 pm
for the whole spectrum of big disappointments and big gains and especially in the luxury goods but what role is the consumer playing right now. >> and pushed by lower energy prices and in the first quarter and some of the health care numbers have been muddying the water with it. but i think if you were to grade the consumer kind of like the economy, it has been about average. and with the little bit of volatility in those numbers as well, too. >> and with kate spade and ralph lauren, what about the department stores? macy's -- >> macy's into the report tomorrow, and there was some strong buying at the 34 which is at the money strike. so i followed that money. we will see if it's right, sir. opening print tomorrow and i hope it's higher but that is one i liked terry lundgren, like wlaed he does but that brand has
4:08 pm
been mr. pressure for a lot of months here. >> yeah. a lot with other department stores. shake shack is out and numbers are lower. >> just did earnings per share and 14 sent a piece and analysts looking for 13 cents and revenue ahead of estimates at $66.5 million. and as i mentioned, it comes down to comp sales and in the quart ear slight miss 4.5% and still a miss and analysts looking for 4.the%. and there are positives in this report because they have raise and revenue guidance for the year and that range of 253, $253 million to $256 million, comps in line and as i mentioned right now, the stock is trading up pretty high valuations. so it is show me time and looks like the markets are selling off on the comps. back to you. >> coming off the highs, down the.25 percent.
4:09 pm
brian, do you like shake shack? >> not so much. i get it, it is a unique type of product. when i look at bigger picture it appears that people are spending less money out at restaurants at this time. so you know, maybe you want to catch up and bk doesn't want to touch this. and we see in conference call they raise their guidance a little bit but i wonder why they, what kind of clarity do they have over that? right now it does not look like the market is trusting them. >> so does dj want to take this stock at trading now at 12. times earnings? >> i certainly like everybody on twitter will have fun with this. i certainly like it down 9% from the close. and i like it better down there. i agree with bk. mcdonald's, wendy's,burg arer king and great operators and i think shake shack wonderful concept, too few stores to buy for client and nonetheless i would take a shot on it down this 9, 10%. >> do you see restaurant recession as people talk about
4:10 pm
them? >> no, i don't see restaurant recession. i think shake shack is the unique situation. and you talk about the real high valuation. everything has to go right and when you have the valuation shake shack has. as soon as you report anything that disappoints like your comps, you will have turbulence in that kind of stock. >> it's not just shake shack and the other fast'food retailers are having a tough time as we talked about earlier. susan lee talked about how it is cla cheaper to eat at home than it is to eat out. and wendy's was a good example of that this morning as well with the kind of report they turned in. so it is not just these specialty guys like danny meyers. so i'm asking in the overall, does it work against them to have prices going higher for their raw materials and they can't raise prices because they are all in price war right now.
4:11 pm
>> yeah and they have a big component with it as well and it isn't an economic story as more of a story of customer pref preference answers eating healthy and that moves people from the fast-food retailers and the economy moving slower. >> do any of them entice you? some bigger names and more quality names like starbucks an mcdonald's and showing in comp store sales this past quarter. >> yeah. so listen, i would never bet against howard schultz and starbucks. he is probably one of the best ceos of all time. that's one place i don't want it bet against. that doesn't mean i necessarily am very excited about starbucks. i think mcdonald's, if you have a nice dividend and you're willing to take volatility in the short term then maybe that's play for the dividend.
4:12 pm
but that doesn't mean that danny meyer's not a great operator. i like his restaurants in the city and i want it make sure i stay on his good side. >> there you go. >> so you play rug lee? >> yeah. eight man on the seven j. >> looking forward to that. thanks for joining us today. >> one candidate continues to have e-mail woes while the other seems to have daily communication challengees. coming up, democratic presidential hopeful hillary clinton and her gop rival donald trump continue to be dogged by male and mouth issues it says here. we'll have the latest coming up. >> first an apple iphone that is in a class of its phone. apple sphere aflutter today with reports of the new all glass iphone. look at the possibility wlaen it could mean for the stock. you're watching cnbc first in business worldwide.
4:13 pm
4:14 pm
4:15 pm
4:16 pm
iphone will have an a a sleek glass design, led and no home button. >> we are joined by lauren good. senior technology editor. i think about the poor iphone 7 coming out next month. we will get hyped up about the tenth anniversary phone next year. who will want it buy the phone next month, do you think? >> that's a really good question. so some of the reports that we are seeing now about the potential for an all glass chassis around an upcoming iphone are of course possibly not until 2017. not this most -- the nearest upcoming iphone event if there is in fact going to be an iphone event next month. there are still some changes though that we're expecting to see on a -- an iphone that will come out sooner rather than later that might still be a draw
4:17 pm
for some people but it does seem as though the biggest changes might come in 2017. >> just quickly, lauren, on 2016, what are we expecting in terms of where we are in the upgrade cycle? what sort of new features will be in this new phone. >> we heard the next iphone will lose the 3.5 millimeter head phone jack which has been somewhat controversial. editor and chief of the verge called this move stupid and user hostile. the idea that all of the head phones you've been using the past several years you won't be able to plug into a new iphone. consumers will be forced to move to wireless or bluetooth or use new standard or lightning port in order to use head phones with a new iphone. on the upside, if you remove the 3.5 millimeter jack from the iphone, it could allow more room for other things to go into the phone, like maybe more speakers
4:18 pm
or could just be a thinner design. >> i can never get those damn ear buds to stay in my ear anyway. so i don't care about that. >> i had that problem too. >> so with what we are hearing about next year's phone, this glass design, curve, what are we looking at here? >> what's the point of al all-glass phone anyway? >> that's another excellent question. we don't know exactly what apple has up its sleeve in terms of potentially all-glass iphone. we know it could be better in terms of conductivity. could be better for signals to pass through. you won't have an unsightly antenna band around the phone. could be conducive to wireless charging. and a more interactive experience with the phone. you have seen what samsung's gally s7 edge how the edge is the -- the edge of the display curves over the phone and people say they can see more content on the phone. the sides of the phone can be something more interactive.
4:19 pm
there could be virtual buttons on the side. all kind of things that can happen with an all-glass phone. >> i'm trying to read your expression as we're talking here, john. are you primsed with what you are hearing about what is coming out? >> no. it is like having a swiss watch where you can see the moving parts inside. perhaps that, especially if it lights up and so forth, is something that could be titillating to some users of the phone. but other than that, i would rather have a nonglass iphone. the oled, organic light emitting dial, that sounds cool. but the fact that it is all glass -- >> with all due respect, my old friend, you and i may not be the ones they are making this all glass phone for. >> true. >> up 16% over the last tlhree months, ever since that earnings report, run up and warren buffet, i wonder how much of
4:20 pm
that is an impressed picture that buyers are getting. >> i think it is hype for iphone 7. i'm not unique in this saying that you want to be there for the muss coney center when they make the announcement then three weeks later right at end of the quarter at the end of the third quarter is when they announce it so only a couple days of sales to tell us or not tell us about it. that's typical app toll do it that way. to see it run up into this, no surprise. if it's not bells and whistles, hot phone, that's a big problem. if enough people want to hold off for the oled and all glass phone if indeed that's real, rather than just hype. >> it sounds intriguing lauren but are they playing catchup with samsung when you mention features they have on their galaxy phones right now. >> i mean, it is tough to say. we have seen iphone sales have slowed and the iphone is of course apple's marquee product.
4:21 pm
at this point what we see this upcoming fall has to be something that isn't just table stakes. it has to be something that kind wows people, makes them want to invest in another phone. as you mengted, samsung and other smart phone makers are really starting to you know just raise the stakes in terms of their design, capabilities wlaen they can do. samsung just announced the new note 7 phone that comes with a styleless pen, large display. it is just a really nice phone. so i think that apple's got it -- they have to do something that wowes. >> lauren, good to see you as always. thank you. >> thanks, guyes. >> lauren from the verge. we should mention that verge is part of vox media which is part of cnbc media so a cousin of yours. >> a baby died shortly after being born with birth defects
4:22 pm
associated with the zika virus. >> up next, latest on using genetically modified mosquitos to try to help destroy the zika carrying breed that is invading the u.s. on "closing bell."
4:23 pm
4:24 pm
florida's department of health announcing they are investigating a new case of nontravel zika. >> this comes out of the florida department of health and they are looking at yet another case of locally transmitted zika in
4:25 pm
this area of -- this neighborhood of miami, essentially. locally transmitted cases vee mosquito to 22. they don't think there is any more spread. we heard overnight from a new study looking at birth defects associated with zika. this makes it more keshing. we know it is linked with microcephaly but linked with birth defects linked to joint damage in babies as well. bad and scary news there as well. however, there is a potentially new solution for zika in the form of genetically modified mosquitos. programmed to wipe out their own kind. we talked to ceo, rj kirk, about the size of the market. some pegged it for pesticide and disease carrying at 2 billion to
4:26 pm
$3 billion year. here is what he said about that. >> i think it is significantly more than that and the reason is, it should be born in mind that footprint of this mosquito on a word wild basis is enormous now. basically everywhere between 35 degrees north and south latitude and below about 2,000 meters in altitude. just an enormous footprint and the largest that mosquito ever occupied. >> this is the mosquito called the 80s egyptian. they just got the go-ahead from the fda, saying there is no environmental impact of this technology now they have to go through a vote of local residents in november about whether to do the tests of these mosquitos there. >> have you been following this, bill, right? >> yes. and my question is, how long is
4:27 pm
this going to take? we're talking about a while. but in the meantime how much more pervasive is zika going to become? >> some say we will probably see pockets in the continental u.s. 22 cases in the small area of miami. in puerto rico just raging out of control. so we need better solutions. jack seens are a few years off. as for this, if we wait until november, potential they test then then maybe the test goes for a few months. but it will still be a while. >> and another question i have, in the encouraging statistic we hear is that the mosquitos don't stray more than 300 yards from wherever they are. so it limit that. but the statistic he just cited, the footprint for that mosquito worldwide makes it sound very scary here. >> that's right. these aren't native mosquitos but they do exist in a lot of different areas. they have spread as more people carry them around. that is pretty concerning p. some people wonder if we need
4:28 pm
more broadly to take care of the mosquito problem in general because of the diseases they carry. >> and more money from washington. >> that's another issue. >> we will continue to check in with you on that. time for cnbc news update with sue herera. >> hi, here is what is happening. kurdish rebels carried out two bombing attacks on police vehicles in southeast turkey killing eight people wounding dozens of others. clashes resumed last year after a tenuous cease-fire collapsed. kansas city's water park reopened following the sunday death of a 10-year-old on one of the park's water slides. caleb swab was decapitated on the 168-foot tall ride when one of the shoulder straps even snapped or popped off. former top aid to attorney general kathleen cane testified against her in the perjury obstruction trial. cane was asked to stop an investigation into leaks by a grand jury. and a sad note here as well long
4:29 pm
time espn sportscaster john saunders died. he joined the network in a 1986 and hosted the sports reporters for the last 15 years. the cause of death has not yet been announced. he was 61 years old and survived by his wife and two daughters. >> watched him for years. >> same here. >> didn't know john. never met him. but certainly fan all these years. >> yeah, absolutely. >> study guy on espn. >> quite expected from what we understand but they have not released the cause of death yet. >> that's a shame. >> thanks. >> thanks, sue. >> shake shack out with earnings a short while ago and getting cooked in after hours trade. down over 9% right now. when we come back we will discuss the drop and is it a buying opportunity for investors? >> so just three months ago, one of the pga's top young golfers met with the legendary jack
4:30 pm
nicklaus to get some invaluable advice. and now they meet with expert bill grif edge. >> i'm left-handed. >> and good advice. >> we'll find out when we come back, won't we? caa toas doeve? this clean was like w. itelt ke i had just gone to e dentis it just kind of like, wiped everything cle my tth are glowing. they are so white. crest [hd]. 6x cleaning,white. and at two weeksuperior seitivity relief the leading sensitivity toothpaste and i actually reallyor selike the two steps! crt [hd]. ep 1 cles, ste 2 whitens.
4:31 pm
's the whole pkage. no one done is. crest - healthy, beautiful smiles for life.
4:32 pm
y♪ everything is cool when you're watching a screen ♪ ♪ everything is awesome, ♪ when you're sharing a meme ♪ ♪ a voice remote, "show me angry kings" ♪ ♪ you know what's awesome? everything! ♪ ♪ apps that please, more selfies, ♪ ♪ endless hours of the best tvs ♪ ♪ brand new apps, shows to go, ♪ ♪ awesome internet that's super whoa... ♪ ♪ everything is awesome xfinity. the future of awesome.
4:33 pm
let's look at how we finished the day on wall street. weighed down by big energy names. s&p 500 closing lower by .3%. and nasdaq hit hardest. energy and financial bill were the biggest laggers in the session. >> here is a look at shake shack. we mengd earlier, stock sharply lower falling on the heels of its earnings report. we're wondering though, already is it a buying opportunity after this decline? >> let's bring in jack moore. it is something to wonder when you see such a big decline in the share price though. this stock has a hefty valuation. >> yeah. and has for a long time. i remember a year ago, to the date, and the morning after and going on squawk box and saying i think shares were popping after the quarter. and trading at $75 a share and certainly overvalued then and i think it is overvalues then. and the only way you can justify
4:34 pm
owning shares is for the comparable sales momentum. for sales to actually not only exceed estimates but crush them. and it is right now trading at over i think 2 1/2 times over the highest growth comparable pierce. >> and and jack moore up the street speaking about shake shack. >> i thought you did. why the premium? just a danny meyer premium? why is this so overvalued in so many people's eyes? >> i think for one, new york city based. and i think that brand carries a lot of the investor base from new york city. >> everyone loves the burger. >> everyone loves the burger. i love the burger. i think my weight loss has been on not eating the burger. i was eating the burger twice a week, i was on that trend. they go to west hollywood, l.a., and initial sales spike is enormous.
4:35 pm
>> and important to realize is these concepts aren't going to, no sustainability to catching on and they are making bets where they are opening 25 scores in i believe south korea and ten stories in tokyo and making these ten-year bets where i think they need to test the market first. raenly starting locally and before they launch and expanded at the story that they ensured that they understood their customer base. i don't think they understand their customer base and as a result we saw them and growing stores and around a 0% clip and
4:36 pm
that is the only way they are growing revenues and modestly through the comparable sales but you got have momentum in this business to keep up with the 70-time valuation. >> and new stuff on the shelf answers stuff you like better than shake shack? >> paenera. >> and i would go with them there and also say jack in the box and because of what they are doing right now. seven sonic, i like sonic a lot too. and again, i see a lot more growth because they have the money, because they've expanded the brand out there. and it is not just a hot thing of the moment. and pokemon go is hot right now, too. and again, i think these burgers and shakes are very desirable. but are they desirable time and time again? after you've had it. for some new yorkers the answer is yes. for another people to justify this valuation, i say the answer is no. >> still we should point out that sales came in at $64 million. i can't do the calculation but it's more than 30% revenue growth.
4:37 pm
not the 75% where we were this time last year but find a restaurant that's growing that fast. >> they are growing new stores though. i think that's carrying a lot of revenue growth is adding new stores at a clip that i think is unmanageable and so i think the revenue growth and you also see that average monthly sales of a certain store, average annual sales comes down and hits a peak immediately within the first month and goes down consistently across every store that it lacks down by around 50 to 60% over the next 6 to 12 months. so there is a spike when they open a store and then the decline that is consistent. they need to show momentum in order to justify anything close to the premium they're getting. >> all right, jack. good to see you. may the honeymoon continue. may it last as long as shake shack's. >> and comparables in there. >> he may be eating shake shack tonight and you didn't know it. more on the race for the white house coming up.
4:38 pm
hillary clinton facing new e-mail controversies and her gop counterpart donald trump once again attempting to clarify some of the highly charged comments he made yesterday about the second amendment and his presidential rival. >> and one of the top young golfers on the pga tour. and he hits the driving range with bill. as you can see up next we find out who gave whom advice and why the sport is having trouble attracting younger golfers these days. back after this on "closing bell." where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
4:39 pm
4:40 pm
4:41 pm
23-year-old justin thomas one of the fastest rising stars in golf. somebody else shot a 58. i had the chance to hit the driving range with justin and we talked about his game and the business of golf and why it is suffering and yes even badly needed tips from him. >> first of all, sunday, and you shoot a 62 and nobody is talking about that. how did that make you feel? >> honestly, fine. worked out well for me. and i was very pleased as my round and there is not many days where history is made quite like
4:42 pm
that. >> jack nicholas told us a few months ago on the program that golf is stagnant in the united states, as a business. it is doing well overseaes. asia and south america and everywhere but here is it just too hard or what is going on? is your generation just not playing the game? >> hard to say. because it is a sport i feel like people either love it or hate it. not having tiger is a lot bigger difference than people think. he moves a needle pretty big. and i grew up watching him and idolizing him and i think he is a the big reason why i am where i am today. >> all right. tell the old man what he doing wrong here, okay? >> that's pretty good. the ball position is good. i could even see from here your feet were open. >> i was too far -- >> they were aiming too far right. >> my biggest problem, i just don't hit it far enough. >> i will show you how to lift weights. and you've got that. but do you think you could put it over the -- >> and i'll try.
4:43 pm
>> how about we swing you over and see if anyone can tell the difference between the swings. >> i'm close. i'm close. >> and to have such a great game growing up and coming to proes with this. and every parent, every child what they need to do to get their kid or if a kid asks what they need to do to go to the next level, it is a short game. especially putting. and this is how you make the money. >> bhats your tip on putting? same full swing. make sure everything is square. for your feet. and to your hips. to your chest. elbows. get everything square and see going down the line. and get the tempo right. >> see. >> that is too hard.
4:44 pm
>> and that keeps you from 5 9 e there. >> what do you think about golf back in the olympics? >> it is -- >> it hasn't been in our lifetime. >> now that i have the opportunity to make a team down the road that would be awesome. watching ceremonies and talking to ricky and people there, just how cool that had to have been and watching it on v and being able to be suited up with everyone and all of the other athletes and that would be one of the -- >> you're an ambassador for citi, right? >> yes. allows people to have access to events and music events or sporting events and such as pga tour events. and they will have tents set up at the golf course. and hopefully watch me make birdies if i'm coming through there. and it is an awesome program. >> about the right speed. look at that. >> see? >> and it pops out.
4:45 pm
>> see now that is probably when i give the little break over the knee or something like that. >> is there a technique for that by wait? >> no, i'm not a club breaker. some people are but i've never been to break clubs but it is pretty entertaining when you watch some guys do it. >> there was a ball in the hole already. that's why it popped out. >> i was going to say. your little putt-putt was better than his. >> he is a ryder cup hopeful, by wait. justin thomas, only 23. best friends with ricky fowler who is down in rio. i know he aspires to go to the olympics. but this is an up and comer definitely on the pga tour. >> i thought it was interesting, when you asked him why are not a lot of young people drawn to the sport? he pointed to tiger woods. the tact that they need a hero, a star. you just got that announcement that nike is pulling out of its golf equipment. >> and golf smith is filing
4:46 pm
chapter 11. golf is suffering this in this country. except underarmor. >> and underarmor sticking with their clothes. not with the shoes or clubs. but with the clothes. >> details for us, seema? >> hi, sarah. chesapeake energy is moving after hours. company exiting its barnett shale business. assets to be acquired by first reserve. it is a move that could help the companies bottom line in fact chesapeake energy sees the deal helping its operating income by 200 to $300 million from 2016 to 2019. over all the company cutting expenses and that's why we're looking at the stock. by 2%. i should point out it was up by as much as 6% in extended trade. sarah and bill? >> still down 44% over the last year. seema, thank you. dr. j, comment?
4:47 pm
>> there's been a lot of speculation about this name, what they may or may not do. 6 or 8 will% pop in after hours and giving almost all of it back immediately. i think it'll sort itself out tomorrow and as we get more details of the kind seema just provided. but this is a good deal for close peek going forward it appears. >> all right. we will take a break here. >> yeah. and talk about hillary clinton's e-mail problems. and donald trump's alleged misconstrued words. old stories? >> not really apparently. both candidates continuing to dogged by new developments of these old problems. just har wood has the latest from the campaign trail when we come back. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here.
4:48 pm
get up to a $5,000 bonus on select audi models.
4:49 pm
4:50 pm
hillary clinton's e-mail answers donald trump's remarks on the second eye mendment from both campaigns under pressure today. our chief washington correspondent john harwood details. and john both candidates questioning each other's fitness to be president. >> exactly. they didn't agrees their own problems but tle did address the other problems. first of all let's talk about hillary's e-mail questiones. revelations of new e-mails subjecting potential conflict of interest between the work of the clinton foundation and hillary clinton's work as secretary of state. this is one example, an e-mail from doug band and an official from close aides to hillary clinton asking to get a healtwe donor in contact with a substance person in lebanon. saying it was very important that it happen. the substance person saying it didn't happen but there was potential corruption. >> this is big stuff.
4:51 pm
pay for play. it is illegal. we will see what happens with it, folks. but it is very serious stuff. very, very serious. >> now donald trump did not address the controversy over his remarks about second amendment people taking action in response to hoipt's political success. he did say that the press is known for taking things that aren't really a story and making them a big story. that seemed an indirect illusion. saying the second amendment is under siege but hillary clinton campaigning in des moines iowa with a different taken a saying this is more evidence and donald trump shouldn't be president. >> words matter, my friends. and if you are running to be president or you are president of the united states, words can have tremendous consequences. yesterday we witnessed the latest in a long line of casual
4:52 pm
comments from donald trump that cross the line. >> now, of these two sets of problems, donald trump's are worse because he is trailing in the polls and battle ground states and republicans are keshed about the state of his candidacy. paul ryan in winning his primary last night said it was important for donald trump to clear up quickly what he meant. donald trump hasn't done that yet but we did learn that secret service has spoken to donald trump about those comments. no word on exactly what they instructed him but we are told that donald trump's campaign told the secret service he did not intend to insight violence, guys. >> i don't mean to minimize any of this because it is all very important and part of the process but i'm just desperate to get to election day. i don't know about you, but everyday is just -- >> i think a lot of people are -- >> do we need another 8 will 0 days or whatever we're up to
4:53 pm
right now? >> i have a question. >> i can tell you this, that clinton campaign would like for election day to be here now because the saying in politics is, if you have the votes, call the vote. and hillary clinton is leading right now. of course we will wait and see whether debates in september and october or other news developments change the alignment of forces. >> which begs the question, we were talking about this earlier today that some measurements, some polls, donald trump is trailing by 150 points in some polls. has anyone come back from that kind of a deficit in an election like this? do you know? >> in some past elections, bigger gaps than this narrowed. for example, 1976 coming out of the democratic convention, jimmy carter was leading ford by 30 point in the race for the white house. just after water gate rich richard nixon resigned. it ended up being a close election. we have seen movement in the past. bob dole made gains at the end of his campaign.
4:54 pm
george h.w. bush in 1992 closed late on bill clinton but a move of the magnitude that donald trump would need both nationally and battle ground states we have not seen that in the last few electiones. >> and i should know we have not really seen the election uncertainty evident in the markets. right now either. probably following the polls. >> well, i think the reason is that the markets don't feel a lot of uncertainty. >> and with hillary clinton's odds of winning this campaign in november, are very high. >> john, thank you. >> it feels an awful lot like brexit though. >> betting odds were wrong. >> yeah. betting odds were wrong because they were following elites and following new york city. and washington, d.c. and in great britain of course it was london. so when the rest of the country gets hold then we will see. >> yes, we will. >> all right. by the way, be sure to tune into
4:55 pm
squawk box tomorrow morning. donald trump will be on and talking about his economic plan and campaign's latest controversy. that's tomorrow 7:00 a.m. eastern time right after worldwide exchange. >> thank you. >> you're welcome. >> cnbc will be switching over to special olympic coverage of the 2016 games. >> but first we hear from a group of athletes in rio on the biggest challenges they have faced getting to the games, after the break.
4:56 pm
4:57 pm
♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here.
4:58 pm
the athletes in the rio games the best in the world. and they were asked about the challenges on the road to rio. watch. ♪ ♪ ♪ >> you know what, i just tend to forget all the hurdles. that's why i think i keep going everyday. >> i have pain in my shoulders since 2013. so it was a little difficult to train like this. but i keep going. >> three weeks ago, i say okay, start from the beginning and we do it again. so that's the most challenging point. >> biggest challenge i would say is definitely all mental. i feel like if you put your mind
4:59 pm
to it, can you do it. but you have to really be set and like you know, your capabilities. >> and one lady had pain in her shoulders since 2013. and she is in synchronized swimming. you know pain, playing for the vikings -- >> unfortunately. >> you know this kind of achievement in athletics. >> so proud of them. and their focus must be incredible. i love watching them. i'm one of those glued to the screen at flight. >> 28 medals on top. still a lot of exciting games. more swimming. more gymnastic. >> more beach volley ball. why didn't you mention that one? >> excuse me, beach volley ball. and rugby. >> such a fast game. >> and only take 30 minutes to play? >> love it. >> and the most popular form of
5:00 pm
rugby as it's expanded. >> exactly. nice to see you. >> see you tomorrow. >> see you tomorrow at 5:00 a.m. >> 5:00 a.m. as a matter of fact. that does it for "closing bell." olympic coverage does begin right now. see you tomorrow. >> the third of our rugby sevens quarterfinal is under way. the fourth seed great britain and seventh seed argentina. great britain taking a hit into the jaw. great britain in red. almost a little more red. >> we have seen this before. you come out and you make the first hit sometimes and


info Stream Only

Uploaded by TV Archive on