tv Closing Bell CNBC September 1, 2016 3:00pm-5:01pm EDT
mel, one college football game. who are you going do see? quick! >> battle of bristol. >> alabama. what? what are you talking about? harvard-yale game? >> go to break. >> go to break? now you're producing. >> bossy, bossy. too bad you're back tomorrow. thank you for watching "power lunch." >> "closing bell" starts right now. note t ♪ he's back! i love that. welcome to the "closing bell," everybody. you are not down here, bill. >> no. i'm almost back. >> not fully up to speed yet. welcome back. i'll kelly evans doung here at the new york stock exchange and post 9. >> i'm bill griffeth at cbc headquarters and on that other show here on pbs. i'm looking forward to that very much. we have been showing you this chart it seems forever but it goes back to the month of june down to the brexit selloff. this is the dow jones industrial
average. we had the big rally comeback rally and it's been going sideways now. it's going to be 39 days today trading days when we have failed to see the dow move 1% up or down. it's happened again today. so as we kick off the month of september, kelly, after the post-brexit rally, we wonder if we get any volatility the month, right? automakers are probably happy august is ending. sales coming in weak. we'll look at how long this downturn could last. oil is hit today down more than 8% over the last week. but if you think it's a buying opportunity, think again. we have somebody who says things are just going to get worse for the energy patch. >> well, here's worse for you. samsung's new phones are on fire. but not in a good way. we told you last week sales were much stronger than expected but issues are arising this week with reports of the batteries catching fire.
delays now in getting the phones in people's hands. we have pictures and the impact coming up. >> horrible, horrible timing with the iphone 7 comes out next wednesday. but let's start with the auto sales. apparently cooling off in august. we have phil lebeau with more on the story for us right now. phil? >> bill, we knew that august would be slower compared to august last year. they also had labor day included in august of last year and when you take a look at the four largest automakers in the u.s., all of them reported -- not all of them. three of the four with negative sales for the month of august and most of the time they were in line with expectations. the one exception here being fiat chrysler. should be an up and not a down arrow. up 3% last month. what everybody's waiting on is the monthly sales rate for august. and the expectation right now is that we're likely going to see a sales rate of 16.9 million vehicles if that's the kate,
coming in around 16.9, 17 million, it below where we have seen the sales pace most of the year and tough to think that we're going to hit 17.5 million for annual sales. by the way, that was the record set last year. quickly want to talk about tesla because shares of tesla under pressure for most of the day. look at the move down today. a lot of focus on the cash crunch outlined by us and others over the last 24 hours. once the s4 filing came yesterday. they ended the second quarter with $3.25 billion in cash. throw in the expenses that they have either taken care of will be taking care of in the second half, that's the planned cap ex pend churs there ramping up production and cash cushion is $4 million. that's the expectation as of right now and why tesla yesterday in that s-4 filing said it needs to do a capital raise either in the equity or the debt markets or a combination of both. and now you see investors
looking at that saying, how much is our shares going to be dilluted? that's why shares are under pressure today. >> phil, stay there. let's bring in rebecca lindlan. i guess there's what's happened broadly with auto sales and tesla. what about the stepback in august more broadly here? >> well, i think one thing to remember is that even though we're looking at the 16.9 million to 17 million unit range as phil mentioned, that's a fantastic range when you consider where we were just a couple of years ago. so i do think that we need to think about this in perspective. you know, not even michael phelps sets a world record every time he's in the pool. and so, i think that we need to be pretty happy about this 16.9 million to 17 million but it was below expectations as well. >> let's focus on tesla. is there a reason to believe
they won't have a successful capital raise they badly need right now? >> well, i mean, you talk about bad timing with the space-x explosion. >> right. >> i mean, you know, in a day when elon really could have used some good news instead he got some really bad news, fortunately nobody was hurt. but their balance sheet kind of exploded again, as well. so i think that, you know, and i use this example before, with alan malaly in ford, he raised capital. because it's a -- you know, building automobiles is a capital intensive undertaking. and when you look at all of the different areas that elon is involved in, they're all very, very capital intensive. i think it depends on investor tolerance, really. >> that's the key issue, phil. up until now, tesla investors continue to fund this company. >> right. >> you know, at what point do they start to sour on the
prospe prospects? >> it's too hard to predict. any time we see a sales report or an earnings report of tesla, if they have disappointed or if they have reset their goals or brought down expectations, we've always heard people say, especially the bears say, a-ha, this is it, this is when everybody gets out of tesla and yet, what was the low this year? $180? still slightly above $200 at this point. it seems as if as jim cramer says, this is a cold stock and takes something before finally people say i don't want to be a part of tesla. i wish i could predict and say it's going to take them doing x, y and z but we have seen time and again to restate expectations or if they disappoint, there may be a slight hit to the stock and then chemos coming back. >> that's the thing. you know, you're investing in elon musk coming down to it. >> correct. >> includes solarcity and
space-x. there may be problems for tesla to raise the capital because of what happened to space-x but they're two different companies right now. right? >> they are. and when you see what happened with the model 3, and i have full disclosure, $1,000 deposit on a model 3. probably 355,000 or something. you know, when people had the opportunity to buy into the dream, they did it. they came in droves. and so, i think that we are still seeing people believing in what elon musk is saying. and giving up those dreams is what people don't want to let go. and that's why we see the stock continuing to have this kind of resiliency. >> more like the lyrics to a popular song than a story about investing in cash flows. just want to hang on. >> are you going to sing that song for us, now, kelly? >> no. might be inventing it on the spot. but they all sound like that. thank you both. >> i'll handle the tune. you handle the lyrics. thanks, folks. let's get to the "closing
bell" exchange for this thursday. we have contributor heather hughes, steven garfoyle and rick santelli from chicago, as well. sarge, my friend, it is like waiting for gadeau. what gets the market to move one way or the other and which way will it be? >> we need certainty and won't get certainty. what you saw today with the ism manufacturing number is a huge disappointment. we have strong july industrial production and now this throws august into doubt. we see weak auto sales for the month which is going to probably force at least a weak headline retail numbers for august and the second in a row. an they're going to get that number before the fmoc decision on the 21st. so, yeah. tomorrow is important but it's not the end-all. not the end of the game. i think a 200,000 individual
print in the morning certainly forces the issue somewhat. but if they're in somewhere between 150 and 180, the consensus, 150 being the whispers, i don't think that forces the issue. i think that the uncertainty will go on. now, i'm not going to go in debt fear because there are other guests. >> make a bet. let's do it! >> other central banks are players and involved in markets. >> heather, what are you looking senate. >> yeah. i think that september, we're about to -- we may embark on more volatility as bill was saying at the top of the hour there so buckle up. not just the jobs data tomorrow but the first presidential campaign debate, opec has a meeting at the end of the month, as well. almost every day some of the central banks around the world come out and discuss the rate moves one way or the other. but september is usually a very volatile month and historically one of the negative months of the year since going back to
1928. but i would mention this is obviously one of the most unloved bull markets of all time and not to say markets can't pull back 10% or 15% from here and then rally going forward. but cash levels at all-time highs and portfolio sheets balance sheets and they end in euphor euphoria. we are not seeing that stock market bubble where, you know, uber driver is giving you stock tips right now. >> you, too? >> yes. not yet. >> rick, you know, sarge brought up the point of the ism report this morning. it was aufl. one of the most important readings, even though it's a small part, it slips into contraction for the u.s. what are we supposed to make of that? >> well, it is not that the market is as heather referred to is unloved but mistrusted and for very good reason. you know, today, after that weak ism, it was kind of a reversal of fundamentals occurred and
this movie didn't star jeremy irons. bad is bad's half life moved from plutonium back to a fly. why do you think the interest rate complex reversed? the dollar reversed. maybe more importantly, i'm looking up at the stock market. down a bit and down a whole lot more. we're back to the same old dynamic. you know, ism could be the pick they need no matter what happens tomorrow. they'll always find something because an economy 1.5% to 2% is going to have some fits an enstarts and that's exactly what we're seeing. once again, ism tells us that the inventory builds look spectacular and when customers don't buy them, it's not as spectacular. sub-50. new orders were not good. sarge is right. look at the july industrial production capacity utilization. this is the economy we have. it really i think fits what the fed needs at any given time. they don't have confidence in the marketplace. but they'll have plenty of
numbers to find so as when they don't want to forge ahead and i think that's why the markets are trading the way they are. >> it seems like this bull verse bear tug of war debate goes on. they have the data weak today to point fingers at and the dual mandate system is fulfilled and i think that's the argument for in the case to increase rates. you know, sure, mildly interested in the excuse they'll come up with but i think the only excuse is strong dollar. >> yeah. well, they can get neumann dates the way we change shirts. that's the problem. >> sarge, where are you seeing opportunity right now? >> i'm long the tech space and staying long the tech space. been good for a quarter and i don't see any reason it wouldn't work. the financial space is interesting. all right? ex the reits. take a measured shot here in case they move on interest rates. maybe something like a call bull spread to play. something where you have limited
downside and limited upside and you can capture something of an upward move in the space without exposing yourself too much. >> financials have already had a move off the lows. 15% i believe in the past month or so and in terms of valuation, he's right that financials may appear undervalued here, you know, real 2i6 lative to the re the market. if you believe that the fed hikes and even if it doesn't happen in september, it still makes sense, a play on the financials if it occurred in december. >> good to see you all, as always. thank you for your thoughts. we'll see you later. >> welcome back, bill! >> thank you, rick. we have little more than 45 minutes to go here in markets. still are lower for the dow and the s&p. dow down 27. s&p nearly 6 and the nasdaq is marginally in positive territory. >> and we just make big news of all of that. because it's been like that for almost 40 days. samsung's phones may be too
hot to handle with reports surfacing of exploding batteries. we'll discuss the plight into the face of apple's new phone due out next week, as well. after the break. also ahead, donald trump humming slightly different tunes of last night in arizona and yesterday afternoon in mexico. don't miss our trump versus trump breakdown and plus reaction of a former u.s. ambassador to mexico, you're watching cnbc. ♪ ok, so you launched your bank's app. now what? how will you keep up with the w mands of today's digital economy? the fact is: some believe they won't need a traditiol bank wn the road, so acognizan we're lping banking d nanciaserves be untditionalgital, anreimagine what theank of the future can be. our clies can now leverage predict their fincial needs
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welcome back. shares of walmart pacing the dow. they're up nearly 2% and this reportedly on news that the retail giant is planning to cut 7,000 back office jobs around the country over the coming months. most of them reportedly in accounting and invoicing positions. walmart says it will use cash recycler machines to count money. >> they also are starting the christmas lay-away plan tomorrow. two weeks early. merry christmas, kelly. >> thank you. still too early. >> way too early. a new announcement of the
zika virus. when's the story there, john? >> reporter: bill, i just got out of a briefing here at hhs with secretary burrwell and gave the latest numbers on zika. more than 2,700 confirmed in the continental united states, more than 14,000 in u.s. territories, the vast majority of those in puerto rico. they include 624 pregnant women in the continental united states. 971 pregnant women in u.s. territories. those are the population of greatest concern. now, this is part of the administration's effort to press congress to pass more than a billion and a half dollars in zika funding which congress has not acted on. important to point out that the zika money, the failure of congress to act, has so far not slowed down the research on the vaccine because hhs has been able to shift money from other
accounts but secretary burwell said that's going to become much more difficult on the limited budget authority they will have when the fiscal year runs out if congress didn't pass a budget. >> all right. john harwood in washington outside hhs, thank you. see you later. samsung has stopped shipments of the latest smartphone, galaxy note 7. the move reportedly brought on over safety concerns. civil videos and images of charred phones like that one have been surfacing online. this one by the way posted on youtube by ariel gonzalez shows the reported aftermath where the battery started burning after he charged it. using a samsung charger, by the way. >> this is coming at a time when apple about a week away from launching the latest version of the iphone. joining us with the take on this matter, dan ackerman and brian white here at post 9 from drexel home ill on the. brian, we were saying the buzz
around the phone was great and for apple, quieter. not going to be maybe dazzling us until next time around. does this change the narrative now? >> well, definitely provides good fodder next week at the iphone 7 event and i think it will help on the iphone 7 plus because the note is a higher end product, for sure. >> dan, what do you make of it? you're a fan of the note 7? a lot of people, great reviews, how much of a black eye will this be with the battery problem? >> it's one phone everyone is buzzing about this year. i have one right here. the screen goes right to the edge. forward looking design. you couldn't write this better. samsung has a phone that everyone is very excited about. comes out about two weeks before apple has a phone that people are not that excited about because we know the features already. and then as soon as it seems like everyone's going, i guess i'll get the note 7 instead, they start catching on fire. you could not have a worst possible timing.
>> just like reporting on tesla catches fire and you say there's a lot of automobiles catching fire. we don't report on it. you tend to overreport on ones that are more high profile. is that happening here, brian, as well? >> definitely happening. i think one of the issues that samsung has, there's always been a knock on quality. and i think this kind of feeds into that narrative. what does apple say? our norstar is making high quality, great products and feeds into what apple does. >> same time, apple just got involved a lawsuit this week and people complaining of screen defects on the 6s plus phone and antenna-gate, a phone not designed well and with the samsung fires, it is visual. people take a picture, on youtube, a video. that spreads virally very quickly. a couple of cases can have a huge impact. >> dan, let me bring up kelly's question of before.
are we overdoing this by overmagnifying a few incidents when you consider the number of phoneless out there right now? >> i'd say considering the phone just shipped two weeks ago and already at least five or six cases of people talking about fires and samsung said they're not -- stopping shipments in south korea and may spread throughout the world, i don't think we're making too much of it because clearly the company is reacting to it very quickly saying we won't ship them until we see what happens. >> a lot depends on how quickly to move the production process along. meantime, ahead of the event next week, you are still positive and bullish on apple. >> yeah. look at apple here. the jason bourne of the tech world. china government shut down the itunes movies and books. eu going after them on taxes. short seller chasing them all year and similar to 2013. i think this is a bottoming process. you have iphone bottomed in the march quarter. sales and profit in the june quarter.
a stock at less than nine times x-cash. >> here's the question. we have to go here. i spent the week on the beach with a bunch of friends and one of them is dying to get a replace his apple phone and he is wondering, do i buy this one next week that we know what's in there like dan was saying or do i wait for the big one next year, the tenth anniversary? isn't that what people worry about right now? brian? >> there's a lot of people that upgraded, you know, with the iphone 6 in september 2014 and they're up. on contract. so i think there's a nice upgrade cycle, turning to apple to growth. not a game changer but next year it continues so you have a great cycle going for apple. >> what were you going to say, dan? >> yeah. a lot of people wait until next year and stretch it three years especially because the two-year contracts going away and everyone has to pay the street price for the phone now. they're not getting the $200 subsidized prices anymore. >> i'm chuckling about the jason
bourne reference. what does that make samsung? ping me. >> i don't know what it makes samsung but jason always lives and gets stronger. >> thank you both for joining us. we are heading to the close with 37 minutes left in the trading session here. a slight down day for a couple of major averages. dow and s&p. and the nasdaq is virtually unchanged right now. up next, was trumpb consistent? we'll compare what he said about immigration policy last night in arizona to yesterday afternoon in mexico city. and reaction of a former u.s. ambassador to mexico coming up. stay with us. ♪ ♪ ♪ the highly advanced audi a4. ♪
welcome back. las vegas sands and wynn resorts trading higher today. new data showed that gaming revenue in macaw climbed in august. that's the first year over year increase we have seen there in more than two years. thanks to new resorts including one by wynn. a lot of hope they bottomed out there in macau. >> chinese data was higher. interesting. how do donald trump's words on immigration compare? >> john harwood breaks down what he said in arizona last night versus mexico city a few hours before that. john? >> reporter: bill, donald trump has got two imperatives in the race. hold his base and he's got to make it bigger because he's behind.
we saw both of those impulses reflected yesterday when donald trump went to mexico and later spoke in phoenix. first of all, in mexico he met with president pena nieto and said that they were friends, that they were going to work smoothly together and when he was asked whether he was going to make mexico pay for that wall, whether they had discussed that, here's what donald trump said. >> we did discuss the wall. we didn't discuss payment of the wall. that will be for a later date. this was a very preliminary meeting. i think it was an excellent meeting. and we are i think we're very well on our way. >> reporter: now, that quiet tone meant to appeal to swing voters was replaced when he spoke in phoenix talking to his base. here's what he had to say about the wall then. >> we will build a great wall along the southern border. and mexico will pay for the wall. remember.
100%. they don't know yet but they're going to pay for the wall. >> reporter: now, donald trump went on to paint a frightening picture of crime by illegal immigrants. said that we were letting rapists and child molesters into the country, he spoke with parents of people killed by illegal immigrants. that's all the kind of message that got him the republican nomination but it's not one that's likely to win over those swing swroeters and win over hispanics who he needs to do somewhat better with to have a chance to win. now, donald trump if you look at the polls yesterday, fox news came out with a poll showed him narrowing hillary clinton's formerly 10-point lead to 6 points. that is still a substantial lead. he's got work to do and the challenge of mixing both messages is you don't communicate clearly to either side. trying to turn the message and
make it moderate for the general, he has to do it consistently. not for a moment and then switch in the next event, guys. >> all right. john, thank you once again. we'll talk to you later. let's talk more about donald trump's visit to mexico and plans to tackle immigration. joining us is jeffrey davidavo. he is a former ambassador to mexico from president clinton. nice to see you. on one hand, the positive for donald trump were the optics meeting with the head of state and then the other side, the negative, if you will, is the whole controversy about who's going to pay for the wall and whether they talked about it or not. what is your assessment of his trip to mexico? >> i think if he were on the apprentice you would have to say you're fired. he did a very poor job in mexico. on the one side he did get what he wanted which was a photo opportunity. but donald trump's been telling us for year and a half that he's going to get mexico to pay for the wall, renegotiate nafta.
he's going to stop american businesses are going to mexico. these are all topics he should have raised in a respectful fashion with the mexican president. it seems like he didn't do any of them. >> why not? it seemed respectful in the tone yesterday speaking up there with the president of mexico and talked about what great people the mexicans are. >> it's great to be respectful and pleasant. but if you're representing, let's say, representing the united states, or in his case, representing his own political view, then this is the time that you lay it on the table. if you really think you're a great dealmaker, this is the time when you start negotiating the deal. i didn't see any of that. >> i'm curious. your thoughts on this. we all know why donald trump would want to go to mexico but why would president nieto want to meet with donald trump? what's in it for him? >> actually, i think it was a great miscalculation on his
part. what i think he wanted to do, first, he sent the invitation to both mrs. clinton and mr. trump. i hi he was hoping mrs. clinton would say yes. he wound up with trump. also, i think he feels that with all the discussion of mexico in the campaign, he wants to get mexico's side on the table and available to the american public. if you listen carefully to what he said, at the press conference, he presented a really cogent picture of the importance of a friendly mexico to the u.s. but he didn't say it very quewe. it got lost in the scuffle of the translation and overwhelmed by the optics of the event. >> yeah, he's also now saying that he told donald trump that mexico won't pay for a wall and contradicts what we heard yesterday, too. this is a pretty sharp contrast to what happened when mitt romney went abroad in 2012, isn't it? everybody thought donald trump was going to somehow make a fool
of himself, further diminish his poll ratings and yet the opposite seems to be happening here in the last couple of days, ambassador. >> well, look. as i say i think in terms of optics, he got what he wanted. he went to mexico, ate a doughnut, had a cup of coffee, really good photo-op. in terms of demonstrating he's a loader, i think he failed. i can only imagine what happens when he sits down with vladimir putin. >> thank you for your time, sir. appreciate it. >> bye-bye. >> jeffrey davidow, former ambassador to mexico. let's get to a cnbc news update now with sharon epperson. hi, sharon. >> hey there. senate minority leader reid says he and president obama will not permit a stop gap spending bill to kick washington's unfinished budget business into next year as tea party conservatives demand. message in a conference call with reporters. new video coming in from the
space-x falcon ix rocket explosion at the launch site in florida this morning. it was in advance of a planned saturday launch, space-x said there were no injuries but the rocket and payload were lost. dallas police chief david brown announced the retirement effective october 22nd. this after 33 years as a city police officer. brown oversaw the response to a july sniper attack that killed five officers. the world tango championship came to a close in buenos aires last night with a local couple winning the title. they received a $4,000 cash prize and tickets to paris expected to perform. the finals include a couple of italy, brazil and colombia. that's a cnbc news update at this hour. >> how embarrassing for them not to win that. right? >> this is true. >> do you tango, kelly? >> i tried once. it is so hard. you'd think playing sports you
might be coordinated. no. ballroom dancing is a whole other ball game. >> different from lacrosse, that's for sure. thanks, sharon. >> take care. >> see you later. 26 minutes left in the -- move on. >> it is. bill, have you guyed? do you ballroom dancing? >> no, no. >> it is so hard. you have to be in such great shape. it's amazing. >> so i hear. the dow and the s&p are negative. leading trader tells us what he's watching as we head toward the close of trade here. >> the earnings parade after the bell. we have lululemon and ambarella reporting. stay tuned. "closing bell" will be right back.
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we have a final tally on auto sales for last month. phil lebeau back again. how did they do, phil? >> fell short of expectations. 16.98 million, that was the final tally for the rate of sales for last month. that's according to auto data. remember, many people were expecting closer to 17.1 million or 17.2 million. again, the sales rate for august, 16.98 million vehicles. guys, that is the third month of 2016 where the sales rate below
17 million vehicles. back to you. >> all right. phil, thank you very much. kelly? >> thank you guys. i'm on the floor -- near the floor with mark newton to talk about what cars run on which is oil but energy actually a better performing sector in august. you are saying watch out now. >> it is the best performing sector in august and one of the worst performing sector over three months and interesting talking about momentum and a loss of momentum and look at energy. this is the oih versus the s&p and look in the last couple of weeks and what's happened as crude accelerated to the downside with wti, energy followed and they have gradually started to roll over and my thinking is particularly tomorrow you get a strong report on the dollar, commodities started to weaken and could hurt crude further to the downside and so, you know, with production being high, high storage, crude gradually starting to accelerate today,
down over 3% today, my thinking is energy is a place to avoid at least in the near term because probably going to see further downside in the sector. >> might be closer to the beginning than the end of the move for the time being. >> i think that's right. >> thank you for joining us here. >> thank you. >> bill? we have a news alert on hillary clinton. maybe you saw the graphic. the campaign having the best fund-raisinging month in august coming in at $143 million for her campaign and the democratic party. that just out. we are taking a break here with 20 minutes left in the trading session. another day, this is the 39th straight trading day, where the dow and the s&p have failed to see a 1% move either up or down. we're down just 16 points on the industrial average right now. coming up, amazon quietly pulling the plug on its partnership with wells fargo on a student loan program that was announced just six weeks ago. we'll take a look at what may have been behind that move. but first, jim cramer joining us to talk about the
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it will be 15 years a week from sunday for the 9/11 attacks, the new world trade center is open for business. 1 world trade more than just a big, new office building. and for many reasons. it had to be one of the safest. watch this. >> the unique safety features inside 1 world trade are a key reason it cost $3.9 billion. $2 billion more than any other skyscraper in the world. it was designed precisely to survive a 9/11-type attack which makes it both a shield and a bull's eye. >> the world trade center remains a target. remains a target for the al qaeda groups or isis. >> reporter: don borelli spent 25 years with the fbi and helped lead new york city's
anti-terrorism task force after 9/11. he's now a nbc news analyst. do you think there have been any credible threats even during the time of the building of this? >> lots. >> lots? >> i would say lots. >> that is from the new cnbc documentary airing tonight at 10:00 p.m. eastern time. it's hosted by our own jim cramer and been getting sensational reviews. >> thank you. >> you did a great job with this one here. >> thank you. >> we were just talking about this. we worked down there every day. you were afraid of that building for a while. >> absolutely. i even -- there was a moment when i looked at a plane, the reflection on the building. because it's beautiful. i went like this. just -- we all remember that day. it happened to be a beautiful day. we remember that -- >> yes. >> and by -- i was fearful. but by the end of the documentary and took a long time to do, i was just too fearful. not saying that -- to be glib about it. remember, it is a cemetery, too, but i felt as hallow ground and also felt that if told that we
were to work there, i would say, of course. i would not have any hesitation. >> that's what i was wondering, jim. you know, would the people now getting office space in the building, how do they feel about it? is it patriotic? try not to think about it? >> these are really -- you gave the gamut. some people feel that literally it's a statement of resilience and other people feel like boy is it convenient next to the port authority. other people each day find themselves looking at the reflecting pools. and trying to catch their breath. so you've got all people and i'm sure you have people -- i didn't speak to them who just wouldn't do it. the building has lots of space and maybe you believe that's because there's not enough business in new york or there's companies that don't want their employees don't want to be there. it is a mixed picture. that's why i urge people to go down there yourself. make your own mind up about how
you feel. i would work there. >> it's not a look back. this is a look at when's going on now and to the future. and let's face it. battery park city, that whole neighborhood has been revitalized in this time. >> yes. but sam time i told my wife, we have go down and look at the stores. i can't bear to listen to you. the idea that there's a short hills mall next to -- i finally caught myself. i said, look. i'm not a salesman for this but it's a rebirth and to not acknowledge a rebirth is literally have your head in the sand. it is different. >> what about the cost? you have mentioned there's a bunch of different things going on there. we have the office space. there's a lot of other things happening, the development was a huge project. you know, is it working? and is it done? are we now looking at effectively what that site is going to be looking like for some time? >> i did think that the port
authority oculus too expensive. port authority has structure $4 billion. seemed like a lot. i have to tell you in terms of security, i was so impressed and i also feel that security costs a lot of money. >> right. >> i happen to visit the coliseum with my daughter at the earlier in the month and just -- in august. and we were talking about how much the coliseum must have cost and i mentioned the documentary. she said, no one's thinking about the kst. >> the real coliseum. >> the real coliseum. they took the marble for the vatican. recycled it. it holds up. it was about the fact that the oculus is italian marble and so gorgeous and expensive you find yourself scratching your head about that money better used elsewhere? >> well, we were looking very much forward to the document ri. >> thank you, bill. thank you. thank you, kelly. >> kelly? >> thank you, guys. jim, appreciate your joining us. you can catch much more about the revival in lower manhattan tonight in the original
documentary reported by jim, "ground zero rising: freedom versus fear" tonight at 10:00 p.m. eastern. we have just over ten minutes left to go in the session here. a look at this. dow trying to make a comeback down 2 points. nasdaq now up 7. our next guest prefers small cap over large cap stocks and specific names to recite for us when we come back after the break.
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about eight minutes left in the trading session. joining us is mike balkin portfolio co-manager of the william blair small cap growth fund and you are here to make the case for a small caps. is that a defensive play in this particular cycle right now where the expectations is that the fed has to start raising rates, dollar has to move higher and small caps tend to be immune to all of that? >> i wouldn't necessarily call it a defensive play, bill. small caps have underperformed large caps for the better part of the decade and i think the timing is right for small caps to do good from here. rates will go up and in the past when they have, small caps stocks performed quite well. >> you have actually got something of a stock old-fashioned stock picking approach going on here so you have got a couple of names.
some of the bigger ones include universal electronics, for example. why do you like that company and some of the others? >> we like universal electronics because they're the worldwide leader in remote control technology. they have about 35% of the world's remotes. powered by them and what we like is they have the next generation technology, you know, comcast, xfinity, talking into the remote to take you to the station. really exciting stuff. they get two to three times the content dollar amount on each of the new remotes. >> why have they underperformed? the trend tends to last for a while. either up or down. why has it been an underperforming period do you think for the small caps? >> bill, i think it's underperforming with a flight to safety over the last decade. people have gone into large cap stocks. dividend paying stocks. anything where they think that they can get a yield. and i think that that's been to the detriment of small caps and
i think that we have seen historically, the small caps stocks do well. >> you like nknew tri systems ad perhaps less so has an investment. >> it is real lay interesting company. they brought in new management two to three years ago. said that the product doesn't taste well and reformulated it. product is much better. they're able to deliver great value to the customer at their home and actually they're testing something atwal mart right now where you're able to buy a full day's worth of meals under $12. under 780 calories. >> these are some smaller places to look. in a market. thank you so much for joining us, mike. >> thanks, mike. >> thank you. appreciate it. we'll take a break here with the dow suddenly moving into positive territory. we had the closing countdown coming your way in a moment here. >> art cashin said there's 500 million to buy on the bell.
perhaps seeing that working through the system here. >> i think so. after the bell, maybe donald trump's personal mexican standoff. the nominee's immigration speech in arizona had a different tone than the remarks yesterday afternoon in mexico. our resident political power houses will debate what they heard. at'sood thin but it doe't cover everything. only about0% of yo part b medal expenses. so consian ap mecaou.t suppment ins plan,ng. ind by unitedheahcare surance coany. like all standardidicare supplement insurancela, ind ey could save you in of-cketedical costs ca today to reest a freeision id
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dominic chu joins me from the floor of the new york stock exchange. how are you, bud? >> i'm great. and, bill, so good to have you back. we missed you. >> nice the see you. >> i know you've been taking time off. big book. i have to read it. >> well, we'll be talking all about this book next week so if anybody's hearing rumors, they're true. wait until next week when it comes out on tuesday. let's look at these charts and you tell me if you can say when the ism number came out this morning. here's the dow first. >> yes. >> this is the intraday. >> you can see that leg lower, right? >> at 10:00. more pronounced when you go to the dollar index. watch this. 10:00 a.m. is when that weak ism number came out. it was a waterfall at that point. right? >> yes. don't go chasing waterfalls, right? >> here's the 10-year yield. the market really acting dovish when this number came out so yields also fell just as the dollar fell. and it was a weak day for the price of oil anyway. wti and mark newton little while
ago saying he thinks that the down swing in the market is not fin initialled yet for wti right now, dom. >> there are quite a few traders out there on the oil side or the equity side feeling as though this move lower in energy could have legs. nobody knows for certain. still, it feels heavy to traders and certainly one to watch. i would point out on the heels of your chart, on oil prices, i don't think i canning for position for the worst performing sector today, bill, none other than energy stocks a. huge focus. looking at the energy etf, the spdr etf, that particular sector was lower today point 5% and see trying to make a move higher today. dip buyers are out there. i would point out, bill, i'm watching one particular stock. it is nike. because it's the only s&p 500 stock that's gained more than 7% on average for the last 20 septembers and it's a positive
trade 80% of the time. >> wow. >> who knows if it will repeat? a stock to watch and nike was positive today. >> we'll do that. thanks, dom. don't forget the jobs report tomorrow. that will will be a market mover. more earnings coming your way this second hour of the "closing bell" with kelly evans. i'll see you later, kelly. thank you, bill. welcome to the "closing bell," everybody. i'll kelly evans. let's see how we go out on wall street today. the first trading day of september. it was marked with actually disappointing news in terms of data today that ism number real disappointment slipping in contraction territory but dow managing to move higher. despite or maybe because of that and talking about that in a moment. up 17 points there. 18,418. the s&p starting in the red down and the nasdaq up 14. clearly the outperformer today. it's another busy hour for
earnings. aditi roy is covering lululemon for us. josh lipton waiting for a provider ambarella and seema mody with wesson. commentator and columnist mike santoli is here and john najarian and brian kelly joins us, as well. mike, a very exciting day in terms of the data but we learned a lot of surprising things. i mean, the british data couldn't have been better. the usda that a big disappointment. china was okay on the manufacturing side. when's the message here? seems like markets trying to figure it out. >> trying to digest the idea that the usda that had a stutter step today at minimum with the auto sales disappointing and the ism this morning. i don't think people made too much of it. not primary indicators but all prepared and geared up for this
cyclical upswing globally and got it in the rest of the world. the market had an interesting dynamic and didn't sell off after the disappointing manufacturing data. you did have a lot of those rate hike plays back away. people said, okay, this diminishes the chances of a september rate hike. on the other hand, we came right back. an intraday rally, back to the flat line. i think because the market likes to be in a neutral condition before a big news item like the jobs number tomorrow. >> it couldn't be, you know -- there's a lot at stake on this number and always true and seems like the fed is or was ready to hike and now disappointment on the ism number says that the bar is 200,000 to think about moving in september? >> and i think to mike's points, all of which i agreed with, i think the real issue is they've got 20-some odd days before they have to make the decision and this is not going to be made on tomorrow's number. if the number was zero tomorrow, as far as jobs created, they
still wouldn't take september completely off the table as far as the fed is concerned. >> i don't know about that. look what happened when it came in disappointing earlier this summer and didn't hike. >> true. i've been one of the people all along saying i didn't think they'd hike until december and saying that. december, december, december. now, each time we get some one or two good reports in a row, in particular employment, then people start jumping on the side saying, this is it. >> yeah. >> they have to go. they don't have to go. the inflation numbers just aren't there with what they measure. with what you and i feel, the inflation numbers have been there for years. it's just a question of when do they recognize it? >> brian, some of the factors of the last few days, including the financials reversed today. the dollar moved lower. the gold miners up nicely. what kind of trade do people put on now? back to the fed backing off? >> well, i think you have to think that. i mean, i actually think the ism
number is incredibly important. nobody tends to look at it. it's very accurate, as well, coming to forecasting recession. so when you're below 50 on the headline number, that's not a great sign. the auto sales were terrible. so what do you do? maybe the fed hikes. i don't know. but i think you buy bonds at this point in time because on that ism number bonds should have rallied a heck of a lot more and didn't. saz for stocks -- >> problem with bonds is the price. not exactly -- >> not relative to everywhere else. you get a 2% yield on the 30-year bond here in the u.s. and go to germany and which is essentially the same credit rating and going to get much less than that. >> i tell you what. i almost hate debating this and bringing it up time and again and can't avoid the fact if you're a fed policymaker looking at the data this morning, you're feeling the chill down your spine. you don't want to do more extraordinary things here people have done elsewhere. >> i don't think they're there
but first of all the burden of proof of is pretty high for september as it is. right? the market thinking one third chance as it is. i do think that a weak number tomorrow, let's say, you know, tens of thousands weaker than the forecast, probably going to be easier to rationalize and to accept than a very strong number. you can't overlook a very strong number. august as we have all been told is a downward bias to this. i don't think we're talking about a make or break for september tomorrow but a strong number kind of keeps the conversation of when and not if and i think steve liesman was saying that august is also one of the most adjusted -- >> exactly. >> -- numbers, as well. not adjusted down necessarily. so, to your point, if it's a miss, not as bad as if it's just an exceptionally strong number which, again, they're not going to declare at 10:00 tomorrow morning eastern time. that number so good we're moving today. won't happen. it waits until the fed meeting.
they still have roughly three weeks. >> in the meantime, we have plenty of earnings to give us their own reads of this economy. let's get to broadcomm's results. >> a beat, earnings up adjusted higher than the consensus of dlfr 2.77. revenue, too, topping expectations at $3.79 billion. wall street was looking for $3.76 billion. that is acquisition of february of 2016. q4 guidance for revenue above expectations. the company also raising their dividend from 50 cents to 51 cents. we'll continue to read through the earnings report. >> thank you, seema. watching it to see took little while for the shares to price everything in here. a nice beat and moving lower. >> i mean, it is a very strong group and a very beloved stock in a strong group performed really well and why i feel as if maybe you don't get the
intuitive pop on a good number. 31 buy ratings among analysts on the stock. one hold rating. 1% of the shares short. in other words, people expecting something good here and why it's maybe not taking off. >> the broadcom integration, although it's tremendous for them, ivago is still dealing with that. same way crm dealing with the recent acquisitions. in other words, not trying to give team pass saying, look, take six months to a year to get integrated but it does and these impact shares a. $5 drop out of $170 stock. not the end of the world. i have no position in it right now. >> brian? >> it looks like a sell the news type of event. as mike said. this sector has been everybody's been in it. right? so who's left out to buy there? this is probably going to be very volatile day. you have to wait for the conference cause that's where a
lot of moves have been made recently whether the conference call goes on. >> always looking forward to seeing how the stock reacts to that information, too. er have phone looks to be lower on the earnings. p.a.y. >> i'm looking at a different stock. >> a celebration or a throwing of things going on over here. >> good stuff. >> but there's verifone down nearly 11%. the problems in terms of this one, brian, well-known. obviously, making equipment in a thin tech space and people are super eager to get into. >> yeah. i couldn't hear the last part there. you're right. this is an area that is somewhat being disrupted. again, you are going back to the broader economy here, too, which is why i think the ism is important. again, i would say i have to caution. let's see what the guidance is and what they say in the conference call and then we'll have a better idea to try to buy this in the after hours.
>> looks for fourth quarter adjusted eps of 28 to 29 cents. i think the estimate was 50 cents. i'll double check and would have a lot to do with why it's seeing the shares drop. >> i don't have the info in front of me. with a miss that big, there's a one-time item or something. >> absolutely. let's get to lululemon's earnings. aditi roy? >> it's in line for the revenue side and bottom line is a beat. the revenues came in at 550 million for lululemon in line with expectations for the eps. a beat at 39 cents a share and the guidance for the company is coming in at 535 million to 545 million. as far as total comp sales, which is obviously important in retail, it was 5% on a constant dollar basis. and their gross margin 49.4% compared to last quarter which
was 48.3%. the earnings call is going to be beginning soon. the stock by the way down right now in after hours trading 8%. we'll listen in and tell you more as we hear more from the ceo. >> thanks. jon, you were a little cautious i'm imagining on -- >> i wasn't cautious. i was negative. and i was negative not because i'm smart. because i've been on the show with you guys enough. you know i'm not smart. however, there was a just a great tell. they were buying puts at the 74 strike with stock at 76. at the 72 strike, the 70 strike. all the way down. puts are trading about 2 to 1 over calls. that's not what you see going into a good report. when i see that many puts trading and i don't see a commiserate amount of stock, in other words, puts and stock together, that's a synthetic call, kelly. potentially bullish. this had none of this. this is all people either covering and saying i want to protect my gains from the lulu
run up to $81 a share. one of the topper formperformere year. i'm making money in puts and not rooting against company but just following the fast money. >> absolutely. and there are plenty 06 people in the stock shaking their head whipsawed again here. >> it's a high valuation stock going to get whipped around when you have basically what it looks like on target revenue guidance and nothing wrong with that. still, you know, 30-something types earnings retail name and it obviously has high expectations and also still a battleground stock and still 20% of the shares short. there's a lot of quick silver moves in here. double digit percentage move here four of the last five quarters. >> wow. it is becoming more mature company. >> it is. >> you would think. >> more than a battleground stock just because the longs and shorts but a battleground stock for the athleisure area in
general, right? i think this was an on the screws report and in this area, you got to be showing you're taking market share, aggressi aggressively growing and probably this report as it came out what everybody expected is a disappointment in that sense. >> yeah. it's mike's favorite space. the athleisure segment. >> yes. >> not saturated or hyped. >> you know, i'm early. maybe i'm going to continue to be early. i think we'll look back on this day and age of saying people wearing yoga pants to work maybe ill advised. >> glad i put on the real shoes for this segment. by the way, jon, what do you now with lululemon? >> buying stock in the afterhours. i can't trade the options i was trading. but in the after hours, buy stock against the puts that you bought. that locks in the profit and then if the stock does rebound tomorrow morning or something, it could hit it twice. >> let's get back to seema mody with the earnings of smith & wesson.
seema? >> shares of the gun seller moving higher in after hours. trade driven by the firearms segment. earnings of 62 cents adjusted topping expectations of 53 cents. revenue looks good here, $207 million. the analyst expectations for $198 million. in the press release, management says they believe the higher revenue driven by strong consumer demand reflected in adjusted background checks and been a big outperformer of 2016, up over 30% due in part to the recent shootings and the prospect of tighter gun control. stock up about 3.8% in extended trade, kelly. >> thank you, seema. brian, every time that pros peblgt of a crackdown looms, this buying happens and so difficult to talk about because honestly, when's happening in chicago in terms of the number of shootings and killings this year unbelievable. should be getting way more attention. >> right. >> i don't know if anything it has to do with smith & wesson
right now but it's difficult to discuss. >> yeah. it's incredibly -- listen. i mean, whether or not you make money in gun stocks, pales in comparison to the gun violence that's out there. almost impossible to say i'm making an investment on that type of thing. what i would say is that it's probably more of an election cycle stock. right? you probably have some support going into the election on the idea depending, let's say hillary clinton who wins and then perhaps there's gun control and at least maybe people are buying ahead of that. so it's probably got a tail wind at least until november. >> that's smith & wesson, a busy segment already for earnings after hours and keeping a watch on the movers for you. brian, thank you. >> yep. stick around. much more next hour on "fast money." tony dwyer is going to explain why he thinks a good jobs report could mean bad news for the market and that's again at 5:00 p.m. eastern. venezuela is in dire economic straits. people have taken to the streets today to pressure authorities to allow a vote to cast -- that
could oust president madero. many journalists expelled or barred from the country ahead of the protests and speaking with a "wall street journal" reporter on the ground in caracas. and wells fargo and amazon called off the loan partnership announced six weeks ago. why it ended and how it affects both companies is later. you're watching cnbc. today sarah's class is reading my most celebrated work, hamlet.
welcome back. economic slide in venezuela bringing out thousands of people to the streets of caracas today to protest the nation's government. the day dubbed the takeover of caracas is aiming to put pressure on authorities for recall referendum aimed to oust the unpopular president maduro. with us on the phone is a reporter for the "wall street journal" in caracas. anatoly, thank you for phoning us. it sounds difficult. when's happening there? what's the latest at the moment? >> that's right, kelly. a big day for the state. they brought out up to a million people in the streets of the city of caracas. this is almost a quarter of the city's population. biggest opposition rally in more
than a decade demanding recall referendum president maduro. the recall is legal, part of a constitution but the government knows it will lose and doing everything in the power to prevent it from happening. but, yeah, you know, a lot of energy on the streets today. people dance and singing even though people are protesting what has been very big poor living standards in the caribbean country and turned into one big party for most of the people. >> it's interesting because this also sounds like a last avenue if you pardon the pun people have to push for this referendum because the government controls so many of the other, you know, effectively all the branches of government and with the quarter of the population, a million people showing up today, what effect will that have and actually getting this change? >> you're absolutely right, kelly. the government controls the courts, police, authorities, leaving the opposition, the
streets as the only opinion they have to try to exhort pressure. won't have an immediate effect. the government won't change the hard line just because some people danced in the streets but it shows the strength of the opposition and will increase the power when they sit down to negotiate behind closed doors with sectors of government that prefer peaceful transition to social implosion that's looking increasingly likely. >> mike santoli here. i wonder if you characterize what the day-to-day economic conditions seem like there relative to how they have been in terms of availability of the necessities and things like that. is it worse? pretty much as it's been for months now? >> venezuela keep in mind is biggest oil producer in latin america. it grew massively up to the '70s, '80s. used to be the richest country in the region. it had one point the biggest oil refinery in the world and biggest hydropower plants in the
world and people were doing very well. today from venezuelans majority the main struggle is just finding enough food. usually ten hours a week waiting in line trying to buy basic necessities. inflation set to reach 700% by the end of the year according to my math. the economy has lost a quarter of its size just in the last three years and this is an unprecedented collapse only comparable to soviet union in '91. it is really, really dark. >> do you think there should be more international pressure put to bear on the situation? from f there's a narrow window for the referendum and doesn't just leave the vice president of the existing regime in power, you know, what more can the people of venezuela do to express to everybody, hey, we need help in this situation? >> that's right. it's a very tight balance to have because on one side you
want the international community to put real pressure on maduro to hold a referendum, maybe sanctions or kicking out the country from regional groupings, on the other hand, the government has been very effective in the past of basically portraying the opposition as lackeys of america and imperial interests. >> right. >> so any attempt to draw in the united states, for example, tends to backfire. so, yeah. it's a pretty difficult situation either way you look at it. >> thank you again for joining us. appreciate the update. >> thanks. bye-bye. ambarella with the earnings. josh? >> kelly, ambarella reporting eps of 54 cents. that is versus expectations of 38 cents. revenue clocking in at 65 million. the street had been looking for around 64 million. also, a q3 guide here, looking for q3 revenue between 95
million and 99 million. heading into the print, the stock surged more than 70% over the past 3 months. talking to charlie anderson who covers this name, i know on the call he wanted to hear how excited, how optimistic are executives about the gopro holiday and generates 20%, 25% of the revenue from gopro. the call at 4:30 eastern. we'll be on it. >> thank you. i was looking to see if gopro shares are moving higher. what do you make of this? >> this is just as josh said, a stock that's run tremendously. and in fact, kelly, i worried about a week ago on tv whether or not it had gone too far too far and raced up to 72. then had about a $4, $4.50 pullback into the $68 range and snapped back yesterday like crazy because when it was down, it reversed right back up.
got over $71. now in the after hours here's around $73 something. so to josh's point, the rest depends on the conference call. >> just for context, this is $125 stock at its peak about 14 months ago. so in other words, there's a lot of range that this thing has gone through and been a kind of phoenix-like move. when people realize gopro maybe stabilize and more than gopro and hard to say how much higher it goes. >> continuing to wait to hear more. prime members get plenty of perks at amazon. one of them was the discount on a wells fargo student loan and turns out that deal more like a flash sale. the partnership between the internet giant and the bank is over after just six weeks. when's behind the split is next. and the journey to mars will be long and expensive. coming up, how nasa is reworking the business model to gear up for the trip to the red planet. we'll be right back. thlaunininw.
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orgizatiointh needs ofeople 50 and over r gerations. plusnine out of n plan memberrved remember, mecareoesn cover ytng to a frnd. callow, ret your free desion g anstargatherinthe informion you ed to help yokeep rolli wh confidce. go long™. welcome back. we start here with seema mody. >> seeing movement in the retail space. down 3% for gap versus 2% decrease last year. braeblging out comparison sales of brand, gap global negative 5%. banana republic global negative 10%. old navy global positive 1%.
cfo of gap sabrina simmons said we're pleased of old navy and remain focused on improving results a cross the global brands. brands down 1% in extended trade, kelly. >> intrigued to see how they do that. thank you. another relationship of amazon and wells fargo is over. they had a discount of loans from the bank and after six weeks they end the partnership. kayla tau sha has more. >> it was supposedly a multi-year partnership and perhaps it worked better in reality than theory. the student pays for prime and then with two-day free shipping and amazon, they get a lower interest rate on his or her private student loans. at the time of the announcement, john rasmussen said the bank is focused on innovation and meeting our custers where they are, increasingly that's in the digital space. this was supposed to be a huge
source of growth for wells fargo. the cost is six months free and then $49 after that and a problem. private student loans like the offered by wells even with the amazon discount are still much more expensive than their federal counterparts. groups criticized the plan saying it was steering college students into more expensive products, simply because they were already amazon customers. it's unclear what put an end to the deal so soon. other partnerships between tech and finance companies ended over data sharing. in this case, we don't know. we also don't know how much if any student loans the two were able to partner on at all. we reached out to both companies. wells fargo did not return the calls. amount zon said that promotion for prime student members has ended. >> is it possible government pressure? >> perhaps. we don't know what it was. neither company really is budging. unclear whether that's because it's a thinly staffed week for many in corporate america or
because there's something more there than meets the eye and looking at the difference of the interest rates for what you get on the fixed undergraduate four-year level from the government and the private side, if students are on prime and see something promoted to them that they feel they need to take a part of and not the best product for them, then there could be a problem. i would think maybe that consumer financial protection bureau is something, this would be up their alley, perhaps. >> i can't imagine it was going to be that tremendous a source of new borrowing for wells fargo, for example. yes, it is nice, a good market for a role in. but maybe if there was just any kind of static about good for our brand or not, why bothersome. >> but it show you that these companies are really grasping at straws to make the brands relevant in the year 2016 to appear to be digitally savvy and to be as the executive from wells said, meeting the customer where is they are and perhaps these don't always work out quite like they do at the
drawing board. >> interesting way to tell is are you going to be able to access the app of alexa? soon to be a relationship and other aspects or something deeper here? >> certainly wall street wants there to be. they want to be friends with people in silicon valley and embrace the technology and harness it for their customers. >> very interesting one. six weeks after it started. thank you, kayla. time now for a news update. let's get to sharon epperson. tropical storm hermine is a bearing down on the florida coast, southwest of apalachicola with winds of 75 miles per hour. residents of that city preparing for the onslaught. a magnitude 7.2 earthquake off the coast of new zealand. civil defense authority there
ordered the evacuation of some coastal areas due to fears of a tsunami. vice president joe biden campaigning for hillary clinton in the battleground state of ohio. during a speech to the automobile union workers, he told donald trump to -- he took donald trump to task rallying against the suggestion of wages too high for some working americans. and first lady michelle obama joining seth meyers and nick cannon at the howard university business school this morning. she received a standing ovation when introduced. they took questions from the students in attendance. that's the news update at this hour. they had no idea she was coming. students were shocked. >> oh really? >> yes. they thought it was nick cannon and seth meyers and then she appe appeared. >> wow. that's a surprise hard to ever top. >> yep. definitely. >> thank you. >> take care. well, it's the tale of two trumps meanwhile. the republican presidential nominee softening the stance on immigration in mexico city after the meeting with the president
the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california. welcome back. the dow and the nasdaq managed
to finish higher today by 18 and 14 points respectively and the s&p is lower kicking off september and slightly closed around 2170. here's the names moving after hours a. slew of earnings reports already. a lot of movers to the downside. lululemon, one of them with the conference call just begin and bringing you more headlines when we get them with the shares down more than 8%. republican presidential nominee donald trump had a meeting with mexican president. the tone of the speech in the evening was different than the subdued remarks in mexico. here's what he had to say about deportations. >> we are going to triple the number of i.c.e. deportation offices. within i.c.e. i am going to create a new special deportation task force focused on identifying and quickly removing
the most dangerous criminal illegal immigrants in america. >> joining us for their reaction is barney frank and larry kudlow. welcome back, guys. >> hi. >> barney, now that donald clearly laid out the plan, what is hillary's plan on immigration? >> well, first of all, i differ with you that he's clearly laid out his plan. we still do not know what his view is on deportation of the great majority of people who are here illegally and have not otherwise committed crimes. we also do not know on the fundamental issue who's going to pay for that wall. frankly, i have never seen such a fantasy so ardently mainta maintained. that's what he is saying. he goes to mexico and,frankly, i didn't think it was impressive. very nice and meek and doesn't raise it. and then when he comes back, not in mexico, not talking to the president, he is a tough guy and
they're going to pay for that wall even though they don't know it. it's a blend of incoherence and fanta fantasy. as to hillary clinton, what she is talking about is bipartisan bill that passed the senate a while ago with the support at the time of marco rubio and john mccain. they backed away. lindsey graham. that is to say to the people here illegally and not otherwise violated the law that there will be a period after which they can become regularized and having a -- >> path, right. >> millions of people in the country not legally here undermines other things. at the same time, she'll continue what president obama has been doing in the face of some criticisms from the left which is being very tough and increasing deportations of criminals. >> larry? >> well, look. i just want to say one thing about trump. for a long time we have talked about this. i have opposed the mass deportation of the so-called 11 million people who already live
here. okay? and it was not in trump's speech. and i was very pleased to see that. in fact, i will just quote just to get the -- set the record straight. briefly, in several years when we have accomplished our enforcement goals, then we'll be in a position to consider the appropriate disposition of those who are already here and he told my pal laura ingram today in a humane way we'll see about the people who are already in the country. he's left that. he's going to have a commission on immigration reform and deal with that. what he wants to do front and center, i don't believe mrs. clinton will do this, secure the border, he wants to stop the catch and release and make it catch and deport. he wants to go after the illegal alien criminals who are released from jail. he wants to end sanctuary cities. the emphasis on security and law enforcement. >> larry leaves out -- >> i think that's a sensible
position which mrs. clinton has not really outlined. >> yes, it is. oh, larry, much of it is, in fact, not just clinton's advocacy but obama's policy going after the criminals and getting rid of them. toughening up at the border. but you leave out, i understand the problem you have trying to rationalize this guy. you left out the wall. you talked about trump's immigration policy and left out what he says is his central position. this fantasy wall. and i say fantasy because he continues to insist it will paid for and that's to the large number of deportations, i went to -- well, tens of millions of $more than 10 million people, it's sbreing to see many that you consider a triumph the candidate you support and mass deportation of all of those people a central part of the campaign has now stopped talking about it. he doesn't say he won't do it. not repudiated and here's what's happened. people persuaded him that that was potentially damage. >> yes, yes.
>> excuse me, please! i listened to you. you didn't get him to reverse himself. he can then do it after he gets elected. do you believe the mexicans pay for the wall? if trump wins, you do? how will we make that happen? >> i don't know. >> what's the prediction? >> honest -- >> you believe they'll pay for it? >> i do not know and the honest answer is if there is a trump administration, this will all be negotiated. and that's what -- >> come on. what a dodge that is! do you believe -- >> i can't say because i don't know. you don't know. >> larry! >> you don't know either. >> i know it won't happen. i know it won't happen. >> no one knows how it plays out. >> that's a fantasy. i do know. it's a fantasy. >> there's no reason -- all right. may be a fantasy, may be a fantasy -- >> larry? ask trump. excuse me! you say you don't know. >> all right, all right. larry, go ahead. >> ask trump. >> i'm trying to say i acknowledge. i don't know.
but i'll say this. >> ask your candidate! you talk to him. ask him! >> border security is essential. i think -- >> i agree. >> catch and deport is essential. i think repealing kate's sanctuary cities for kate's law and the criminals, illegal alien criminals out of this country are -- >> except for the sanctuary cities which is a red herring and they're well -- larry! larry! ask trump, why don't you ask trump how to pay for the wall? you talk to him. >> next time i see him -- >> you be his advocate. >> i'm sure it's lots of these diabeteses, too. >> you know me. i call them as i see them. all right? i don't know this. >> you don't want to hear it. larry! it is what you don't want to hear. >> the humane approach regarding the 11 or million here is -- >> we don't know his approach, larry. >> i like it very much and he's impressing a lot of other people. >> larry, are you saying -- >> i'm for the --
>> thank you both. >> larry! are you saying no more deportation. >> i love legal immigrants. >> i can see larry trying not to laugh. we'll see you next time. before it's a psychoanalysis here. matt damon made it look so easy sort of in the smash "the mart shan." we'll look at plans for the real life versions of mission to mars. y gary, what are u g? oh h joh i'm conntingur brain so we share ou amazing tra
space-x may be facing a setback following a explosion of the falcon ix rocket this morning and not just spacex to feel the effect. also a blow to facebook because the spacex rocket's cargo was a satellite of facebook's to beam internet access to developing nations. facebook did release a statement saying we're disappointed by the loss but remain committed to our mission of connecting people to the internet around the world. now for the feel-good news, in a statement spacex said, quote, per standard procedure, the pad was clear and there were no injuries. thank god for that. well, morgan brennan is covering this story for us from port canaveral, florida, and following another one, taking a look at why the journey to mars means a new business model for nasa and the third story is apparently the hurricane bearing down on you, too. welcome. >> reporter: yes. thank you. and we will be talking about the hurricane more at length tomorrow. but in the meantime, nasa's journey to mars going to take
years. tens of billions of dollars. the implementation of some technologies not invented yet and requiring the space agency reinvent its business model. >> reporter: a manned mission to mars is nasa's biggest feat yet. but all the science in the galaxy doesn't matter if the money's not there. >> it's a package. it's going to be robotics, it's going to be commercial, industry, international. we're going to have to collectively use the best of the best. >> reporter: that means collaborating with private sector companies and combining resources to achieve mission self sufficiency. from astronaut training to hardware designs. lockheed martin's aircraft recycling air and water because the cost to haul the supplies into deep space is higher than low earth oesht. >> there's no real opportunity for anything to catch up to you. so once you push off, you have
to have already collected everything. it's dollars. efficiently putting it together to be affordable. >> reporter: nasa and partners retro fitting whenever possible. the space launch system rocket will use four engines to propel orion. they were used on all 135 shuttle missions. thanks to automation and metal 3d printing, even manufacturing is streamlined including for the sls core stage. >> almost cut the tools in half. we've also been then able to do it with fewer people and more affordable and cost less. >> reporter: in some cases, a lot less. for some parts as much as 1/20th of the former cost. so some of that video we just showed you at nasa's facility down just outside of new orleans. it is the largest welding system in the world called friction stir welding and it can actually create a liquid hydrogen fuel
tank in under 30 days and do so with markedly less defected than the older method of welding an seeing technology invade every aspect of this mission to mars. kelly? >> love that. a great story. go get some cover. i love the jacket, too, by the way. i need a couple of those for the panel. and we'll see you later. morgan brennan down in mr. fl for us. would you guys go to mars? >> no. >> yeah. me neither i don't get it. >> you can land people in the desert somewhere and tell them. the twilight zone episode was about that. >> greatest show. i mean, so many ways ahead of its time. the remarkable retail rebound. the world trade center has had approaching the anniversary of 9/11. tonight, tune in to the documentary about the revival. "ground zero rising: freedom versus fear." reported by jim cramer at 10:00 p.m. eastern. we'll be right back.
welcome back, it is been nearly 15 years since the attack of 9/11. courtney reagan is there with more. >> court. >> reporter: the financial is looking different now than it did 15 years ago. of course, when we had the 9/11 tragedy. the major shopping center, two or three of them have recently opened. >> westfield world trade center mall which is right here behind me opened just two weeks ago. the higher end brookfield place opened in spring last year. next year, that's going to be a little bit more like an artist
marketplace like custom makers. according to the alliance group downtown new york, lower manhattan added two million retail spaces the last two years and 2019, a growth of five years of 67%s and rents are way up, too. >> financial district and available retail rents have grown on average of 100% over the last decade. according to the real estate board of new york. fo foot traffic is really key here as well. >> 15 million tourists will visit this neighborhood next year. there is also 13 subways and train lines and 300,000 commuters everyday and the spending power of lower manhattan could total $6.5 billi $6.5 billion annually. kelley. >> courtney, thank you. it is fascinating as we come down here to the stock exchange and seeing all that's happening and the last couple of years she
mentioned. when 9/11 attack happened, most of today's work force were just kids. and in a new documentary on the site. cnbc's jim kramer introduces us to the staff. >> there is not anyone in the world who does not know about world trade. >> a lot of people were not new yorkers and who had emotional thoughts and feelings about this base. >> i am sure there are people whose moms and dads who said was it important that you go to that tower? >> definitely. the anymore one response was a day later where my mom does not want me to work there or my parents does not want me to work there. it is a millenial that your parents are weighing in on where you work. >> i don't understand the
hesitation. it is a target. as jim reported, it has one of those re-enforcement buildings in the world that costs $4 million to build. >> it is interesting. i worked down there before and after 9/11 for a bunch of years and if there is any good thing that's coming out of the torturous process is integrating with the city and how something of sealed off. the world trade center was really, aside from the height of the billing it was not an attraction. >> now, it is amaze ing and a l o retailers. >> and it is beautiful. >> so many people especially coming from chicago, so many people back there thinking it is the entrance to the subway, which is it is, of course, it is more and that's exactly the retail that you are talking
about. that's where is the eppie center. >> if you remember what it looks like five or planten years ago. >> you can catch more of our documentary reported by jim kramer, it is called "freedom verses fear" tonight at 10:00 p.m. eastern. >> tonight, justistarting in ju couple of minutes, we'll get a check on the stocks and what to look for when we come back. tw do y solve thiurute. don't. panethm advises verns the rtn and, canelerhterson toerson, panethm advises verns the rtn ont tts to y.
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lulu lemon and ambarella conference calls started just a while ago. you can take a look at broad come and smith and wesson a little later here. >> so lulu is really the big mover here. >> it is. it is not broadening out to other related companies on first glance. it seems like maybe lulu is digesting its games this year. >> it out performed nike and under armor. it is having an awful after hours. >> yes, it is. >> guys, thank you very much for joining me here.
we look forward to tomorrow's big news. we'll get the payroll read, that'll be a big one here for the market of the day the economy and the fed is going to go. that does it for us on closing bell, fast money begins right now. fast money starts right now live, over looking new york city times square, i am melissa and dan nathan and tonight on fast, shares of lululemon is getting slammed. we'll tell you what it is and why it has big implications for the rally. plus, you thought you had a bad day, the shocking news of spacex. we'll explain and later donald trump is picking up after the polls and could be trouble for a surprising group of stocks. we'll tell you what they are later this hour. we'll start out of what will be the rk