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tv   Closing Bell  CNBC  October 27, 2016 3:00pm-5:01pm EDT

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there were two brands online that are ubiquitous. one is google. the other is amazon. i go google something and check amazon if i want something. that is the brand power. full coverage of reports tonight at 5:00 on fast. "closing bell" starts right now. welcome to "closing bell." i'm michael santoli in for bill griffith. $38 billion biggest chip deal ever. we have goldman sachs global held coming up. >> we have a busy pipeline. >> about $150 billion this week alone. >> meanwhile aetna saying it expects more losses from obama
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care plans. ceo mark bertolini will discuss what it will take for his company to return. and ron howard will join us here at the new york stock exchange to discuss his new film and the state of hollywood today. >> he is the kind of director who has done something that somebody in every generation seems to love. >> i remember watching him on happy days. we will talk to him next hour. after the bell big earnings from amazon, amgen just to name a few. we tell you what to expect coming up. let's begin with a company that was supposed to report this afternoon. twitter shares getting a boost after reporting better than expected earnings in the third quarter and announcing it is shutting down short form video app vine and laying off 9% of the work force. earlier on the conference call ceo jack dorsey addressed the job cuts. >> we are getting more disciplined about how we invest in the business.
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we funded our most critical initiatives and set a goal towards driving towards profitability as we deprioritize certain initiatives and simplify how we operate. as part of this we decided to reduce the size of our organization by 9% mostly concentrated in sales, partnerships and marketing. >> joining us now to talk more about twitter the stock is steven dash who is bullish on twitter. steven, let's start with you if you don't mind. stocks not holding the morning gains very well. there is a lot of talk about being a little more careful about spending more vague talk about reinvesting in the user experience cht what did you see to the numbers that reinforces or gives you pause. >> twitter does have problems. it will be easier to hear about how great amazon is killing
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everything. we were talking about twitter and double digits versus s&p 500. the thing i like about them is they are accepting who they are. they are 300 million user company. they cut 9% of the staff last year. they are accepting this is our company. let's try to make it as profitable as possible within this model. next year they will be profitable. what they are doing with the nfl, the live feed is killing it. 2 million in the first few weeks. nhl looking to follow suit. taking existing base and trying to make as much money as possible off that and make them more active users as opposed to saying we get another -- >> make them sound like a teenager accepting who they are. talk about why you are bearish on the name still. >> i mean, today's pretty telling saying it doesn't make
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us more bearish or more bullish because it was in line with expectations maybe on the bottom line. on the key metrics basically user growth that was really nonevent. the good news is i think they have the right strategy in trying to build live. the bad story here is q 4 is probably going to be a wash because of this sales resoerd that they are going through. we are hoping q 4 will start seeing improvement in the modernization. i don't know if we will see it. the first period we are probably going to see it if it happens will be early next year. you know, the numbers i think we saw today put a floor on where the stock should trade but it really should not be a reason to get everybody to be incremental. >> you mentioned that twitter seems to be accepting what it is. but really there is a lot of conflicting signals about that
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self conception. is it a platform for real-time live experiences? is it a synthesizer? is it a news letter platform? all these things are out there. where do you think the real value will come? >> that is probably the reason why they weren't able to sell a couple of weeks ago because what are they? i'm not going to tell you they figured that out. i know it is nice they are trying to find a way to make themselves profitable and not just keep burning through cash. they're probably a little piece of everything rattled off. that is why the x factor is someone will buy them at some point in time when they start making more money or hit a price that someone is willing to jump in. i know people dipped their toes. sooner or later they are more a feature than full blown company and they will help someone looking to compete with facebook
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and fold into a bigger entity along those lines. >> briefly before we go on that point is it easy to be cautious when that potential bid is out there? how long do you give it to materialize? >> we have always said that this management team has a few quarters now by the look of it it looks like a couple of quarters for them to prove that the new strategy is going to work for the stock to be cheap. but we are fundamental analysts, not trying to make calls based on property of a takeout. we published a note several weeks back highlighting how alphabet makes the most sense for them to acquire them. sales and marketing is up 30% compared to facebook or google it is around 15%. so like alphabet were to acquire them then they could improve the value proposition, or improve the bottom line and be able to
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pay a higher multiple for it. >> we shall see. >> we'll hear more from google after the bell. thank you guys for now on twitter there having quite a day after earnings. now to seema mody for a market flash. we have big moves in the publishing space. shares of tronc. there is a report from bloomberg that the gannett-tronc deal is in doubt. there were reports previously that a billion dollar deal would potentially be coming together between the two companies and could be announced as early as today. according to this report this deal may have been put on hold why we are seeing shares of both companies, shares down by as much as 14% for gannett.
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>> thank you. tronc being the tribune company. >> these are in declining businesses. maybe banks got spooked. >> we saw numbers getting worse. look what is happening at journal. supposed to get this morning, the silence is deafening. let's get to "closing bell" exchange. we have jonathan at post nine and rick santelli is back. good to have you in the house. jonathan, let's begin with the market. the dow is down five points but it seems to be the bond market is catching more attention. >> clearly it is. when you are looking at the equity market and take a step back we were stuck in a tight range for a long time. a lot of investor complacency. i like to see that we have continued to see a little more activity in our markets. volatility has picked up. even though we trended down over the last few weeks it is good to see that there is a little more
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excitement back into this market. as we get closer to elections, as we get closer to interest rates conversations and a hike that will happen in the near future i think people are more excited to get back into this market but early on in the teenages there has been a risk reduction that has taken us off the highs and given investors an opportunity to look at the market, look at portfolios. >> what about this move in the bond market? the ten year yield has been kind of a two steps up, one step back pattern. it has been methodical. here we are 1.85%. what do you see pushing it right now? >> first of all, i love your description. it is methodical, two steps forward, one step back. it has been that way for four weeks now. in my opinion it will continue. why? i think because central policies from central bankers have run out of run way. there is a host of other aisles
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that we could talk about, certain data points may have improved. the uk is doing better after brexit. why am i bringing up the uk? because it isn't unique to the united states. boon yields are hovering at the highest closing yield since the 24th of may. there's is the longest. may 31 for our tens. june 10 for our 30s. you compare to 623 brexit only because brexit had such a large response. all the rates moving up together. one thing they share in common is central banks have the same similar policies. one thing i would caution, the next thing to pay closest attention to isn't this move ending anytime soon. i think it is what the response in the fixed incokcome market w be to the equity markets. the equity markets aren't going to like higher rates. so how that relationship moves
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forward is significant. the reason i say it is mostly not about the data tomorrow we get our first look at third quarter gdp. it is at 2.1. in august it was 3.7. you can slice and dice all the data points you want. 2.1 is better than what we have seen the last couple of quarters. this was supposed to be the quarter to get the averages up. >> what do you think about the rising rates? any concerns or opportunities or do you think it is temporary blip? >> i think it is important to keep in perspective that yield is still -- beginning of this year i think investors should be focussing on what that means for the housing market. the ten year treasury yield is exactly what mortgages are priced on. you see ten months in a row of decel rating mortgage applications and the concern i think investors should have is what effect this has on housing market. this is another drag on housing. i think there is a positive to
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be made when you look at ten year treasuries are. this makes a real case for those in higher tax brackets to be investing in tax free bonds. >> just the follow on that point the corporate bond market, the credit market has taken this in stride. who knows if it is because european central banks buy corporate bonds. that has not been giving the stock market much of anything to worry about. >> jonathan hit it on the head. the markets are at elevated levels. i think there are hurdles to be addressed. investors should take advantage of the high points to take care of the family gifting. between uncertainty about what the fed will do and who the next president will be and what the tax rates are going to be and then just the concerns about capital spending is what we are hearing from ceos that we serve. this cloud over the markets is making them reluctant to spend
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and invest corporate capital. uncertainty looms and we need time before clarity comes. >> so all interconnected. thanks for now. appreciate it. about 45 minutes to go. the dow is negative today. so is s&p. transports are positive by about 50 points. >> cyclical is up. up next profit pressures from obama care and how much plans can be dropped. and alphabet, amazon and amgen, we analyze numbers and get you instant reaction beginning right after the closing bell. you are watching cnbc, first in business world wide.
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hospital operator community health down 50% nearly. downgrading to under perform. the company expects to post an
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operating loss in the third quarter. community health blaming reimbursement as well as failure to achieve anticipated expense cuts. >> by the way, a $50 stock in december of 2015. this has been a long slide even before today. >> critics of obama care broadly speaking saying this is a victim of it because some rulings on what they are allowed to reimburse for it is amazing what a slide. >> they are blaming a mismanaged situation with the company, as well. a lot of blame to go around. aetna stock slightly lower following earnings report that beat expectations. >> joining us now is marc bertolini. >> how are you? >> let's begin with broad strokes. it has come to the nation's attention how bad a situation it is for the affordable care act in terms of exchanges, one in
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five people on the plans having one option to pick from. are things bottoming out for this exchange or is this the feared death spiral, so to speak? >> i think this is the clarion call to make legislative changes to make the product more sustainable. we need to fix the risk adjustment program. the population has more morbidity than initially anticipated. we can fix risk adjustment we can stabilize the market. until that happens it will only get worse. >> does that involve changing this level of subsidies, changing penalty levels? what would you like to see in a fix? >> i think the biggest issue is the risk adjustment program. the expectation when we started this program was in the first three years we were going to get to a stable risk pool that had an average risk profile that cleared at zero. what we have is a population
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that is sicker that is clearing at minus 10% to 15%. and the result of that is that we had a risk adjustment mechanism that is not paying out. all it is doing is transferring risk from companies that are losing less money to companies that are losing less money so we lose the same money. until we fix that part of the process it will not change. >> drug pricing, are you guys one of the insurance companies looking to do something with value-based pricing? >> we just finished two projects with mercke where they engage inside ouf our care model and work with us on type ii diabetes. we will have a reverse rebate mechanism that will work if we get more of our patients on the right drugs that we identify and they identify. we will reduce the amount of rebate we expect from them? >> and you are still pursuing.
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you are going to fight for the right to merge with humana. your deal is still on the books. this is going on 16 months right now. how far do you expect to carry out that effort? >> we do expect to close the transaction. we will be in front of a judge on december 5. the judge is committed to have final conference on december 31 in his offices in the morning on saturday so that he hears everything he needs to hear so he can rule in the first few weeks of january. >> just wondering if you had issues with this merger, a lot of struggles with the exchanges. hillary clinton is in the lead. what do you think happens if she does win on election day? >> i think it is less about the presidential election and more about whether or not we get a congress that can work with our next president to come up with the legislative changes necessary to fix the affordable care act and move forward with
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getting all americans insured. >> if they need to work together does that mean you are in favor of something like a democratic sweep or would that take the whole thing in a direction that would be unfavorable for the business. >> i just want a congress that can work with the president. however the move works for the american public economy and a lot of other sectors other than health care will be the right decision for all of us. >> do you believe that your take on what should be done, is that message taking by the people and congress? is that something that would be the likely first step here? we have a lot of people saying the problem with obama care is we left big private insurance companies in the bottom of the system and you don't want to refight that battle. >> there are two big alternatives here. in a more democratically controlled congress and white house we will move more towards fixing what we have and there are some very easy fixes and
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risk adjustment that can make that happen. in a more republican controlled congress or white house what we will have is we will have really probably what could have happened and been a lot cheaper for all of us. you extend medicare down to a population where you have chronically ill people over 55 and you continue the expansion of medicaid where these two programs with in place risk adjustment mechanisms and solid systems to track eligibility and enrollment would have worked much cheaper than implementing the affordable care act. >> businesses that you and others are doing quite well in. just a final question. why would it be 2019 or 2020 before going back to the obama care exchanges? >> we need legislative change to get the risk adjustment mechanism fixed. we have to put in 2018 pricing by april 1 of 2017.
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it would be a miracle if anything happened between january 8 and april 1 of 2017 in a legislative way. >> that is a very short period of time. thank you for joining us. >> thank you. >> that is marc bertolini. with less than 40 minutes to go before the bell the dow lost ground down about 30 points fighting near flat line most of the time. the conflict of interest issues getting uglier thanks to a new hacked e-mail leak. eamon javers has the latest. we will run through key numbers analysts will be looking for in alphabet and amazon reports which comes after the bell. before taking his team to state for the first time...
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we begin with another market flash. >> we are watching shares of tronc very closely. it halted after coming off its lows. there is a new headline from reuters that gannett remains in advanced negotiations with tronc about a possible acquisition. reuters quoting sources. this comes after bloomberg reported the deal was in doubt due to bankers potentially fulling back on funding. we are looking at shares of tronc halted. it is off of lows. i am being told it resumed trade
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down about 20% on the day. >> stock moves showing you how high the stakes are. without this deal it is trouble there. the alliance between politics and profiting from politics looking blurrier at the clinton foundation today. eamon javers has the story down in d.c. >> so much attention being paid right now to these stolen documents including one from a former very close aid to president bill clinton. he wrote a 12-page memo detailing the ways that clinton foundation, bill clinton personally and private company all profited from the same group of donors. one of the people paying attention to that is donald trump who talked about it out on the campaign trail a little while ago. here is what he had to say. >> if the clintons were willing to play this fast and loose with their enterprise when they weren't in the white house, just imagine what they'll do given
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the chance to once again control the oval office. >> so what did doug ben write? here is a sample summarizing the ways bill clinton made money. he said the business arrangements yielded more than $30 million for him personally with $66 million to be paid out over the next nine years. band writing we solicited and obtained as appropriate in kind services for the president and his family for personal travel, hospitality, vacation and the like. clearly here this is an e-mail that wasn't meant for public to have access to. the clinton campaign said here about this, though, that these are stolen documents and wiki leaks is in cahoots with the russians and say they are not going to authenticate it. a lot to chew over and given a lot of clinton scholars a lot of material.
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>> clinton scholars. wow. we have two weeks to go basically. how is it going to go over with the voters? >> the question is whether this is all too late to make an impression in this race. a lot of attitudes hardened over the past nearly a year of campaigning here. but this is damaging to the clintons. in politics a scandal is damaging if it confirms what au everybody thought. this confirms to people that they are -- it spells out the details of how they did that and life on the inside, private jets and hotels and vacations. none of that plays well on the campaign trail. for the trump campaign they must be wondering whether this is too late to do any good. >> we will watch the next round of polls. a lot of voting has happened. thanks very much. >> you bet. donald trump's brand may be
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heading to trouble according to results of a new cnbc all america economic survey. steve liesman has the story. >> our survey finds trouble for donald trump when it comes to his brand. want to start off with good news f. you ta f. -- if you take the idea that any publicity is good publicity. 45% say they have not learned much at all. remember this 22% number. those who learned a lot, did they end up more or less favorable? let's look all over the population. on the next screen 27% of the public says they have a less favorable view of donald trump's brand, hotels, real estate since the campaign began. 4% are more favorable. two-thirds say they have no change at all in their view.
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now let's look at selected demographics. every demographic looks like this where the less favorable is higher than the more favorable. 22-5 for men. 33-3 for women. the wealthy is a potential big problem. the wealthy will go to him. we have heardsaries about reduced bookings or slashed rates. 22%, those who know a lot more about trump, 39% say they are less favorable towards the trump brand. 11% say more. that is potential trouble ahead. here is the data to show it. here are the overall results of our pole. 46% to 37%. it is about the same in the four-way race. this is registered voters. it is about the same. 17% undecided. that is down eight. hillary clinton looks to pick up the most of that. plus six for hillary from last
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pole. plus two for donald trump. >> thank you, steve. a lot of good stuff in that poll. time for a news update with sue herera. >> here is what is happening. tensions are escalating between north dakota law enforcement and a group of protesters. demonstrators angry over construction of oil pipeline have been camped out since sunday on private party. the local sheriff says the group is refusing to leave and set several fires. school zones may not be as safe as you think. a study found 80% of kids crossing the street were distracted by texting or music. drivers weren't much better with one third exhibiting unsafe behavior. >> for the first time a performance will be a factor in how much money the schools receive from the ncaa. under new guidelines released a portion of division one revenues from tv contracts will be distributed based on academic
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achievement of student athletes. that model goes into effect in 2019. this brings new meaning to the term penguin suit. when this female penguin started losing feathers the staff at sea world made a custom wet suit for her to keep her warm. there she goes. look at that. don't you love that? >> i do. i'm glad they did it in black so she wouldn't feel embarrassed. >> you can't have a pink wet suit on a penguin. you can't. she has to blend in with the crowd. >> who knows how many they can sell? >> always thinking of the edge. see you in an hour. >> thanks, sue. we're into the last half hour of trading. we have a little bit of down side move in the last 20 minutes. the dow down 16. caterpillar weighing on the dow. the nasdaq under performer all day. a couple have been easing back.
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a leading trader will tell us what he is watching. >> u.s. regulators giving the go ahead to test a vaccine. we have details coming up. we need to be ready for whatever weather may come our way.
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we are heading into the close. i am on the floor with steve grasso. a lot of different things happening. we have a move in rates. where is the market taking the cue? >> let's pick up on a couple of things. you have a couple of big deals. trying to stay ahead of rates rising. if it is an incremental raise it will effect it. we are talking about billion dollar deals. it is exponentual when you talk about add on effect. those deals try to get ahead of fomc. looks like that is when they are going to go. november 30 we have opec tlmpt are a lot of moving parts. i think those are bullish catalysts or things that keep the sales down for now. >> it has to make you take notice. we have seen some false starts before. >> for me i think that you
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really want to focus on december. we have the year end rally into the end of the year. the problem is what happens when you remove those catalysts? the election is out of the way. opec out of the way. not really so energetic anymore. watch december. >> mike? quaalcomm striking a deal on the heels of huge week. we saw at&t that is just weak to date. let's bring in goldman sachs michael carter at post nine. thanks for being here. >> thank you.
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>> the ingredients for a very active market, low rates, good debt markets. stocks doing okay. is it all coming together now? is there a reason we have seen catalyst lately? >> a lot of reasons is you will see a leader in a particular industry sector and he or she will decide now is the time to go. and transactions beget other transactions. so what is happening is industry structures are changing rapidly whether technology, whether they are going more global or not. so you are seeing actors move out ahead trying to get the advantage and then there is the echo of the second and third transaction. >> that is really what we see sector by sector. >> will we have a telecom sector? >> very good question. >> and they are changing dramatically. what further changes do you expect? >> you mentioned the key
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predicate which is are the deals going to happen? at some point the industries will get to what i call in state where there is no more movement and at some point either consumer will get them there or regulators will say enough. we have seen several industries where the regulators said can't do it anymore. >> as you talk to clients do they focus on whether it is expectations for what interest rates may be or the election or whether the antitrust picture might change when things come around? >> all of that. less on financial markets necessarily because financial markets are pretty stable right now. people look at this as a relatively predictable market place. you have very high correlation between stocks so particularly with stock for stock transactions it is easier to get those done now because you don't have the great volatility where stocks get out of alignment. >> one suggested if you look at
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credit markets on a relative basis stocks are cheap. when corporate managers realize this there is a frenzy of more activity. is that reflected in the conversations that you have that it is actually just that concern that we hear from everybody that is the biggest reason we maybe haven't seen more deal making take place? >> i would say the following. in 2012 the s&p s&p 500 is 12 1/2 times. this year it is 16 1/2 times. so equity markets are getting a little bit peeky and will get tougher to get deals done. the interest rate environment has been low for a long period of time. so those two kind of work together. it just depends. because of that we are seeing many more cash transactions than we have in the past. 55% of the deals last year were all cash. this year is 65%. people are taking advantage of the low rates.
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>> that includes quaalcomm. we have less than 20 minutes to go before the bell. the dow sitting on small losses and we do have the nasdaq pulling up the rear down 0.6. cuba's most notable exports may be cancer drugs and one is on the way to the united states already. directed or produced more than two dozen feature films after growing up in front of america on tv. ron howard joins us to discuss the changing movie business. stay with us. ♪ ♪i had to leave my happy home in exile♪ ♪oh which way should i go? ♪home is where i want to be ♪home we love being green. so the nest learning thermostat connects to your phone, and learns what you like, to help you save energy.
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since reestablishment of diplomatic relations in cuba medical research may be the most important part of the new trade relationship. >> the food and drug administration approved the trial of the lung cancer vaccine which was developed in cuba. >> it is a pretty cool story. this is a potential lung cancer vaccine that was developed in cuba. it was developed at cuba's center for molecular immunology
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and is a cancer center here in new york that wants to run the clinical trial. it is in buffalo. they are going to test this potential lung cancer vaccine in combination with the drug approved for lung cancer. this will be in people previously treated for lung cancer who need better drugs. this vaccine is approved in several countries. cuba and peru, columbe awe. this is not a vaccine the same way we think of a flu vaccine. this is for treating cancer. this is an area of drug development in the united states. cuba has a very well developed health care system and bio tech industry having not had access to u.s. pharmaceuticals they have grown their own industry and have quite a few drugs
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people are interested in. the health care system is credited to be the first country to stop mother to child hiv transmission. >> and so you mentioned that there is a relatively well established industry. are they pursuing lines of research that are entirely new? >> such a great question. one thing i thought of here is as the united states is focussed on its own things was exploring things we didn't get to pursue here. another one cited was a drug for diabetic ulcers. could benefit from that drug. so potentially things like that we may get to see more collaboration through academics and through industry which could be really fascinating.
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>> certainly is fascinating. appreciate it. >> just about 13 minutes. 12 minutes left before the bell. the dow struggling to get back to the flat line. it has been above -- it was opening 15 points higher. >> down 27. our next guest says stocks will be range bround until the presidential election but says the outcome could lead to a major rally. he will explain why right after the break.
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it's tick talk on earnings due after the bell. what to expect from amazon while john fortt has the low down on alphabet. >> amazon is on a roll. it is finally profitable. cloud business continues to lead. it is revving up for a blockbuster holiday shopping season and stock is up some 70% since february. but some analysts say that amazon is priced for perfection and anything less could lead to a tumble. watch out for aws.
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prime membership numbers and outlook. that could be the thing that makes or breaks amazon's climb to $1,000 a share. that doesn't sound too crazy because a growing number of analysts are putting the four digit price target on the e-commerce giant. back over to you. >> thank you very much. john fortt, what are key nuggets we are looking for? >> i think the key nugget that you want to look for is the core google units operating income. just to give you a sense of the numbers that we're expecting from alphabet overall revenue just over $22 billion. earnings per share $8.63. you have overall alphabet and then the core google business. the core google numbers are important because pretty much all of the revenue comes from there. it's the nongap operating income of core google which should be around $8.7 billion.
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google spent probably around a billion dollars on other things so overall alphabet's overall operating income is going to be lower. you want to see core googles profitability high enough that google can afford to spend on other things and hopefully that is not too much. >> we'll talk to you soon about that. we have the dow still down about 28 points. dealing with a bit of uptick. joined here on the floor by kevin nicholson. how are you navigating here? >> we have been in the range for three or four months. different groups doing better and worse than others. where are you trying to navigate through it? >> we think that the market is really going to stay range bound until after the election. we like technology. that has been a place we have been playing. it has been more mid cap technology instead of big large cap mega cap technology that most people are talking about.
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>> any examples? >> i think i would rather not name names but -- >> fair enough. let me ask you about the election because you did say possibly after the outcome the stock market rallies. why is that? >> we believe as long as there are checks and balances in washington, if democrats take the white house and possibly the senate but don't take the house then you will get a rally in the market place because then there will be stability and predictability. also, if you get a clean sweep and it is a down ticket then we think there will be volatility in the market. you will have replay at 2008 and 2009. >> let's hope not. >> exactly. what i meant by that was that you would have the democrats having control of everything. >> so we still want grid lock.
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appreciate that. >> thank you. >> we have the closing count down coming up next. >> after the bell those earnings that we mentioned from two big guns of tech, amazon and google. we will have the numbers and instant analysis from all-star panel. you are watching cnbc, first in business world wide. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs.
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really been a gentle range bob pisani all day. earnings have been doing what they have had to do. the reactions haven't been too exuberant. >> earnings had been good. and the guidance for the fourth quarter with the exception of industrials has not been bad. we are kind of slowly rolling over. october down almost 1.5%. there are a couple of problems. one is oil. this is the exploration production group. when you can't get oil in the range everybody wants to see it in that is a problem. you have been talking about those rising bond yields. retes have been rolling over.
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we have seen other groups rolling over. the retes are down 7%. that is telling you there is a problem. some of them a little bit disappointing. finally we have some concerns in the retail space. look at names like o'reilly today. there was disappointment in terms of guidance and all the automotive suppliers are down big today. and then you see stocks like nord strom and dillards. >> consumer spending did not have a good run. you mention the slow motion down trend and then the vix which has been tame. a lot of people are saying is this going to be something we are bracing for? a little more drama maybe because of yields. >> october is the most volatile month. this is the awful month for stocks. it turned out not to happen. the only thing that moves the market is volatility around. that is when volatility spikes up. >> maybe next week we get some of that when they do meet and
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have to talk to us. appreciate it. thanks very much. ringing the bell here. community financial corporation. for the next hour of "closing bell" here is kelly. welcome to "closing bell." i'm kelly evans. going to be a busy hour so buckle up. here is how we are finishing the day on wall street. dow dropping 26 points. the s&p giving up about six points for its part and declines for the nasdaq dropping 34 points about two thirds. the worst performer of major three averages today. it will be a busy hour. our reporters are standing by, all five of them. covering amazon for us.
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john fortt alphabet. julia boorstin is monitoring linked in. we will bring you those as soon as we can. we will see you in just a moment. coming up academy award winning film maker ron howard joins us here to discuss his latest movie and the other projects he is working on making his maiden visit to the new york stock exchange. we have senior markets commentator michael santoli. stephanie link and fast money trader guy adami may swing by. i love the analogy of a yo-yo on a tight string. >> it seems like you go up a little bit in the morning and sell off to the flat line and it has been vice versa. i think some of these are posing -- earnings do have winners and losers that offset. the bond market gaining attention. the yield is going up. i don't think anyone is that
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upset by 1.84% but they worry that somebody else might be squeezed by that. i think that is why the nervousness. maybe we will be saying we dodged the bullets in accept and october and didn't have a nasty sell off in hazardous months. >> nervousness for big tech investors this afternoon. we have amazon shares on the screen there. the flash for the earnings and we will have more looks like 52 cents foreps versus 78 cent estimate. amazon shares dropping about 8%. coming into this twitter this morning was okay. tesla was okay. >> expectations of technology up pretty high because they are viewed as interest rate combinationi
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combinationism. that is the highest level technology seemed to be immune to these macro things. we will get more detail on amazon. >> we will see if alphabet shares are moving around. theireps flash looked like it was a beat on that one. shares are moving around. we get more information in just a moment. >> that's right. we did get amazon earnings. it was a miss on -- >> revenues today $2.7 billion
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versus 32.69 billion. this is a rare beat for am -- rare miss for amazon on the bottom line. they are down about 4.7%. we are digging through the press release right now. we were looking at cloud numbers and that is something we want to see. also prime memberships also likely to see follow through on prime day which was in july. we will look through this. we will be on the call, as well. as i mentioned this stock was priced for perfection. the expectations around this company have been absolutely huge. a miss like this, investors we look through this release. the things you want to look for are cloud numbers.
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>> shares down about 6%. let's flip it to alphabet. >> these look pretty good. >> the street consensus. $8.63. overall paid clicks were up more than expected. looking to be up 24%, up 33%. costs per click was a miss mpt it was down more than the street expected. continue to look through and pull out from the report card. >> i can't tell a lot of details. 21% on the year.
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there was more on amazon than alphabet. i think alphabet was more popular. you can get around the valuation. it was reasonable given what you are going to get on growth. >> the story about the one guy on the street who put a sell on alphabet. most people feel pretty comfortable with the stock. >> and the valuation. i own amazon. it is hard for me to get my arms around the valuation. you have to do some parts analysis. one thing you have to view amazon is a little more longer term secular play. the quarters to quarters are going to be very volatile. they are only 10% penetrated in cloud and retail. they have the world ahead of them and they will continue to invest and spend and grow. so some quarters are a little more heavy on the investment side. i really want to get through details to give you more analysis. from the long term point of view these results won't change my positive view.
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>> you might have had people bracing for a number that maybe wasn't so great anecdotally thinking. i think the whisper was above a dollar. i think people thought there was upside possibility for what they were going to report. also, overloved on the street. 35 buy ratings. it seems like a time when you have to reevaluate how far the stock has come. >> the guidance according to street account is revenue between 42 and 45 billion. the low end is lower than what the street was looking for. it is important order. just to go back to they have been doing quite well lately. the operation piece has been there. the numbers have been there. it almost was a signal for a lot of people who couldn't have been in the stock that they could get involved and now it is a bit of a reminder. >> you say that people wanted to get into it and felt more
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comfortable. that makes me a little more nervous as an investor. there is a lot of love there. you want to step back and take a deep breath. if this stock is down 7% i'm a buyer because i believe in the long term secular growth of this company. the penetration rates are such that they have a lot of room to grow. cloud is in its infancy. they are number two player or number one player. i think you have that as a big tail wind and retail. who is not buying on amazon retail. prime is a very big part of that story where people spend double triple than they do if you are not a prime member. growing that prime membership is very important. >> i feel like i'm ordering every 30 seconds. let's go to expedia's results. >> reporting third quarter earnings missing street expectations. wall street was looking for
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$2.47. revenue topping expectations at $2.58 billion although bookings a bit disappointing for the third quarter. $18.59 billion below analyst consensus. one reason we are looking at shares of expedia down by around 2%. for now back to you. >> want to go back for a second to amazon and to apple. so these are names that are not only important just because they are interesting stories. they also are such a big part of the market. how is this going to effect? apple feels more relevant maybe to overall market point of view. >> i think it gets lumped in. they had been backing off the past couple of days. you get the feeling sometimes people start to hide in the big very long growth stories that you can get comfort with as
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steph was describing. with this pullback if this is what we get you are giving up about two months worth of upside. this was record high at the end of august. so just to say this is not exactly a punishing review erebuke of amazon's quarter. >> let's go to linked in. julia boorstin has results. >> linked in's earnings beating estimates the company reporting 1.18 in adjusted earnings per share versus estimates of $1.91 a share. just a hair better than expected. the company which is selling to microsoft says it does expect that transaction to close as planned by the end of this year so they are not giving guidance as a result. >> understandably. let's get to meg tirell with more on amgen. >> earnings per share coming in
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at $3.02 versus estimates of $3.79. company raising 2016 guidance for adjustedeps to $11.40 a share to $11.55 a share up from previous guidance of $11.10 to $11.40 and raising to $22.8 billion for 2016 revenue. seeing the stock down slightly as product sales didn't increase in the quarter. >> thank you. so we will come back to a couple of these. briefly on alphabet going down the list and looking at how they did. paid clicks up about 33% versus estimate of 26.5. cost per click was down 13%. what does that tell you? >> that is always the way it goes. it is that the cost was more
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than forecast. the supply is unlimited of clicks. that is why the price goes down. i think it is on target. this is close to all-time high for alphabet the way it was indicated before. so it does seem as if it is pretty much on parth. i don't think it is a reason to change your opinion. what is interesting is they are one of the big tech companies sending signals about being more disciplined on cash and capital spending. maybe that will be a part of the story that comes out. >> i think the cfo is very good in terms of giving out information and just being more transparent. that is something that alphabet wasn't for so many years. you have this transformation happening. i want to get back to the point of the fang stocks. so for the first part of this year one of the fang stocks after an amazing year last year. the summer time came and we plowed back in. i agree people were hiding in them.
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there was growth and there was value on relative basis on all of the names. i'm not an owner of netflix y. say this in the most recent couple of days we have earnings reports from something like service now. we have very good security software in pockets. there are other places that people can go to in tech. so i think people forgot that. the tech picture is broadening out. let's get deeper into amazon with more details on the quarter. >> so we do have numbers for the cloud business. amazon is and has been such a leader with amazon web services. here the numbers look pretty good. 3.23 billion versus 3.13 billion expected. that is growth of about 55% which is in line with what analysts were expecting. you see that the stock is down more than 6%. we are digging through the numbers and trying to figure out
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why that is. there was the big miss oneps. want to mention within the guidance that operating the company says is expected to be between 0 and $1.25 billion. it's not unusual that there is this huge range. amazon did that last quarter, as well. that would be compared to $1.1 billion in the fourth quarter last year. amazon web services has been so crucial to amazon continuing to grow at a slower pace but still a very decent pace. 55% maybe if you compare that to microsoft's cloud growth which was growing at more than 100% in the last quarter. it doesn't look quite as good but it did come in line with expectations. we continue to dig through the numbers and get on the call shortly. >> thank you. final parting word? >> revenue estimate was almost bang on what came in which is bizarre for a 32 something run
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rate. i have a feeling everyone is assuming if you are not blowing away the top line and growing as fast as you are that is one reason. >> this stock usually reverses on the call. we have to listen to what they have to say. there are so many inputs to how the stock really works. we just get the details. >> so many business lines. we have much more reaction to these earnings from amazon and alphabet coming skpup how you should be trading the stocks. and apple hoping the new mac models can jump start the stock. will these new devices be winners with investors and consumers? gnat is ahead on "closing bel"." what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods?
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the value of capital is to create, not just wealth, but things that matter. morgan stanley
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proposition 61 is a very, very important step forward. for tand i thank the people of california for putting it on pharmacepathe ballot.ry. e... keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing, 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.
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it is time for the pharmaceutical industry to stop the entire nation is looking at california. let's go forward together. thank you all very much. here is a look at shares of google. shares down about 5.5%. alphabet shares less than 2% after posting results. joining us with reaction to number numbers i wanted to start with amazon in a sense that you may have at this early hour about what is happening with growth and profitability. >> top line looked strong.
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bottom line used to the last few quarters beats on operating income. this looked relatively in line. q 4 we are looking for closer to 2 billion. we think investors looking for a little more on the bottom line. >> michael, what about you? do you have deeper sense of why this might be happening? >> i agree that the top line is probably most important thing here. the last two quarters for amazon have been really strong. they blew away numbers both times. this quarter is very good. it's just not as good as the last couple. the thing that jumped out to me was aws revenue growth which was 55% and the margins expanded a little bit. that is really important because in a few years aws will be half of amazon's earnings and a big growth driver. >> just to follow along that point. do you see the day if it grows continuing at this rate and it
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is about half of the company's earnings are they going to be hounded to separate them out? it is noisy to analyze the business. as long as core business is doing well amazon will be able to deflect any activist. it is tightly controlled company. i'm not sure what is thought longer term about whether there are synergies. i think it will largely be his call over time. he does tend to make the big decisions from what we can tell. >> you touched on margins obviously being the disappointment in the quarter. the reason that margins is disappointing is because they are heavily investing. do you buy into them getting into hardware and some of these other noncore parts of the business that kind of drag down the good stuff? >> so we think near term amazon
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did think about investments up over last year as well as fulfillment capacity in q 3 and into q 4. not too surprised by a little lower operating income than expected. that said i think from a long term perspective we want amazon to invest aggressively. clearly the bets have been the right bets over the longer term. >> just reading from press release 3.4 billion in trailing 12 months compared to 637 million. that is moving in the right direction. how important is that metric? >> i think it is pretty important. amazon has been sort of managing the business to low single digit operating margins and cash flow positive for some time as referenced earlier. they are making a bunch of investments across a wide range of new products and services. i don't think that is going to
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change anytime soon. it does create a bit of a risk in the stock because analysts like to forecast profit margin expansion and that hasn't happened for amazon. over the last year or so the shareholders have become accustomed to that so i think this weakness will be short-lived. >> i can't believe no one has mentioned that there have been 250,000 marriage proposals to alexa according to jeff beszos. let's move on to alphabet. talk about the quarter here. the stock doing better on these results. what do you see happening to the business? >> google has a model of consistency here continuing to benefit from mobile as well as mobile product listing ads. that has been a nice driver. we look at the results i think other we expect to bring in expenses. you see operating leverage improvement going forward here. with the combination of 20% plus
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revenue growth stabilizing to improve will drive potentially multiple expansion. >> let's bring in john fortt with a little bit more. >> i don't know that we have mentioned google's board authorized $7 billion for buybacks. they exhausted their previous amount. that is notable with this. also, a representative of google pointing out things where it comes to google fiber. there were stories out a blog post about some pause that they are taking in expansion in some markets where they operate but google not planning to pause the entire program and plan to continue to invest in fiber and seeing opportunity. it does sound like there is retrenching. the reason why costs per click were down is because of the trend with youtube just because
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of the way that youtube true view ad product works it tends to as it is a greater share of advertising drive up paid clicks and drive down costs per clicks. mobile also continues to be a significant driver along with youtube. overlap because a lot of viewers are on mobile. all of those engines for google and overall alphabet continuing to work well. >> thank you. you want to respond to all of that? $7 billion buyback? >> i think the key number for google was the 23% google websites revenue growth is the core google business. it includes youtube but includes the core search engines. that is important because this quarter google for the first time was lapping some really big ad product changes that went into place last q 3 where they added basically more advertisements. so the fact that they can power through the growth this quarter is really impressive.
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i think that the buy back outlook is important. people are looking for more balanced return profile out of google now, a little bit of growth and margin and a little bit of capital return. i think it all makes sense. >> guys, thank you both for joining us. talking alphabet and amazon. and apple is meanwhile launching a new line of mac computers. we will tell you what is new. and it was the biggest ipo of the year. but chinese delivery service zto express kind of flocked closed down about 15%. find out whether this is a sign of trouble for the ipo market. some things are simply impossible to ignore. the strikingly-designed lexus nx turbo and hybrid. get up to $5,000 customer cash on select 2016 models. see your lexus dealer.
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you can even enroll right over the phone. don't wait. call unitedhealthcare or go online now. ♪ apple held a big event to unveil the new line of macs. josh lipton brings us the highlights. >> apple ceo tim cook was on stage right behind me here where he introduced today the thinnest, lightest and most powerful mac book pros yet. >> the lineup are the best notebooks we have ever made and they are the most advanced note books ever made. we couldn't be more excited about having our best product lineup ever heading into the holiday season. >> now these new mac book pros run sierra.
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siri also comes with the mac. among new features a multi touch keyboard when he uses the keyboard the controls change. the keyboard short cuts for e-mail are different than short cuts for surfing the web. battery life up to ten hours. the 13 inch with traditional keys starts at 1499. the 13 inch version starts at 1799. the 15 inch version 2399 and those ship in two to three weeks. q 4 apple did say mac sales slipped about 17% but if there is strong pent up demand for the new computers perhaps that could be a positive surprise for investors over the next few quarters. back to you. >> those are some pricey computers, josh. the touch part looks so interesting. are they the first people to offer something like this in
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terms of a keyboard? >> i think what apple is trying to do is bring touch functionality and really that touch additions rather than the touchscreen. i think what is interesting you look at the pc industry. the great king saying the thrill is gone when it comes to pcs. we are a long way from 2002 when the i mac made the cover of time. there are a lot of folks out there specifically professionals who are looking for high quality computers and cook is hoping he can tap into that with what he unveiled today. >> i know this is small potatoes. i would love to hit the little emoji. >> the whole thing is a
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touchscreen. 10% of revenue for apple. i think they want to maintain. >> small part of overall total revenues. a lot of reason it was down 17% in the last quarter is because of pent up demand waiting for the new mac. these are loyal customers. i think the replacement cycle will be strong for the company. >> i look forward to reading early reviews. it is time for a news update. a big bust in a common irs scam thmpt justice department says it charged 61 people with stealing more than 3$300 millio. officials say the group used call centers in india to pose as irs agents demanding money. the irs will never contact you over the phone. the federal communications commission rolling out new rules saying they are protecting consumers. the change will force broadband providers like at&t, verizon and
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comcast to ask for permission before using customers' information. the first flakes of the season are falling across parts of the northeast. southern and central new york as well as connecticut got a dusting of snow which stuck to the streets. it appears that halloween has gone to the dogs but in a good way. these four legged friends strutted their stuff in key west during a whacky costume challenge. entries included donald trump, lobsteres, a treasure chest and lions and tigers and bears. that's the cnbc news update. >> that's a real tiger. >> donald trump dog was hilarious. >> it was. you mentioned emojis. one of the hot items this christmas is going to be? emoji slippers. >> really? >> a lot of interesting places there. >> there is the lobster. >> i guess i got to get --
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that's not a cat. >> it's a dog dressed as a tiger. >> that is fantastic. >> i'm not sure -- that is the treasure chest. >> that dog was something else. >> that is the lion. >> i thought that was donald trump. >> see you later. >> see you later. >> chinese delivery service going public in the year's biggest ipo. the celebrations ended soon after ringing the opening bell. whether the sinking stock is a sign of trouble for the ipo market. famed film maker ron howard talks about the future of hollywood and why he is backing a startup trying to allow people to watch new movies in their homes. we are back in a moment. miles per hour. ar is 0 to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere.
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welcome back. let's check out movers after hours. looks like amazon shares were down about 4.5%. expedia up about 7.5%. amgen is down about 1%. let's send it over to seema mody for more earnings. >> health care i.t. firm in focus missing expectations. second quarter results included
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noncash pretax good will impairment. charge of $290 million. second quarter results impacted by a softer pricing environment in u.s. pharmaceutical business within distribution solutions coming from the press release. earnings at $2.94 adjusted below expectation. revenue at $49.96 billion. the company, the board of directors authorizing a new share for repurchase buyback. shares are on the move here after hours. they were down as much as 8%. seems to be coming off the lows right now. >> wonder if the buyback took sting out of that. today marked the first day of trading for the year's biggest ipo at the new york stock exchange. zto express closed down 15%. bob pisani has more on the action. >> we were so excited. $19.50. a dollar above the range. everyone said this is going to be great and then opens at 18.40
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and closes at $16.57 at the lows of the day. everybody was staring at it. number one, this is a very tricky ipo to price. global ipo. you have to figure out how much u.s. demand is there for people wanting to buy in. the asian demand. morgan stanley will market this. how much real interest is there? obviously, i think they priced it high at this point. the other thing is we saw 20 to 22 early on and then it was 19 to 20 and then it is like on the verge of making money and a lot of people simply said i don't want to stick around. maybe there were weak hands and difficulty pricing. >> zto being a chinese delivery company. does a tremendous amount of volume with alibaba. >> alibaba is 75% of their
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shipments. but the fundamental story is very intact. americans have expressed a lot of interest in getting access to the chinese consumer. it has been hard to get other choices. this is not a chinese food company. this is a pure play on e commerce growth. if you believe it is growing and most people leave it t is not a bad idea. i don't think the fundamental problem is. this might be a question about the chinese economy issue. and in that sense i don't think this is a problem with ipos in general. >> because that question will be raised now. >> the chinese economy, how fast is consumer spending growing there. is this particular company right in the middle and could be squeezed. 75% of business is alibaba. sounds like you an outsourcer. coca-cola had bottlers. that is another deal where you don't know how the business is going to develop. >> a lot of competition and a
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lot of these stocks have done quite well on this perception that the chinese consumer was really just in the early innings. it is just that this is a new company. clearly wasn't priced recognize. the book runner didn't get the good feel for what their clients, who they were and if they were longer term. what is your sense of the back log in general for ipos between now and the end of the year? we are hearing it pretty well from when they reported earnings. >> i wish i would see it. we have small ones. i don't see big moves. i'm waiting for the really big ones. you want to settle this whole thing. next week gds holdings, chinese internet data centers. they are coming public here. >> gds holdings, that sounds
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like the most boring name on the planet. >> we'll keep a close eye on that one. >> zto trade when the chinese market is open. >> very good point. if they market it to the names already but remember that tomorrow there may be retailers overnight. that is a good point. >> much to keep an eye on. >> bob pisani covering. alphabet trading higher after reporting earnings. the conference call is underway. we will bring you highlights. he has directed hits like "a beautiful mind" "apollo 13" ron howard will join us live to discuss his latest projects right after this. you are watching cnbc, first in business world wide.
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>> it has been done. it is very visual and a lot of drama. >> so there is inferno to talk about which is the latest in the davinci. do we call it a series? >> these are stand alone movies but they have in common tom hanks playing robert langden and this thing that dan brown does brilliantly which is creates sort of multiple ways of entertaining his readers. i try to do the same thing with the movies which is transport them, create great mystery. i use these fantastic clues so there is a puzzle and the robert langden character and then controversial button pushing idea at the center of it. inferno is i think the most modern and edgy subject matter whereas the others tended to exist a little more in the past, religion, history. they factored into the drama a little more. this is of the moment.
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that gave me as a director kind of the drive and energy to do something very contemporary. >> we were just saying that that formula seems to travel overseas. it has been doing relatively well. >> they always do far better overseas and very international movies. >> is that mostly china? what is the break down pra movie like this? >> da vinci code was opened and pulled and was mysterious as to why it was pulled whether it was controversial as it related to the church or it was a competition issue. we never really knew but this one was accepted and we are thrilled and it opens tomorrow, as well. we will be watching china to see. >> so the global box office is still important in markets like europe and uk and australia. >> absolutely. more than ever and a movie like this speaks to a broad audience
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but american film makers are trying to find ways to make their american stories more relatable and sort of less narrow in their scope. >> what about people watching at home? that venture with sean parker and we asked him about it earlier. in this day and age people love watching at home. why not bring new movies? >> every film maker would prefer for audiences to see it as single sitting up on a big screen with great sound. that is what you always hope for. speak frg myself i watch stuff on my iphone. i watch things at home. i make those kinds of decisions. so when this opportunity came along i feel there is inevitability today and date distribution. i don't love it. what i kind of love about sean parker's idea is that it's limited.
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there is revenue share with the theater owners. i think that it eventizes movies. anything that refreshes audience's sensibility that there are great tv series but there is still something great about the movie that unfolds in a couple of hours and you have the complete experience. i think if you do it at home and get excited about the format you are likely to see it in a great theater, i max or something. >> is it hard to live up to when you do a movie based on a book? is there more pressure to get it to reflect what the book's message is? >> every movie is nothing but pressure. it is. they all have strengths and potential land mines and pot holes in terms of narrative. you do test screenings to see how it goes and try to listen and learn. books are a challenge but it is also double edged sword because
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it is a huge advantage when so many people know a dan brown title and yet my job is to make it a movie movie. and dan brown is the first one to understand that because these books are big and sprawling. he knows what a challenge it can be. he is very, very cooperative and supportive. he is an executive producer on the project. my goal is preserve the spirit, the big ideas that i love and that our creative group loves and readers love and then make it something for the audiences. this is a movie thriller. it's not about just you don't have to have read the book. >> it also seems it was a modern movie maybe in more ways than one. what was it like working with drones? >> that was my first up close and personal experience with drones. that was one of my favorite sequences from the book. i wanted to try to get that
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right. once we edited that together and audiences started telling me how much they liked it it made me feel good. dan brown is excited about the drone action scene. >> you are probably figuring that you don't have to have read the book to see the movie. who probably envision tom hanks in the part. >> he loves playing the character. i never thought i would repeat a character, let alone do anything you could even characterize as a sequel. but each of these have been different cinematic journeys. they're great life experiences. let's face it, you devote a year of your life to a project. it's great to go to florence and shoot, and tom loves it as well. >> what's the biggest money mistake that you've made? >> the biggest money mistake that i made was sort of
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believing in the idea of the sort of long churn, hand it over to a money manager. >> that was a mistake? >> a mistake, yeah. we found that it was kind of, you know, unfortunately, and maybe it's the advise that's we chose, but kind of a zero sum game, more or less. >> wow. so what do you do now? you're looking around at the particul tickers? >> my wife is kind of going to cash. >> is she calling the shots on your portfolio? >> she pays attention, she really does. i've found over the years that the best thing that i can do is work for a living. and i've got a great job and a great career. we invest very, very conservatively. >> last question, what's the next question, then? >> several different things, through imagine entertainment, my partner and i are working on a number of things. we have the tv series "empire,"
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which is on going. a new version of "24." we also have a mini series on national geographic next month called "mars." it's a half documentary and half scripted. it's about going to and colonizing mars. i don't think you've ever seen anything on television like this. and i still have the beatles documentary that can be seen on hulu. >> and also has a theatrical run? >> it's in theaters. i would like to say it's a testament to my filmmaking, but it's a testament to the fab four. >> thank you for making time, ron howard, thank you so much. alphabet is climbing after hours. we'll have the lates frst from company's executives.
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google executives focusing on the cloud, saying on a percentage basis, that is a business growing more than others. google is a lot further behind in the cloud than one might expect given all the infrastructure they have given the fiber and their own custom hardware. the emphasis on that shows that by and large, google executives are saying, steady as she goes, we're continuing to execute as we have in the past. youtube continues to be a growth engine. the true view advertising there accounting for a lot of the fluctuations in cost per click and paid clicks.
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it has a higher cost of revenue, higher acquisition cost because they have to pay apple to get on the iphone. but all those businesses growing well, you see the stock up slightly, more than 1% after hours. >> thank you, john. we'll keep an eye out for amazon's conference call. we'll tell what you to listen for. ♪jake reese, "day to feel alive"♪
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welcome back. alphabet's -- >> guys, so sorry to crash back in. that question about my dumb investments, i remembered a really dumb investment. when i was on "happy days," i got talked into investing in super cow embryos. we were going to get rich. not a dollar. not a dollar. >> you really invested in something like that? >> i'm not kidding. >> whose idea was this? >> i don't know. probably an extra on "happy days." >> say that one more time. their pitch to you was, we have a super cow -- >> we went to a dairy and saw it. they were creating these super could you embryos, they were going to yield super cow. you would invest in a super cow
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and everybody would be rich. >> it all went sour. >> oh, man. >> thank you for sharing that with us. the amazon call is about to start now. that does it for "closing bell." "fast money" begins now. "fast money" starts right now. we've got full team coverage for all the after hours average. john ford monitoring the alphabet call. deirdre will be on the amazon call and meg terrell listening to amgen. alphabet higher in the after hours session, amazon as well as amgen moving lower on their reports. finally we've got bob peck, all star analyst and a man known to sleep with the red phone. he's got his right hand on the alphabet call, the left hand

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