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tv   Closing Bell  CNBC  January 30, 2017 3:00pm-5:01pm EST

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october, really 4/27 is up 17 as well. we're watching big tech tomorrow. that's going to be key for the nasdaq which has advanced most of the major three indices. key day for the market. >> thanks for watching "power lunch." "closing bell" starts right now. big businesses are thrilled what's happening. the stock market has gone up massively since the election. everyone's saying the market will go down. i said, not going down. the smart people know them. the business people know me. they'll know what i'm about. so the market went massively up. >> that was president trump earlier today but right now stocks are actually seeing their worst day of 2017. is this a healthy pull back or is the trump rally really getting derailed? that's the question of the day and welcome to the "closing bell."
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i'm sara eisen in for kelly evans. >> i'm bill griffeth. the president was meeting with various small business ones owners at the white house. we'll be talking to one of the small business owners who was there in the program. energy, financials and technology are among the sectors getting hit hard today. we'll look at whether the pull back is a buying opportunity or a shift in investor sentiment right now. >> the nasdaq is the big under performers. you can see tech ceos in silicon valley speaking out against trump's new immigration rules which sparked protests in airports across the country. someone says immigrants are essential to the tech economy and he'll explain why. >> let's start though, we have full team coverage of the president's moves today and over the weekend and the market reaction to it. eamon javers and deidre has the
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controversial immigration executive 0rorder. eamon, give us some of the hits, runs and errors. >> you played the sound bite of the president talking about the stock market. i want to underscore for you just how unusual that is. presidents typically do not like to talk about markets. the general lines you get from democrats, republicans, markets go up, markets go down. but sean spicer was asked in the white house briefing just a little while ago about this idea of the white house continuing to comment on market activity in real time. here's what spicer had to say. >> we look not just at the ups and downs of a market but you look at consumer confidence and a lot of the other market indicators. this trump presidency brought a lot of confidence back to traders, to investors. more importantly, to job creators. and you look at the number of individuals, the small businesses, the large businesses, the automakers all coming in and saying to the president, i want to be part of
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your effort, your agenda to make the country better, to grow jobs here, to bring jobs back here. i think it's a positive sign. >> reporter: so this white house clearly bullish on markets, bullish on the economy overall. and they're willing to do something that other white houses haven't been willing to do, which is to take credit for the stock market up side. the risk, of course, is that you take the blame for any down side that's to come. clearly this white house has taken a very different approach than what we've seen before, guys. >> eamon, can you dig deeper into the executive orders signed on regulations? >> reporter: sure. >> what do they mean for the various agencies? i know the military is excluded. how difficult does this make life for the epa and health department? >> reporter: it makes them have to choose and sometimes that can be difficult for people who run agencies that issue regulations. under the new executive order signed by the president today, any agency that issues a new regulation will have to identify
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two other regulations that it's going to cut. it's going to have to come up with a cost, a score for the economy for that regulation that will have to make sure that the total cost of the two regulations that are cut is equal to the one new one being imposed. that way they would have a net zero impact on the economy overall. you can imagine that the people who run these agencies will be trump appointees. they will not be passing any regulations that this white house doesn't want to see passed. when they do, they will then have the opportunity to clear out two old regulations. that's going to be something that a lot of business leaders will look favorably on. there's simply too much red tape coming out of washington. the devil will be in the details. the power will be at omb and at the agencies themselves to pick which specific regulations they clear out. that's not been decided. a lot of the timing on this has not been decided as well. a bold statement here by the president today in terms of fulfilling what was a campaign trail promise, sarah. >> yeah. surrounded by small business
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owners and we'll talk to one. eamon, thank you. wall street took a big lag lower after the president spoke after he signed that executive order. bob pa san an pasani spoke more >> the important thing is we've seen the market move up on trump themes, the tax cuts. when he strays the market moves to the down side. take a look at trump and the markets. what's moved the markets, reflation theme, tax cuts, infrastructure spending. when the market stalls out it starts in thing that trump is focusing on other things like immigration policies, trade issues, obamacare. that's what's happening today. the sense that infrastructure may be way off at this point, look at some of the big infrastructure stocks. it all rallies big in the weeks after the trump election. vulcan materials, martin marietta. techs getting hit as well. talk about revising that h 1 visa. that's near and dear to the
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community. then we have other issues in the commodities space. stronger dollar putting pressure on commodities. concern that opec may not cut production quite as much as promised. seeing a lot of the high data energy names that move more dramatically down today. those issues are moving things. one final point, guys, that i would make. the whole issue of tax cuts, the market now realizes a lot more complicated than people thought. it's not just going to be oh, let's go from 35% to 20%, that's what they want. nice and clean. it's not. now they're talking about border tax adjustments and tax deductions. they haven't gotten to repa repatriation of money over seas. the market loves that. it's going to get a lot more complicated. it will be a messy first 100 days. back to you. >> bob, we'll see you later on the close. let's get to the fang stocks and other tech stocks that have been hit hard. this after some of the biggest names in silicon valley weighed in on the president's
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immigration banned executive order. deidre bosa has the story. >> reporter: it could get more contentious. bob just touched on this. according to reports, the trump administration has drafted an executive order that is aimed at overhauling work visa programs. that includes the h 1 b program, the biggest tech companies in the u.s. have long used to recruit top foreign talent globally to the u.s. now apple chief tim cook hit at the heart of this in his internal memo over the weekend. he wrote, quote, apple would not exist without immigration, let alone thrive and innovate the way we do. app willing along with alphabet, microsoft, a.m. ma zorn, netflix have goen into some of the most valuable countries as they have
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powered their business. an overhaul of this program could affect the american tech industry involved. foreign tech workers would go to other countries where they'd be more welcome and companies here could lose out on that kind of talent. it also goes to say that the u.s. could lose out on future entrepreneurs that could be creating more jobs right here in the u.s. so, guys, over the weekend we did see silicon valley react loudest. they rookt reacted first. you'd be hard-pressed to find an issue, more personal, more critical to text thchs than immigration. let's get to "closing bell." the dow was down 223 points at the low of the session. as we've mentioned, if you just joined us today, the worst day for the markets in 2017. michael farr, the president and ceo of farr miller is with us. peter costa is standing by at post nine at the new york stock
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exchange and that's of course rick santelli coming in from chicago and the cme there. peter, i told you. you're the one, the lucky guy, that gets to explain all of this to us, the selloff, the worst day in 2017. is this a response to the executive orders coming out of washington or were we just due for a pause anyway or all of the above? >> i think it's a little bit of both, bill. i think what's happening is that the market i felt was a little over priced given that once somebody has an opportunity or a reason to sell, they're going to sell. and i think that's what you saw. you have a lot of push back about this immigration ban and i think that that probably stuck the administration a little bit so people are, you know, want to get out, try to get out at the top and that's all you're seeing right now. i don't think this is a pretense for what's coming up. i think it's just an opportunity to get out and a reason to get out. >> michael, do you agree? do you think this puts a dent at all in the optimism that has
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fueled the trump rally, the dow 20,000 for the first time ever just last week? >> maybe yes and maybe no. i mean, when i have been on you all have been kind enough to have me on in the past few weeks. i've suggested that there was a little too much optimism that everything with mr. trump's proposals, president trump's proposals were going to go too smoothly and things didn't go smoothly in washington. i think this is a sign of mismanaged messaging over the weekend. the reaction in washington was he did what? what did he do? he did what? now that's a bad reaction in washington, which means the message wasn't sent properly. if people had been prepared whether they liked it or whether they didn't like it, wall street can accept that, but wall street really reacts to surprises and a lot of people were surprised. when you look at the hb 1 visa program the most recent data show that about 80% of them went to india. certainly the executive orders over the weekend didn't really affected -- wouldn't affect hb
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1. it's what may happen to them and, again, we're dealing with uncertainty. so this is a hiccup. i don't think it's a reversal in the market yet. it could become one, but not yet. >> that's what mark cuban said earlier. the communication error in this. >> yeah. he said everything just felt kind of rushed to him. rick, of course i'd be interested in your thoughts in all of this. i'd also mention we're now exactly 11 minutes into the program and we're just -- i'm going to mention for the first time we have a fed meeting this week, too. >> hello. >> yeah. >> yes. >> what do you see the markets -- right? what do you see the market responding to right now? >> you know, i think that it's very unusual. i mean, beyond unusual. rob sterling type unusual. to see a politician campaign, have a variety, a handful of things he said he was going to do and he's doing them. personally, i'm not saying what i agree with or what i disagree with, but nobody should be
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surprised. to think washington's surprised i think is -- richard or michael just pointed out is very fascinating. i think there's going to be good things and bad things with regard to what wall street or investors think about the current administration and i think that's going to end up occurring a lot in the future. >> rick, i don't think -- i don't think that washington has a lot of experience in seeing politicians who actually show up and do what they said they were going to do. i mean, it's kind of a shock. >> exactly. it is. there's a wonderful op ed, i think it's called the wax president that's in the journal today that really nails it. so i personally -- you know how much i love politicians, gang. there's something refreshing about this. does that mean everything in this administration does is going to being great? no. it's going to be a busy one. as for the fed meeting, central banks are going to play a huge role in what happens in 2017.
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interest rates are going to play an outside role in giving foreign exchange more volatility. anybody that doesn't agree, it's not boon deals, even at 47 basis points or close to one year highs. think about it, portugal traded 4 1/4. that's the highest as march of 2014. italy hovering in the low 230s, highest yield since the summer of 2013. there will be a lot of recalibration going on of rates. i think you're going to see central banking globally look a lot more like our central bank at 2017. >> now you're singing sarah's song. >> it all starts this week. bank of england, bank of japan and the fed meeting. >> and the impact. >> all taking a back seat. >> but, look, i think there is one real risk out there that i don't hear people talking about yet, phil and sarah, and that is -- >> very quickly, michael. >> what happens when the president wants to see fiscal stimulus and the federal reserve starts tightening rates and they see each other as opposed.
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>> that's a bridge yet to be crossed. we'll see what happens. >> thank you, guys. >> we'll cross that bridge when we come to it. >> see you later. >> see ya. >> no tweets are the fact. >> so far. it's early though. right now the dow is down 175 points with 47 minutes left in the trading session. we were down 223 at the lows. and energy is actually the worst performing sector right now on wall street dragging the market down with it. up next, we'll discuss what's behind this move lower. some of these big names like conico phillips getting slammed. many americans protesting the president's executive order banning immigration from some muslim countries for 90 days. we'll hear from someone who says that could end up hurting the tech sector and the broader economy. still to come on "closing bell." m
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dow down 180 points. the dow, s&p and russell 2000. nasdaq off the worst levels of the session. still down a full percent. this is the worst day for stocks since the election. index of small caps which have
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been such a strong performer after the election. so are financials. >> while the big three at the top were setting all-time highs last week, the russell was not. now it's leading to the down side. that's troubling. >> what does that tell us? is the trump rally running out of momentum or a pause in the action. that's what we're trying to figure out on closes action. >> fitbit is the worst percentage performers on wall street. it was down 13, now 17% decline with the fitness tracker device maker slashing its revenue guidance and announcing it will cut 6% of its work force because of weaker than expected holiday demand and increasing competition from smart watches. it's been a very rough ride for this company since it came public back in june of 2015. the stock is now down nearly 80% since its ipo. i mean, we all know, it's a pioneer in this wearable tracking devices fitness devices, but there's so much
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competition right now. it's been losing market share clearly. >> and a little faddish. lost 3/4 of its value in 2016 alone. potentially the ultimate leading indicator could have been the fit bit sitting in your drawer. >> that quickly is becoming a collectible item. >> i've filled in enough that i've heard you talk about this already. >> that is the original fitbit. now on to the second or third generation now and that's still in mint condition, by the way. >> why don't you use it? >> i don't think it's been charged in years. >> why? >> try to enter in all the food you had to eat to do the dietary stuff. >> i'm not a fan either. >> we have a market flash on mylan labs. dominic chu with details. >> bill, sarah, what we have mylan shares a little bit lower but off their worst session. now 1 3/4% on accelerating volume. this after bloomberg headlines coming out saying that the company has received a request again from information -- for
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information from the government in that there could be a -- or that mylan could be facing a u.s. anti-trust investigation over its epipen practices. those headlines again coming out on bloomberg right now. it did move the stock. we are trying to figure out whether there is anymore to the story. we have reached out to mylan for a comment on this. we'll get back to you. right now meg turrell is working the story. the stock did move. we'll bring you more details after we know more, sarah. back to you guys. >> watch the stock down 1 1/2% right now. dom, thank you. 40 minutes to go before the closing bell on wall street. checking in on the dow, s&p and nasdaq again. we are in selloff mode on wall street. worst day of the year so far. nasdaq down a percent. the dow down about 172 points. worst performing groups are energy and materials on the s&p. president trump taking aim at the dodd frank financial reform law again this morning. >> dodd frank is a disaster. we're going to be doing a big number on dodd frank.
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>> so why are the big banks among the biggest losers on wall street tomorrow with that kind of talk coming out of washington? we'll talk about whether this is an opportunity to buy the banks on "closing bell."
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a down day on wall street. if you're just joining us, where are you been? the worst day before this the
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dow was down 23.8%. as you can see, the nasdaq is down 1%. the russell down 1 1/3. the dow and s&p not far behind. >> all 11 sectors selling off. this is broad and it is deepening. staples and utilities fairing the best. tech stocks tumble. let's send it out to courtney reagan with more on the individual movers. >> we are off session lows at least. we hit the session lows down more than 1.2%. if you look at what some of the biggest individual lagers are, it's those big tech stocks that we talk about often, the fang stocks, facebook, amazon, netflix, apple. they have come out against the latest executive order. we know that many employees for those tech companies are from
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foreign countries. they have a number of foreign workers and if there is any further restriction on the h 1 b visa, you can see facebook is down 1% and alphabet or google down pretty sharply there in the day. even beyond the big tech names look at names like cognizant. that's a name we don't talk about that often. that's an i.t. firm. that also could be a company very much affected by changes in the immigration law, either the current ban or anything that is to come. but also american airlines. we know that there was a lot of hubbub at the country's airports around the weekend and american air lines is actually one of the big jest lagers on the nasdaq 100. bill and sarah, back to you. >> a lot of the transportation stocks are down sharply. dow transport average itself is down 140 points right now. >> courtney, with the tech stocks in particular, clearly they're in the news. some of the ceos voiced opposition to that order.
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you're into a week of heavy earnings when it comes to technology. they had been leading at least in the last few weeks when it comes to the rally. there are other factors here at work, aren't there? >> that's absolutely right. perhaps we'll hear more from the ceos. obviously we'll hear more about the business fundamentals. maybe we'll speak a little bit more about the policy. perhaps give us a little bit more insight about how the current policy or the new policies could be impacting their business and that they have these open conference calls where they're able to speak whatever it is they would like to speak about affecting the company. there's a lot more for us to find out about what's going on financially with a number of these companies to come. it's going to be quite a week, i'm sure, just as last week was. >> oh, yeah, the conference calls are going to be -- they're always required reading according to jim cramer for everyone now because of the trump comments. apple tomorrow. courtney, thank you. up next, we will speak with a leading trader about what's behind today's selloff and where the market heads from here.
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also, the white house is reportedly debating whether to ramp up antitrust investigations against alphabet. how that could affect the tech giant stock coming up on the "closing bell." yo
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what a great intro that was just now, wasn't it? can we do that again? >> last week you said you thought the rally we were experiencing was the second leg of the trump rally. what do you make of today's selloff here? >> well, i think there's certainly a number of potential reasons for it. but i think if you put things into perspective, last week we had new weekly closing highs on the dow, the s&p, the new york stock exchange composite index, the nasdaq 100 and the nasdaq composite. >> right. >> so longer term or intermediate term, i think there's still very strong foundation technically for the market to go higher. the last day of the month is tomorrow. we're getting into a new month,
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probably have a little bit new cash come in. clearly the political landscape is filled with headline risk in both directions. >> and do those executive orders and all, the whole flurry of policy changes, does that crowd out the potential impact of the fed meeting? and we get a job number on friday. >> one thing the market has to get used to is that the fed -- the market's not going to be as fed centric as it has been for the last couple of years because there's a lot of other moving parts that can impact the direction of stock prices in addition to the fed. >> very good. thanks, tim. always good to see you. appreciate it. sarah? >> the dow down 167. time for a vik news update with sue herera. >> hi, sarah. here's what's happening at this hour, everyone. canadian prime minister justin trudeau speaking to parliament in the aftermath of a mosque in quebec which killed six and injured 14 during an evening prayer service. nbc news has confirmed a single
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suspect has been identified. >> canadians will not be intimidated, we will not meet violence with more violence, we will meet fear and hatred with love and compassion always. >> in washington outside the supreme court, faith leaders and civil rights activists protesting jeff sessions nomination to be attorney general. they say he has a long history of supporting discrimination and oppression. his confirmation vote is scheduled for tomorrow. with 500 days to go to the start of the 2018 world cup, organizers unveiled a giant countdown clock in russia. the nearly 10 foot clock at the wi-fi hot spot visitors can use to share their photos near the landmark. that's the news update at this hour. i'll send it back downtown to you guys, bill, sarah. >> sue, thank you very much. as you probably have heard by now, many tech ceos from tim cook, elon musk have been
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speaking out against president trump's executive order banning immigrants from seven muslim countries from entering our country for 90 days. so we're wondering what happens now. >> how does it impact the relationship between the president and silicon valley and tech stocks. joining us now is a distinguished fellow at carnegie mellon university and author of "the immigrant exodus." welcome. nice to see you. >> good to be on. >> so one question we're asking here today is why the ceos felt the need to speak up about this action. do you think it's because of a values argument, it violates the values of them, their employees and silicon valley at large? or is this a big threat to their business? >> it's a threat to their business and their employees are terrified. you have to realize that more than half of silicon valley is born overseas. this is the most diverse place
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on this planet practically, and a lot of people here are on temporary visas. what happened this weekend was that they realized that even if they get green cards, permanent resident visas, that they could still be ejected from the united states and no one was aware of this. this is sending shock waives through the system. i've had two or three dozen people contact me over the weekend asking if they should just go back home, give it up, they've been waiting 5, 10, 15 years for their green cards. now is it worth it? even if they get their green card, if trump decides he doesn't like hindus anymore, he doesn't like mormons anymore, he doesn't like people from pakistan or india, bangladesh -- >> i'm not sure he's saying he doesn't like them. >> we were talking about this earlier today. are people protesting an executive order that has yet to be signed? the president's executive order talks about tightening the vetting process out of those seven countries to improve security here in the united states. he's not talking about h 1 b
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visas, he's not talking about economic issues, he's not talking about barring people who are qualified into the country and work for these technology companies in silicon valley so are they getting ahead of themselves by protesting what has yet to happen? what do you think? >> it was clearly a muslim ban. this was targeted at a religious group more than anyone else. the fact that people with green cards now are stuck at airports. these are shocks that hit silicon valley, that it could be them next. no one is fooled by this 27 companies, we're going to see how it goes. no, people are taking this very seriously here. >> the administration has fired back and doubled down and said this is not a muslim ban, it only applied to seven countries that are majority muslim countries. >> and people with green cards can get in. >> can now get in. >> they've clarified that now. >> even if their family members cannot, which is clearly a concern. how much talent is silicon valley really sourcing from
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these seven countries, syria, iraq, somalia, some of the others that are actually part of this order? >> they are a small segment of silicon valley, but the anti-immigrant message is what has terrified everyone. again, you have mostly immigrants over here. really, it has shaken up the valley like nothing else. they are getting comfortable with the silicon valley. that's why the ceos met with him. everything was calming down over here. this weekend there are shock waves that went to the system. people are talking about going out and protesting. it's really -- you know, you have to speak to people here to understand the mood. it's quite bad. >> how would you protect the united states from terrorism? do you disagree with the strategy to try and step up the vetting process in those countries where it is most often the case that the terrorists
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who, you know, act in this country have either visited those countries or they are from those countries? so, you know, i'm just trying to get a sense from you what you think the solution is if it's not what donald trump has signed into -- with an executive order over the weekend here. >> you know the shocking thing is the seven countries that were named, none of the terror attacks that have happened in the united states since 9/11 were from those countries. the countries that did send the terrorists here, saudi arabia, pakistan, so on, they weren't on the list. conveniently trump has business interests in those countries. we didn't even target the right muslim countries with the ban. that's what the crazy thing about it is. pretending this is going to reduce terrorism, no. it is fueling terrorism. it's scaring off skilled immigrants. it's scaring off people from all over the world. it's making america look like a banana republic. you have no idea what damage this has done to america's reputation worldwide, this one
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act. >> the view from silicon valley, there are people on both sides, vivew. from carnegie mellon. little over 20 minutes to go before the closing bell. stocks lower. well off the lows. dow's down 167. taking the most points off the dow, goldman sachs. >> is it today again? >> goldman sachs and some of the oil majors as well. president donald trump in harsh rhetoric for lockheed martin in the past over the cost of its f-35 fighter jet, but today he actually praised the company in front of reporters. we'll tell you what changed and what it means for the company next. and could there be antitrust issues with alphabet under this new administration? we're going to talk to an antitrust expert about the issues the company could face in the future coming up.
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we mentioned earlier that energy stocks are the worst performers today as oil moves a little bit lower here. >> joining us now is had a lean lacrosse, managing director of the markets. welcome. >> hello. >> why are we seeing a lower move today? >> the concern is where the price is going to end up.
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we've seen a big jump in rig counts. we've seen a big increase in drilling in the u.s. and there's a concern that u.s. production is going to overwhelm this opec deal and you're not going to have firm prices in the 50s. i think it's related to concerns where the price is going to end up. >> we have seen a huge increase in the rig count the last few weeks here. do you think that's going to -- i mean, and in part because the price has gone up, profitable again for these guys to start pulling money out of -- pulling oil out of -- do you think that will continue? >> i think the permean is profitable in this type of price environment. certainly fears about all the production coming back in the u.s. is that capital prices why we don't think we're going to be at 60, $65 in the next couple of months. but i think this is really a permean story for now in order to really get drilling activity back in the eagle fold, we think there's a $60 price environment. certainly the rig count rise makes people nervous about the capacity of the u.s. to the
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surprise to the up side. >> you hear president trump constantly getting this country's energy production going, tapping into the natural resources. he wants to build the pipelines. he's already signed an executive order last week on that front to start construction. >> border tax. >> add it all up and what does it mean for the price of oil and for these energy countries as we start to see the u.s. produce a lot more. that's also bearish for the price you might think. >> you could argue it would be bearish for the price as well. when will these things be implemented. you can open up federal lands but will companies drill there in this type of price environment. i think there's going to be headline risk in terms of the story about being overwhelmed with new u.s. production. the time before the barrels hit the market i think is a significant lead time. we'll need to see higher prices before you get drilling activity. >> before you go, you've been watching gold as well. you think gold's creeping ever higher here, don't you? why? >> one of the things i think to
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watch with gold and why we like it for risk overlay is really the sort of unstable geopolitical world we're in. if we see potentially trade war with china, that's more supportive of gold. something with north korea, missile touch. it's good for a risk overlay. >> although it's only up 7% over the past 12 months. you could argue many political shocks concerning the election of donald trump. >> yes, i think actually if we think about something, the trade policies, i think that is a new development we're going to be watching. >> always good to see you. thank you. >> thank you. >> from rbc joining us today. president trump praised lockheed martin today claiming the company is making moves to cut costs of the f-35 fighter jets. morgan brennan has the details. what prompted it? >> we've got president trump saying lockheed martin's next slot of joint strike fighter
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jets will be cheaper. have a listen. >> look at what's happening with lockheed. number one, we're cutting the price of their planes by a lot but they're also expanding. ultimately they're going to be better off. we cut approximately $600 million off the f-35 fighter and that only amounts to 90 planes out of close to 3,000 planes. >> so that deal which is in reference to lot 10 is anticipated by month's end with a price expected to fall below $100 million per plane. trump praising the contractor saying he, quote, appreciates lockheed for being so responsive, but adding that he also appreciates boeing for, quote, coming in and competing in the process for future planes. now that's in reference to boeing's f-18 super hornet which the pentagon is reviewing as a potential alternative to the f-35c. lockheed says we share his commitment to delivering this critical capability for our men and women in uniform at the
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lowest possible cost to taxpayers. we're likely just getting started here. i don't mean lockheed or boeing. even as the president vows to rebuild the armed forces, this is one of the executive orders he signed. he's promising to save, quote, billions and billions and billions of dollars in contracts across the defense sector. so this could get very interesting and i would not be surprised if we hear other contractor names get thrown into the mix as well. guys? >> no doubt. morgan, thanks very much. >> watch the tweets. more breaking news on mylan labs. meg terrell steps in. >> we've heard back from mylan after a bloomberg report sent the shares down lower earlier suggesting that there may be an antitrust investigation into practices around the epipen. mylan coming back saying mylan received an information request from the ftc months ago. as part of a preliminary investigation. any suggestion that mylan took any inappropriate actions to
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prevent competition is without merit. there has been competition for epinephrine auto injectors with multiple products competing on the market. the stock is coming back down 1% having been down a little bit more before that. we have reached out to mylan to see if they had disclosed this ftc investigation. we haven't seen anything from them before. we haven't heard back on that yet. we'll keep you posted. sarah, back to you. >> meg, thank you for the update. we'll keep watching mylan shares into the close. meg terrell. the broader market has improved a little over the last few minutes into the close. consumer staples just kicking into positive territory. the next group negative. dow down 142 you coming up, very exciting, talking stock with zock and block next. coanacteinth
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very exciting. i don't know if we're going to make this a new segment. it sure has the makings of that that we are calling block and zock. i guess we should do it alphabetically. we have block and zock. there's zock and block on stock. that would be joe zock, tokyo asset management on the right-hand side with michael block from rhino trading partners. a segment has been born,
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gentlemen. >> thank you. >> we're in your hands. >> stocks. why the selloff today, michael? you're the nerdy type that watches the market on a daily basis. i'm going to read tomorrow morning -- i mean that in an affectionate way. >> i'm going to read tomorrow morning in your missive what this was all about. >> thanks, bill. what's going on here is we've seen a little crack in confidence on the trump administration. they're focused on immigration policies that maybe the rest of the world doesn't see as ideal. backtracking. we've come so far so fast. every day we want to hear new tax policy, new pro business policy. we're not getting that. international security, debate that somewhere else. we're here to talk stocks. what are we seeing? we're seeing selloff. the russell 2000 under performing. the nasdaq which has nothing to do with this is under performing. this is money coming off. you know, again, where we are right now, getting into this rally, we're barely 1% off the all time highs made in the s&p 500 futures.
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in the a big deal. let's see what happens here. >> also not seeing the rush in the treasuries, out of the dollar. sort of minor there. want to get your thoughts because you have seen this market as extended. >> certainly. we look at it from a much more fundamental basis. from the ground up. stocks have been ahead of themselves for a while in our view which leads us down to the lower run and the stocks out of favor, unblofd. you talked about a couple of them in the previous segment in energy, company named drill quip. they make well heads, mud hangers new knif you know what are. >> they're out of favor and they have a great balance sheet. >> who do you like? >> i'm thinking of love value things, bond play. i see you should have a nice look. utilities are thought of as bond play. do you think trump is going to stimulate the economy and get into growth. the last consumer production number showed breaking it out.
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that was one of the strongest numbers we've seen in a while. look at utilities here. >> any of your picks here related to the election, to this idea of the trifecta pro growth policies, infrastructure, roll back taxes. >> the most important is taxation, corporate taxation. that will drive earnings. people like what trump is selling now. capitalism is winning. they're looking at international names because we should be able to look at those stocks. if the u.s. economy is moving forward, the international names will follow as well. >> does the tax reform, is that farther down because he's focused on immigration and protectionist policies? >> it could be argued that he's doing the low hanging fruit. it's pretty complicated to effect some sort of tax reform when they're talking about comprehensive tax reform. it's a lot more than reducing a rate from 25 to 30.
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it doesn't take much to get the markets ready. >> the reads and the utilities. the feds this week. won't that take a bite out of those stocks. >> i'm not expecting a rate hike here. >> really? >> i thought it was january -- >> no, it is. we don't get the company there. >> the market's looking for two hikes this year. the projections for three hikes. it's not going to take a lot to get the two to three down to one. everyone said more hikes are coming. we got one. it's not going to take a lot. a couple of weeks ago janet yellen spoke and she talked about wages having a little trouble going higher. everyone ignores that. we had the gdp number. the fed is watching that and they make -- they give any lip service to that in the statement it's going to be seen as
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relatively dovish. you'll see a bond market and it will all come to light. i like the risk/reward. >> very good. i'll look forward to reading all of this. >> you betcha. >> thank you very much. >> i'm sure we'll use the animation one more time because you've been watching. >> zock and block. >> on stock. there it is. >> that's how i do it. >> love that. got our money's worth today. we're coming back with the closing countdown for this monday. >> then after the bel air lines stocks are falling after the computer glitch at delta airline stranding thousands. we'll talk to one industry expert how this could impact the future of the airline industry. a lot of news in that sector. you're watching cnbc first in business worldwide. dow down 129. retime
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vee,st eints two minutes left in the trading session here with the dow down 122 points. coming off -- well off the lows of the day here. at the bottom the dow was down 223 points during the day. this, if you haven't heard yet, looks like it will be the worst day for the bulls at least on wall street in 2017 with this selloff. it hasn't just been the industrial average. look at the transports. they've been down sharply. especially airlines stocks. american airlines down the same thing on united continental. delta, delta started the week with the computer glitch which
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we'll talk about next hour. but the airline stocks with all the chaos at various airports around the world suffered as well. we are well off the lows. oil down a little bit here. you know, with the rig count continuing to grow in the united states, gasoline costs in the last two weeks down two to four cents a gallon on the national average. the expectations that that is going to continue lower as u.s. production continues higher. very quickly, bob pasani, the vix was above 12 earlier. we come off that high right now. >> still not at that 20 level which is where you want to -- >> no yellow flag yet? >> no, not yet. i think the important thing about today is again when the markets -- when trump takes his eye off the big issues of tax cuts, infrastructure, market drifts sideways and to the down side, when you get caught up in h 1 b visas, the market reacts very negatively. i think the markets are starting to realize another issue. the tax cut thing, much more complicated. it's not just going to be clean.
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also from35% to 25%. the total number. border adjustment taxes showing you all sorts of complications to it. i think that means the prospects are going longer than people anticipated. >> bob, thanks very much. we're going out with declines here. the dow down 125 points. a lot to cover coming up in the next hour of the "closing bell." and welcome to the "closing bell." i'm sara eisen in today for kelly evans. bill will be rejoining us in just a moment. let's take a look at how we're finishing up the day on wall street. down day. worst day of the year for u.s. stocks but closing off the lows of the session. check out the dow, it has closed below that 20,000 mark. closed lower by about 127 points. the s&p 500 closing a little more than half a percent lower. the nasdaq got hit the hardest. one of those tech names really got slammed today.
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down 1/10. russell 2000 small cap stocks has been so critical to the post election rally. falling the most 1.3% lower. shares of delta sunk. that conversation is coming up. first, let's talk about the selloff we saw on wall street. joining the panel as always cnbc pro columnist michael santoli, samantha azarallo is at post nine and nancy tenger joins us as well. mike, the debate of the day. so trump got a lot of credit for the rally after the election. does he get blamed when we see a selloff like this today? >> i've been pretty consistently saying he got too much credit for what we all called the trump rally. the markets were geared to at least make a move in that direction anyway. we definitely have policy hopes layed on top of that. i think you're probably going to get a little bit too much causal
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suggestion that it was about trump today. so i don't think you need to stretch for an explanation of why the market was down 2/3 of a percent after going up 10% in 12 weeks or up 25% in 12 months which is what we've done. so all of that being said if you went into the weekend with the march perfectly in balance you would have said, look, insider selling looks pretty heavy. dow 30,000. started to feel like we were due. >> what was that stat you found last week, the average move for the dow. >> since 1940 is 0.65%. >> and both dow and s&p moved .61% today. >> exactly. >> this was normal. >> this was a typical day by the standards of the last 45 years. >> big numbers continue to take hold here. samantha, what do you think is going on here? do we attribute too much to the policy decisions out of washington when we try to lay it over the market? what's going on here? >> i think there's a
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combination. the market had tunnel vision to a certain extent in terms of what it was focusing on and what it was ignoring leading up to last week. i would also add the gdp number that we got on friday wasn't that stellar. then you look at global growth in 2016. we think it's going to pick up from what we saw but at the same time the clear markings aren't necessarily there that everything is going to pick up to such a degree that the market was really pricing in. >> nans be cy, i hate to argue mike santoli. you make the argument here and we see it being made all over cnbc today, that the focus on immigration and protectionist policies instead of the pro growth stimulus measures like tax reform, infrastructure spending and he did make that order today is a worrisome sign for a market that's built on hope and optimism around the globe. >> yeah. i couldn't agree more, sara. i don't like disagreeing with mike. we are definitely trading on
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expectations from corporate tax cuts, repatriation tax holiday, something to increase productivity. gdp growth has been lethargic but productivity growth has been nonexistent. we need that in order to get earnings growth where we want to see it to support the valuation levels. so while i'm not really concerned about past epm, it is troublesome that this administration has diverted our attention from the things that have driven us forward. so i'd like to see some actual movement and really specifics around the tax reform proposal. >> yeah. i think everybody would. in the meantime, we have what we have. let's bring eamon javers in to talk about the day from announcing his intention to nominate the supreme court justice to signing more executive orders today, it was another busy day for the president.
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eamon javers joins us from the white house. >> reporter: the president sounded good. the market goes down, i'm not going to comment on that. talking about what a lot of people on wall street have been calling the trump rally. sean spicer was asked about that in the white house press briefing earlier today and here's what he had to say. >> you look not just at the ups and downs of the market, you look at consumer confidence and a lot of the other market hitters. a trump presidency brought a lot of confidence back to traders, to investors. more importantly, to job creators. you look at the number of individuals, from small businesses, large businesses, automakers all coming in saying to the president i want to be part of your effort, your agenda to make the country better, to grow jobs here, to bring jobs back here. i think it's a positive sign.
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>> reporter: now previous white houses would have been a little bit weary of making a statement like that about confidence of traders on a down day on the dow but nonetheless this white house is committed to talking about all of these issues. to your conversation, i would add this caveat. if you are watching this white house and watching washington and trying to gauge its effect on markets, i think one thing to watch to handicap it, all of these political controversies erupt day after day after day as they're going to continue to do, watch for how many republicans peel off from the trump administration on various issues. the extent to which this white house can keep republicans on capitol hill in line backing them, supporting them, that's probably a good thing for all of the things that markets care about in terms of taxes and regulatory policies because they have the votes up on capitol hill, but the more republicans are forced politically to disagree with this white house on any issue, that's going to
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erode this administration's ability to get all those big business items done this year. they're already a heavy lift in any typical year that's a big piece of legislation to swallow on tax reform, regulatory reform. all of that a lot to do. this year it will be more. watch those republicans. if they start to wobble, that might give you a sense where we're going. >> watching the ceos for wobbling as well. thank you. eamon javers outside the white house. goldman sachs, lloyd blankfine doesn't weigh in, not just tech leaders sounding off, objecting to this new immigration executive order. and investors are wondering what that means for their stock prices. >> it was pretty clear that those particular companies that did voice opposition when the ceos did oppose this measure by the president, it did seem their shares under performed. you did see a pretty conspicuous under performance by alphabet
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and goldman sachs. i was never saying washington has absolutely nothing to do with the up or the down in the market, but i do think we fixate on those factors a little bit too much. however, i do agree that this general building sense that the priorities of the administration as they're now emerging don't seem to match perfectly with what wall street's priorities are. that could create a sense of maybe potential policy error as we used to talk about when it is a fed driven market. >> i'm reminded, you'll remember this well, ronald regan said, it's a stock market thing. >> we've seen president trump comment which is very, very unusual. >> it's unusual. >> unusual for the last two weeks. do these selloffs when we see the airlines go down 6%, when we see technology stocks just on a fear of some kind with no substance to it at this point, do those present opportunities or do you stand aside for a little while? >> there are opportunities when you look back to the
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fundamentals. so for everything we've said about the market perhaps overshooting, we look back at earnings growth, we look back at revenues and we feel positive on the equity markets. we especially feel positive on the u.s. equity market. >> dowell cop the dips to buy? >> we do. we think the fundamentals are there. with respect to valuations we acknowledge that they're not super cheap. we don't think they're expensive enough to be moving away from the market on a share valuation perspective. >> nancy, we'll wrap it up with you. give us one piece of investment advice, actionable idea to navigate what's going to be choppy and unusual remarks. >> no pressure, nancy. >> give us an industry group or stock pick here to help navigate. >> sarah, i'd be had a py to. i still like the health care sector for the long term and ft. meade yum term. i love this move today against mylan. i think that's important to get the bad actors out of the way so the companies like merck and j&j
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who have been totally transparent on pricing and will solve the health care cost crisis eventually or will help solve it, those are places where we're using the dips in the market as well as technology. i think you want to go in and buy something like google on a move today and i think earnings are going to be something that will provide an opportunity for investors when -- when some of the companies disappoint or don't exceed expectations so greatly. >> very good. and just so you know, samantha's nodding as you're talking so i guess you both agree on that issue. samantha, nancy, good to see you both. thank you for joining us today. >> thanks so much. >> you bet. financials were actually the worst performers today. one of the worst performers down more than 1%. closing off the low there despite president trump saying he would do a big number on dodd frank earlier this morning. what dismantling regulation could actually mean for the banks. that conversation is next. speaking of google, alphabet is working to win over
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republicans. so we're going to talk about how mr. trump's administration could affect google's parent company's bottom line coming up. you're watching cnbc first in business worldwide. dendndthse
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president trump today took aim as he said he would with an executive order requiring federal agencies to cut two reg few lagss for every one they implement. the order doesn't mention dodd frank but here's what mr. trump had to say about that financial reform law. >> dodd frank is a financial disaster. we're going to be doing a big number on dodd-frank. that's one reason why i'm taking this action and i'll take another action this morning if you like you can join me on the signing to begin our effort to dramatically reduce federal regulations. we'll be reducing them bigly and their damaging effects on our small businesses, our economy, our entrepreneurial spirit. >> less regulation but financial stocks were among the biggest losers today which seemed to be a bit of a conundrum. joining us is dick boisvert and
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jeffrey hart, principal at sandler o'neill. jeff, what do you make? just the fact that today those bank stocks sold off, do you -- and yet he's talking about doing a number on dodd-frank which would seem to have been holding back on growth for that industry for a few years. what did you make of today's market? >> there's a lot going on. the bank stocks really have had a pretty good run. giving back a little bit over a little bit of time i think makes some sense. ultimately i think there's more to come. when you look at some of the things he said about, you know, international trade, barriers to trade, there are things to be concerned about certainly. i think the real key for financials here is not so much the repeal of anything like dodd-frank or vulcar, an incremental lighten being of the load, day-to-day regulatory burdens. that will be good for confidence. that's the most important. probably the thing we're missing the most. what's good for the economy is good for the bank stocks. >> when president trump made this comment earlier it reminded
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me of a conversation i had with morgan stanley ceo james gormon. this is what he said about dodd-frank. >> i'm not a fan of getting rid of dodd-frank. there are elements of dodd-frank that clearly need to be curtailed. parts of the vulcar rule are affecting the market's liquidity. the structure of at the front end making sure banks have enough capitol at the back end for those getting in trouble making sure there's a resolution process and in the middle having an annual health check is a great structure. the challenge is let's start moving the ball. let's absorb the regulation we have. let's accept the capital levels are sufficient. let's take away things that are causing liquidity to dry up in the markets. >> so that's one of the big guys. you know, the ceo of bb&t told us the same thing.
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tweaking at the -- >> at the margins. >> not an overall. >> this idea, dick, of moving the ball, does it add any sort of risk into trading the bank stocks, the uncertainty over what any change in dodd-frank is actually going to look like? >> no, because basically any change is going to be a change that would be preferable to what we have right now despite what james gorman said. there is what we'll call good deregulation and deregulation that doesn't need very much. good deregulation is deregulation that will ease the burden on the bank balance sheets so they'll have more money to lend in the private sector. the regulation that doesn't need very much is what they're talking about now which is, you know, changing the durbin amendment, vulcan rule. i haven't heard anything coming out of washington which would suggest that anyone is thinking of doing anything about those factors which really would mean something to the banking
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industry. i've heard a lot of talk about things that just don't mean that much even though james gorman would like to see his traders do more business, the fact of the matter is that isn't going to get a lot of earnings into the banking industry. if you want to get earnings into the banking industry you've got to get to the capital rules, the liquidity rules. you've got to get to the liability rules. you have to get to the rules that affect how banks lend money. nobody seems to want to do any of that. >> what do you think, jeff? >> yeah, no, there certainly are some good things about financial regulation. i would specifically highlight liquidity. i think there's been some good things out there but i think the moving the ball, so to speak, comment does make some sense. it's a little hard to plan for the future when there's still a lot of unknowns and continually increasing capital rekwooermqui. the key forward is that we've gone from how much worse can things get in the regulatory capital front to maybe things could get better. if we could get a loosening up
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some we could see home lending increase, we could see demand for lines of credit and things to hire from small businesses. incremental pickups is what we're used to seeing in an economic recovery. we haven't seen as much. that's why it's been dragging along as slowly as it is. if we can get that, there's some good up side to come in the financials up to the great recession we're used to seeing. >> dick, i guess i wonder is this the right time in the credit cycle to have bank be kind of unleashed and basically start to add risk? obviously there's a lot of perhaps pent up supply of credit inside of banks if you eat up capital rules. it's not as if you revoke the capital cycle because the banks have been hemmed in. >> you're never going to revoke a credit cycle. if you match up the trump economic program as i understand it with banks, it's a bonanza for the banks. what does trump want to do?
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he wants to get the commercial side of the economy going. he wants to build big things, walls, tunnels, bridges, airports. he wants to get more manufacturing into the united states. he wants to build inventories in that manufacturing sector. all of these things are what banks fund so, in other words, the program that he seems to be enunciating is a program which definitely benefits the ability of banks to lend money and that's how they make money, by lending money. so this -- this could be a bonanza for the industry even though i don't expect to see very much effective coming out of dodd-frank deregulation. >> lately the way they've been making money is charging fees, but that's another story. >> i would add small business loans to this. that was the name of the game in washington. they have been declining, mike, as a percentage of overall loans. >> there have been fewer startups. that whole sector of the economy, that's right. >> dick bove, jeff stark thanks
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for joining us. airline stocks down after delta experienced the computer outage overnight. its second in less than six months and it's the second one we've had in two weeks. united continental last week. how are these affecting both delta and the industry at large. small business getting a boost from president trump today with an executive order targeting over regulation. ahead, a small business owner who was in the oval office today for the signing of that order and the meeting with president trump. she'll be joining us with her take next. ngstofg m m lpinng
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we've been watching airline stocks get hit after 80 flights have been canceled following a weekend that saw another 150 flights grounded due to a computer system glitch. delta ceo posting an apology on the company's website last night. >> this is delta's second outage in less than six months. the failure in august caused the cancellation of more than 2,000 flights over a three-day period. then there was united continental's outage over the weekend last week. for more on the impact these outages have on the industry. we're joined by global market advisers jonathan galavise. technology is complicated and they have tremendous, you know, impact on these businesses. it seems like these outages are more frequent than they need to be. what do you think? >> they are. if we look at the role that technology plays in the airline
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industry, it's critical. all the way from the operations, financial systems. these outages are occurring on a more frequent basis and really that's my belief that the u.s. legacy carriers airlines like united, delta, and others, they have legacy technology systems. the management teams of these companies haven't been investing in the systems to keep up with the times. >> that wasn't exactly the only issue affecting the airlines. you also, of course, had the executive order on the immigration ban. while the countries may not have direct flights, there was clearly disruption and protest at the airports. do you see that as having hurt business at all over the weekend? >> we analyze international travel trends, international arrivals. i think that the practical effect of international arrivals in the logistics of that into the united states, there could be an in bound tourism travel into the united states via
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airline. >> but i think the reality is this is more of a media situation of publicizing kind of these pockets of issues that are occurring on in bound immigration and visa issues rather than kind of a widespread systemic problem that would substantially impact the airline industry. >> jonathan, is the deficiencies as you put it in i.t. infrastructure more mission critical? is there something different from airlines versus other large companies versus complex operations that has kept them from basically keeping up. is it the mergers? is it something else? >> that's a very good question. i think there is some legacy issue regarding some of the mergers and, you know, some of the airlines that have done their merging over the last several years, they don't even have the same contracts yet for the pilots or for the flight attendants. you are in some cases having different technology systems and legacy systems still operating
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in the background. i think the core fundamental issue with the airline industry and focusing on this idea that technology is so mission critical. even one down day or one hour down can substantially impact the profitability of these airlines. and really i think the ceos on the boards of these companies need to take the idea that their chief technology officer, their chief information officer needs to be up there at the same level as the cfo. it is a critical position to the companies. it's very important to treat these chief technology officers and information technology officers as key officers of the company in respect to managing their enterprise properly. >> sounds like it was a triple blow for the airlines, mike. because not only did you have the immigration ban disrupting travel. you also had this outage at delta and president trump called out delta and blamed it in a tweet. >> right. >> so the question now for some of these airline stocks and the dow transport index which got hammered today, is it a buying opportunity any. >> i would add american airlines earnings last week which dazzled
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nobody. so it seems as if you already had investor sentiment on the defensive. the immigration ban, i wonder if that's more about the perception of huge crowds, protests, just kind of a general staff on demand in terms of, you know, domestic source travel. is it a buying opportunity or not? i don't know. if consumer trends continue the way they are, it should be fine fund amly on the demand side. the numbers haven't been going the right direction so i'm not exactly sure it's a no brainer. >> jonathan, it occurs to me we're all talking about the expectations for more infrastructure spending, more fiscal policy coming out of washington. there would be a great candidate right there, don't you think, to upgrade not only the technology for these companies but the -- we all talk about the air traffic control systems need to be outdated as well, right? >> absolutely. i mean, that is a big -- i think that should be and could be a
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very big component of the trump infrastructure plan and the republican's plan out of congress to basically get on the super accelerating the nextgen system for the faa. i think it's so critical now. every american touches the airline system at some point in the year. it's a part of who we are as america. it's a part of how we travel. i think upgrading the technology both on the government side and the private industry side is going to be important to look at over the next two years. >> jonathan galavize from global market advisers, thanks for joining us. >> thank you. time for a vik news update from sue herera. >> hey, bill. general motors and honda announcing a joint venture to produce advanced hydrogen fuel cell systems in vehicles from each company. the manufacturing will operate near detroit at gm's existing battery pack plant. each automaker is investing $42.5 million with production beginning in the year 2020
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creating 100 new jobs. former president george h.w. bush has been released from a houston hospital where he received treatment for pneumonia for two weeks. his treatment included a stay in the intensive care unit. major league baseball has ordered the st. louis cardinals to forfeit their two topics in this year's draft and pay houston $2 million as compensation for hacking the astros scouting database. the former scouting director was banned from baseball for life. and a bobcat is missing from the national zoo in washington, d. krmpt. that's ollie. she's a 7-year-old female bobcat. weighs about 25 pounds. zoo keepers believe she escaped through a small tear in the mesh of her exhibit cage. but they look an awful lot like house cats so if you're in the washington area and you see something that looks like that, don't feed it and don't bring it
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in the house. >> i hope it's not dangerous. >> i'm not kidding. they literally put out that warning. >> good advice. >> they're hunters. >> i like that. >> sue herera, thank you. >> you're welcome. we warraned you i guess. we have a news alert. >> we've been monitoring the reaction to trump's travel ban in the tech industry. many companies have had their hr put out statements. some coos have come out. amazon had hr accepted a note out to all employees. we got an internal e-mail that jeff bezos sent out responding to the original one that hr sent out. in it he says a quick update on where we are. this executive order is one that we do not support. he says that their public policy team in d.c. has reached out to senior administration officials to make amazon's opposition clear. he also says that, quote, we are a nation of immigrants whose diverse backgrounds, ideas,
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points of view have helped us build and invent a nation for over 240 years. he says to our employees in the u.s. and around the world who may be directly affected, i want you to know the full extent of amazon's resources are behind you. he has had a contentious relationship with trump particularly during the campaign. it's been more reconciliation since trump's victory in the election. this latest issue, the travel ban which has so many in the tech world come out and oppose it, we've also seen jeff bezos do the same. this is significant, of course, because amazon is a huge company and many other in the tech world rely on immigrants. it's an issue that hits hard for the tech community. >> wonder how it will affect his plans to hire 100,000 employees. thank you. let's send it out to morgan brennan now for a quick earnings alert now. >> hey, sara. take a look at shares of
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westerner westerrner enterprises. it was a four cent beat. revenue of 518 million also better than anticipated. i would note that the company coming out with some pretty upbeat guidance or upbeat commentary as well saying that they saw material improvements in spot rates in the fourth quarter and that expectations are rising for improved pricing in 2017 noting that stronger economic growth is part of the tail winds there. so, again, a beat on the top and bottom line for werner and shares are up nearly 7% right now. back over to you. >> morgan, thank you. google has long had antitrust challenges both here and abroad especially in europe. now with the new republican leadership in the white house, the search giant may be finding fewer friends in the nation's capitol and that's could impact the operations. how google is changing its strategies and what the risks are. also coming up, the
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president is looking to boost small business. he had an executive order cushing regulations. we'll talk to an owner who was in the oval office. there she is with a knit green jacket. >> how did you know that? >> i just happen to know that. we'll talk to her when we come back after this. ar 'r ops te. y,leccen
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within the trump administration are debating whether to turn up antitrust investigations into that company. >> company of course known for having ties to democratic leadership. they've avoided antitrust charges so far they did under the obama administration. should they be concerned now?
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let's bring in jousef pasquali. they have an 80% market share. is that enough to bring antitrust? >> high, bill. no, search is very finicky. as a user you're a click away from bing, yahoo! search. the fact that they have 80% plus market share as you pointed out of revenues of search spent speaks more about the superiority of their search results and of their relevancy. i don't think they have a strong case. >> let's bring in a lawyer. seth bloom is a former general counsel and the founder of bloom strategic counsel joining us
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along with youssef. what is possible? does the trump administration have a case to bring if it so chooses against alphabet for antitrust violations? >> i think they do very much have a case. in late 2012 the fcc staff found that google was behaving like a mow nop poe list. despite that in early 2013 the fcc brought the case. since that time in europe the european commission has brought a number of charges, what they call statements of objection. both on the fact that they allegedly biased search results in commercial searches, in price comparison searches to favor their own properties and also allegedly they're behaving in an anticompetitive manner with respect to the android operating system on wireless phones and they have an 80, 90% worldwide
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share of that in europe. i think there are a lot of bases. the antitrust laws are rather vague. that is the big unknown. >> youssef, if it is, in fact, a judgment call to some degree as to whether, in fact, you want to attempt an antitrust case, maybe it's for bundling other services along with search, whatever the grounds might be. you said it would never be great to own a stock if it's subject to that. the microsoft experience while a tremendous distraction and overhang, it did not exactly undermine microsoft's business in the long run. >> well, i think that's exactly where we come out on this. that's why google remains a topic for us for 2017. if you look at the business just reported last week, in this kind of environment where arguably
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the consumer is doing better -- google is doing a whole lot better. revenues showed acceleration year on year and diversification is working quite well. so i think this is a headline risk. you tonight want to be a target. at the end of the day we as investors and analysts look at the p&l and the potential outcome of the company's core business. for now at least the company continues to really hit on all cylinders. >> seth, before we go, i'm tight on time, i'm very curious. if i'm the general counsel of alphabet. i see the clouds starting to build overhead. there's talk coming out of washington, what's your strategy? what would you do? what could you offer up that might appease the folks in washington? >> well, i think you can offer up ending the practice of favoring, you know, your own commercial site. especially you can do that in
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europe where there are charges brought against google for that. of course, you could offer that up in the united states as well. but i think you ought to be concerned about who might be nominated to be chair of the fcc, for example, and some of the names that have been floated have been people who have expressed concerns about google in the past. and we'll have to see how that goes. >> yes, we will. good to see you both. thank you. >> thank you very much. >> thanks. president trump giving hope to small business owners today with an executive order to lift regulations. up next we'll talk to one of those owners who was with the president in the oval office. in fact, she sat next to him. >> in the mint green jacket. >> disrupters like uber and snap chat are attracting investors including many sort of old guard companies. why they're getting into the venture capital game coming up. you're watching cnbc first in business worldwide. the
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welcome back to "closing bell." the company responses continue to pour in here responding to the immigration executive order from president trump. just got word from p&g. a spokesperson says while the full impact of recent policy changes are not clear, we know there may be some impact on our employees, business partners and families. they stopped short of saying we don't support the order. they do say as for the broader p&g community we have our
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unwavering environment of inclusi inclusion, all people are welcome, valued and respected. that speaks to the variety of responses we're getting. clearly p&g is massive and global and operates in a lot of these countries that are affected except for i think iraq and syria. clearly they have employees and employee family members that are fa affected. they're stopping short of saying they do not support the order. >> right. moving on, president donald trump met with small business owners today, signed an executive order to cut down on regulations. >> so essentially we're getting rid of regulations to a massive extent. could be as much as 75%, could be even slightly more than that. we're going to have great protection for the consumer, we have to, but we don't need 97 different rules to take care of one element. >> joining us is irma igari. she is the one we showed you
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earlier sitting next to the president there at that meeting today. there she is. how cool was that, huh? >> it was incredible, quite honestly. >> what did you guys talk about for those of us who weren't in the room? what did we miss? >> well, we talked about so much. the president asked us to meet with him because he is looking to invigorate this economy. he wanted to hear from all sorts of businesses, small businesses like mine with ten employees all the way up to 300 and so we sat down and had a very candid conversations about what our needs are and what we would like to see moving forward. >> and what did you tell him? what can a company with ten employees, what can the president of the united states do that will help you and your business? what's your biggest impediment right now? >> well, you know, most businesses like mine suffer from cash flow, access to capital, to increase their businesses. it's very difficult for us to
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compete with the major chains, big corporations and so the president understands that small businesses like mine are the life blood of this economy and he is looking to deregulate, slash regulations to make sure that capital, again, starts flowing down to us. >> right. >> so can you give us some examples of which regulations, what kind of red tape is actually holding back your business? >> you know, there were so many different types of businesses that were in the conversation today that all had different needs, but for my in particular, just the regulations in terms of banking, that would actually free up banks to start lending again to small businesses like mine. >> there's talk of cutting taxes, especially for small businesses like yours.
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chances are your company's business is in your name so you're being taxed at your rate. would that help as well? >> absolutely. absolutely. you know, i'm in the restaurant industry. our margins are very low. we get taxed left and right. we're just being hammered, you know, left and right, and so any kind of relief is obviously going to help us and, you know, it is so refreshing to have a president that actually understands business. he also, you know, was very motivational and knowing that we have somebody at the helm that understands business is very hopeful to all of us. >> we'll see what kind of regulations get rolled back. thank you for joining us though. >> love the mint green jacket, by the way. >> easy to spot in that photo. >> the owner of elle sombrero
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restaurant in las vegas. they once disrupted kids' tv. now they're trying to do the same thing in high tech. talking about the folks that brought us elmo and grover. they're aiming to be disrupterd. really. >> and coming up, the man who called the trump rally, gave us another reason to buy stocks, scott wren. still bullish. tau, irencl pweurtintan ou re in wnf
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they have little in common other than all the recognizable brands.
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it is the story of established brands turning established investors. >> they have venture capital arms. they're looking to buy a piece of and learn if the next big thing. with this trend on the line, they were involved in 13% of investments last year. >> i think they look at i as a gray way to see what could potentially disrupt them. it is a lot more about outsourced r&d. once upon a time, big companies had big r&d spending internally. this allows them to have a front row seat at outdoor r&d. >> a number of companies are investing in their own divisions. facebook established a new division, alphabet on its moon shots division by over 60% last year, and microsoft said it will
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invest over $1 billion annually in cyber security. now we're looking at what might be acquisition targets or might become the next generation of leaders. we're accepting nominations for our disruptor 50 list which will be present in may. >> julia, thank you. comments? >> i think arguably history shows it is better to be an investor in the next big thing than assume a company will come up with it in their own ranks. >> delicately put. apple kicks off a week of tech earnings. we'll review the results ahead clund under armor.
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sprint ceo's exclusive message on earnings and mogul. squawk alley tomorrow on cnbc.
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talk earnings.
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picking up, especially in the tech sector among the worst performing stocks, apple picking it up tomorrow and investors are hoping it can pick it up the momentum. >> facebook on wednesday. wall street will be paying very close attention to the advertising growth. and then amazon is the highlight of thursday's earnings calendar. the impact, the strong holiday season and its cloud business. we keep forgetting, that's a huge part of their growth to the bottom line. >> with the nasdaq having been the lead index as well. it is a little bit of a test. i think it will be interesting to hear if apple says anything about what they might expect or hope for in the way of getting cash back, tax reform and all the other policy issues we've been talking about. apple's quarter, probably not a lot of suspense taxed to it. >> will they break out the apple watch? let's not forget, tim cook said
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this would be the christmas the apple watch would excel. >> it would shock me if apple watch were big enough to be a material item. i think they're probably still -- >> the services number, i'll be watching pretty carefully. it is still a small percentage but it is a growing one and one that investors are paying closer attention to. >> to that point, apple music has been more the stealth success than apple watch. than the watch was. just because i don't think anyone had great high hopes for it and it has skinly built membership. >> amazon. we'll be looking closely. they don't break out numbers that much. the alexa, the echo. anecdotally you hear they did very well. >> i'm sure they did extremely well. it is more about the sentiment cycle. even when they have great numbers sometimes. >> they have been producing a profit though. >> yes, they have.
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>> i'm also be good to be watching under armor. this is one that has been hit since the election. >> apparel-related athletic is so bad that it's good. >> we'll know by this time tomorrow. we're coming back. we hope you are too. "fast money" begins right now. big businesses are thrilled with what's happening. the stock market has gone up massively since the election. everyone saying the market will go down. why is it not going down? the smart people know me. the business people know what i'm about. so the market went massively up. in fact, when i was elected, a lot of the really smart people went out and bought a lot of stock. and they've been rewarded. >> there you have it.


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