Skip to main content

tv   Closing Bell  CNBC  May 24, 2017 3:00pm-5:01pm EDT

3:00 pm
session. five straight days of gains. >> apparently "closing bell" will owe wilford frost lunch because we're going to give it to them early. >> thank you for joining us today. glad to have you with us. thanks for watching. >> "closing bell" starts now. ♪ >> good afternoon, everybody. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. we are watching capitol hill today. we are expecting to get congressional budget office score of the house gop health care bill. we will tell you what to expect and why it could affect the market. all coming up in the next couple of hours. >> probably most anticipated after hours event, earnings and everything today. if you think google knows too much about what you are doing online already, you may be surprised to learn they know what you're doing off line, too. we have details on a new google ad feature that has hack will
3:01 pm
also raised. >> very interesting cutting edge, we'll talk about that. an fda panel backed an experimental breast cancer drug. shares of the company soaring, it was up 50% on monday in anticipation of this. the news came out now, another 26%. meg tirrell will have details in a little while. >> puma is good jumpers, we know they're fast and can get up a tree. >> the name of the km is puma biotech, not a totally non-sec ter. treasury secretary mnuchen making comments on the debt ceiling. >> reporter: that's right, he was testifying before the house ways and means committee and called on lawmakers to raise the debt ceiling before the august recess. >> i urge you to raise the debt limit before you leave for the summer. it is absolutely critical that where we spent money, that we
3:02 pm
keep the credit of the united states as the most critical issue. >> reporter: he said that he believes congress should pass a clean bill, meaning that nothing else should be attached to it. that's already running into resistance from conservatives who see this as an opportunity for broader debate over the budget and spending. onb director said in his testimony earlier on capitol hill that tax receipts are coming in more slowly than expected and it could mean that the government bumps up against that debt ceiling limit earlier than expected. right now the deadline is forecast for the fall. in addition, mnuchen reiterated his concern with the border adjustment tax. he has been meeting with kevin brady every week and opened the door to a temporary tax cut. he said the administration supports comprehensive tax reform and permanent is better than temporary, but temporary is better than nothing. >> permanent is better than
3:03 pm
temporary, got it. >> got it. thank you, ylan. keep us updated on that. get to fed minutes released about an hour ago. steve liesman is at federal reserve building in washington with those numbers. how did they look, steve? >> pretty interesting, bill. minutes of the meeting affirming market expectations for a june rate hike, with most at the meeting saying a rate hike would "soon be appropriate" if the economy rebounds as expected. now, there were some concerns and officials at the meeting said they wanted evidence that the economy was indeed bouncing back from a weak first quarter before they hiked again. the economy grew less than a percent in the first quarter but it is expected to rebound with a 3% number or so this quarter. there also was some concern about recent soft inflation readings and deep uncertainty over timing of any fiscal stimulus from the white house and congress. in fact, suggested a number of participants as the committee took a general swipe at washington with saying clarification of prospective fiscal and ot policy changes
3:04 pm
would remove one source of uncertainty for the economic outlook. in other words yellen to trump, get on with it. on the other hand, most said the types of fiscal policy under consideration presented upside risk to their forecast and other worried about a labor market running too flight and might pose an inflation risk. that is some hawks think the fed might be moving too slowly. all participants agreed to reduce the fed's $4.4 trillion balance sheet this year and would do so according to a plan presented by staff but not yet approved by the committee, do so in a gradual way, reducing a bit every month and increasing the amount they reduce by every three months until it got back to a level of normal, but they've yet to say what that normal level is. bill. >> all i know is that you look at the financials, they're a little bit weaker after this sense of rate kind of dropping a little bit. >> yields went down. >> yes. interpretation, kind of make sense to you here? >> there was one part of the
3:05 pm
minutes that maybe i should emphasize where they said, you know what, we need more evidence that the economy indeed has turned around. you could read that as saying, you know what, it is not on autopilot, this june rate hike. remember, if you look at the fed fund futures for june it is around 80%. maybe it is a little less if the data doesn't show up the way it is expected. we are supposed to do a good 3%. i think i have seen -- seen the rapid update around 3.8, 3.9. if the data doesn't show it and there's not good evidence by june, maybe some members of the committee will say, you know what, let's wait a little longer. >> always leave themselves an out just in case, right? >> like when you're in traffic. >> a little safety valve. >> see the tires of the car in front of you. >> that's the first thing i thought of, too. >> thank you, steve. speaking of state of the consumer, another retail wreck on wall street today. courtney reagan is back to survey the damage. >> reporter: hi, kelly. today seemed especially messy because of the trends that tiffany and lowe's break.
3:06 pm
tiffany did beat on property but disappointed in every region but europe. points to lower tourist and domestic spend evening in the key market of the americas and the stronger dollar for a negative of translating it back. tiffany shares had been up more than 20% this year but today it halved that moving down 8.5%. signet, the owner of kay jewellers and others, those are down, too. it is on a downgrade, and a price target cut from buckingham ahead of those warrants. buckingham is worried about signet sales and small exposure. turn from jewelry to power tools, lowe's turned in a disappointing quarter a week after rival home depot knocked it out of the park. lowe's missing on all of the major metrics, comp sales positive but weaker than expected and far shy of what home depot was able to turn in. the main difference between the two is that home depass has cornered the professional and they spend more than, say, a
3:07 pm
do-it-yourselfer consumer. chico is the biggest disappointment but maybe not as surprising because of the weakness we have seen in the women's mall-based apparel. the company has 1500 stores under name sake brand but also white house market sonoma. wifd when compared to expectations. a far cry. falling nearly 9%, the worst performance for that metric since january of 2009. remember what was happening then? >> i know. it feels like it is a crisis for retail today. i guess, courtney, the question -- or the conclusion most seem to be coming to, it is not the case for the rest of the economy. so they're left on their own in this one. >> exactly. everyone thinks that retail and shopping, hey, it is an easy thing to figure out. it is not so easy. it is really hard to figure out exactly what the consumer wants, when they want it, the price at which they're willing to pay for it and how they're going to get it and, by the way, make a profit at the end. it is very difficult especially in today's atmosphere.
3:08 pm
>> for sure. thank you, court any. >> thank you. >> see you later. courtney reagan. we have a lot to talk about in our "closing bell" exchange today we have a full house. gabriella santos with us, next to her kevin nicholson from riverfront investment group, steve grasso from stewart frankel and rick santelli from chicago. i want to get your response on the fed minutes, rick. not a huge response, but more than we had recently. how do you read the declining yields, the dollar index after the minutes came out? >> i think it is a great question and it is enlightening even though the moves moderated a bit. the dollar index yeefr, five year down the most, three or four basis points, stocks still higher. only one way to describe that. less aggressive. somehow the interpretation is that the fed is going to move slower, balance sheet reduction will take longer in terms of its final completion of the plan
3:09 pm
that they discuss. i can't tell you the reason. it is such a rohrshack when you read statements, but the market was universal. i agree with that. is by far doing more the right things than any other central bank. however, i still think they're going to go kicking and screaming on the final tightenings balance sheet reduction. >> all right. well, how do you make moves in this atmosphere? we have not talked that much about the fed. are you that concerned with what the minutes said or do you feel, kevin, it is more about the bigger picture? >> i think it is more about the bigger picture. for us, we have -- at riverfront thought there was going to be three hikes this year, we kind of bit it into everything that we're looking at. so when we look at our positioning overall we have been tilting the portfolios towards europe. we still like the u.s., but we have pulled about 10% out of the u.s. over the last couple of months because, you know,
3:10 pm
going -- right after the election we put a lot of money into the u.s. and we started taking it off the table because we haven't had any policy powers ripped. we think things are pushed further and further out throughout the course of the year. but i think overall you are seeing horrible growth everywhere. so you kind of have to ride the momentum. i think things will be higher when we get towards the end of the year. >> your mantra has been slow and steady as well for this market, even as we bump up against all-time highs here. do we keep doing that or what do you think? >> slow and steady for the market because ultimately it is a slow and steady economy. i think if you look at where we were a few months ago, there were a lot of expectations about upside and down side risk coming from washington. both of those risks have been removed, and what you are left with is a 2% kind of economy with a healthy, solid consumer. that's a good backdrop for earnings and for the markets to rank higher over the next two years, but it is slow and
3:11 pm
steady. as a result, we're being much more selective in the u.s. and making sure to incorporate international as well. >> some of the key levels, steve, we're kind of sitting here and burning with are 24,000 on the dow, 2400 on the s&p 500. what is it going to take? >> think they're still the only game in town. i think people are poised. we had an equity market that ran up and then plateaued an now you have a prospective pro growth policy that isn't getting any place other than no new regulation. you are afraid to sell the market. so the bears keep getting rolled over, but it was interesting when you talked about yields. rick hit it. slow, slower pace than people would think. but if you look at what happened right off of -- >> normalization by the fed. >> correct. but if you look at what happened on an intraday basis, the utilities ran, real estate ran, xlps, the staples, gold ran. maybe that hint or a sniff out of inflation could be the reason
3:12 pm
why gold ran, but there's no other place to get yield. if i told you that utilities outperformed the overall market you would be shocked but yet they have. when you look at that, the financials are flat year-to-date and they remain as such and there's no real motivation to jump into financials. >> yeah. >> but people are looking for utilities, slow and steady. >> i highlighted the utilities yesterday for that very reason, and now we're seeing them again doing pretty well. part of this slow and steady strategy, does it take you to something as moribund as utilities? >> no, it doesn't. when we say slow and steady for the market overall, it doesn't mean slow and steady for different sectors within the market. if we look at it the next few months, what we think we will see is utilities doing less well and financials do better because that slow and steady growth means that our loan volume, which is great for financials, means more rate hikes, again -- >> but we could have said that for the last couple of months as well and we haven't seen that
3:13 pm
actually play out. so i wonder if we're actually all missing something. >> right. >> and people think that maybe their financials -- maybe you're not going to see the 3% growth. i still do think you will see a transitory 3% growth, and i think that's why people are diving into equities, because if you get that print, you are looking at 2550 in the s&p, not staggering over 2400 either side. >> so it is just one -- our view on financials in the slow and steady market does not need a 3% economy. it is just based on a 2% economy. think it would be a mistake to read the minutes because to me the message is steady as she goes. >> and you're nodding your head over there. >> i totally agree. i think that it is slow and steady. i think that the fed is going -- like i said earlier, the fed is going to raise three times this year. i also think that what we're seeing is that any time we get any type of pull back in the market you notice people come in.
3:14 pm
>> oh, yeah. >> because there's been so much cash on the sideline, so i think we have -- you know, we have a bottom level set. you know, we have a floor that's already set here, and so that's why i think we will continue to grind higher. i think that, you know, the u.s. is -- while we're still growing, europe is growing faster than we are right now. >> yeah. >> which is a good thing. >> last time you were here, you made the case for europe. is that still where you would overweight relative to the u.s.? >> definitely, and that's why we're overweighted in our portfolio. >> rick santelli here. doesn't it bother the big rally in europe is based on an economy with really large training wheels and negative rates in the hands of potentially very weak holders? >> well, no, it doesn't really bother me because i think that, you know, europe is basically three years behind the u.s. and if you think about it, what did we do? we reflated our economy and europe is doing the exact same thing we did three years ago. >> rick, if i can jump in here -- >> three years, the discussion --
3:15 pm
>> let me just ask you real quick. >> just might. >> i wanted the rick santelli take on what's been happening with big coin quickly. the thing is doubled, the funds exposed to it are way over net asset value. it is not just that it is all of the digital coins, if you want to call them that. what do you say to people that want to be part of this phenomenon? >> there's a sucker born every minute. >> all right. >> i'm with you. stay away, stay away. >> thank you, everybody. >> thank you. this is why we call it "the exchange." that was a good one today. thank you. >> and we're heading into the close with 45 minutes to go. dow has taken on a gain of about 47 points right here, quarter of 1%, same ganls of the nasdaq, s&p about that much higher. russell is lagging. >> having said what we said about bitcoin, we still love you, brian kellie. >> always. >> remember this victory lap earlier this month? the house may have to vote on
3:16 pm
the american health care act yet again depending on the senate and the congressional budget office's analysis of the bill, and the cbo score on the bill is due out later this afternoon. we will tell you what the report is likely to say coming up here. >> up next, google is expanding ad tracking what consumers buy into the real world. we will discuss privacy issues at stake and how they're going to pull it off. you're watching cnbc, first in business worldwide. ♪ the bond report is sponsored by -- is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
3:17 pm
the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. with all the things you'lltion. never learn from a book. expedia. everything in one place, so you can travel the world better.
3:18 pm
3:19 pm
intu i think is hitting an all-time high today, up almost 7% with the tax preparation soft wear maker reporting better than expected quarterly earnings. it raised its outlook as well, intuit ceo says a 59% jump in quick book subscribers was helped by an increase in self employed and small business members. >> who are clearly into it. >> you are running hot today. >> i couldn't resist. >> she wanted to share with you as well. >> didn't want you to miss out. new tools available in the digital advertising space, google out with an ad measuring
3:20 pm
tool that shows whether onlines and clicks lead to actual in-store purchases. how? for those nervous about google tracking your data the company tells us, "we have developed a new, cuss toll encryption technology that ensures users data remains private and "anon" miss." >> join us, to talk about it, matt gritton and dave ferris, founder of millennial, a marketing agency. i'm still trying to get my arms around how it works, the google part. the facebook thing we will talk about later, but the google part, how do you find a measurement that tells me exactly how effective a particular digital ad has been in terms of the sales there? >> this is what they do. they partner with a variety of third party companies to have credit card transaction data. what they're doing is matching that credit card transaction data to ads. so if you see an ad for a brand, let's say victoria secret, on a
3:21 pm
google property and you purchase at victoria secret, google can connect the same user to seeing an ad online and connecting off line. if you think about it, only 15%, or less than 15% of all sales are happening online now. if google wants to grow to be a trillion dollar company, they have to show they drive sales off line, not just online. >> they don't know exactly what i bought, just i bought something. >> from a particular retailer that advertised on the google property. >> david, i guess what google is able to do is tap credit card information and overlay it with what i have searched for. are you guys, millennials in particular, do you think there will be push back on this or does it represent the next phase of advertising? >> i think it is evolution. we have accepted you know everything about us and you can have all of our data as long as you make the media in our lives value added. enhance my experience and you can know whatever you want to know about me? >> you think that's true? everybody has my information and as long as you don't charge me
3:22 pm
for it, as long as i benefit from it, it is fine? >> in general. as social log-in as an experience becomes more prevalent across the web, we are getting used to touching with one button and giving people access to our information. is there sensitivity? sure. is it still an important issue of prifseer? no question. but in general we are getting used to idea advertisers know everything about us, maybe better than we do, and make our lives better and distribute tailored media because of that. >> do you agree with that? >> i think privacy concerns are way over blown with this millennial generation. this is a generation that chooses to broadcast their life real-time. this is a generation overly voyeuristic. >> their concerns of privacy, getting social security, credit card number stolen is way more than the millennial generation. their concern is who i'm texting at 2:00 in the morning, is that going to come out, which is why you saw the growth in snapchat. it is way more personal in terms
3:23 pm
of privacy than the business basis. >> i wonder about the efficacy of a lot of this already. when i'm online, buy something and i see an ad for it and it is the exact product in that same color and i'm like, i just got it. >> it is truly a game changer. right now in terms of the way we attribute media success, it is typically a view through. i have seen an ad and bought something or i clicked through, so i clicked on an ad and bought something. if we can now additionally layer on, i saw or i clicked and then i bought in store so it wasn't just view and click directly to buy online, it changes the game. >> what about the facebook strategy where they're using their own data of who is using facebook to help advertisers target better? >> so i believe one day facebook will power nearly every advertisement including on tv, on billboards, on radio because they have allowed over two trillion clicks or likes or pieces of information about consumers. they have a rich data set about consumers around the world, unlike any other company.
3:24 pm
what they're trying to do to drive growth is not use themselves as a destination to market to people on facebook, but use it to market to people on third party platforms. >> we have to go, david, but is google unique is having access to this or are other companies going to be able to do the same thing? >> i think everyone is going to try to follow suit because it is done through third party data warehouses. they're sort of proving the concept and as soon as they do everyone else will join us. >> david yaris, mat britton, thank you. >> i don't understand it. i don't have to, you do. >> you're the wiser generation. you're supposed to tell us why it is silly to not have privacy concerns. >> i don't know. i will just go to the store and buy it. >> 35 minutes to go until the close here. dow hanging on to gain of 535 points. s&p is up 3 to 1402. the dow is about 20 points shy of the all-time closing high. nasdaq up 17 and russell up a
3:25 pm
point. >> my kids told me, never click on that, dad, don't do that. up next, the key tactic verizon is using to get users to switch services. >> hp, pvh and guess are out after the bell. we will break it down when they hit the streets. stay with us.
3:26 pm
listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery
3:27 pm
and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. welcome back. here are some gainers in the market. it is abercrombie and american eagle. abercrombie up 7.5%.
3:28 pm
american eagle up 2%. express and other buyout firms are among the parties involved in the process. baker said the deal could be reached in a month or so. >> can i tell you the story about abercrombie, i used to shop there all the time when i first moved back east. >> actually i know that. >> once upon time it was for my generation. >> my uncle used to work there. he has a -- >> we would go twice a year at trump tower, there was an abercrombie & fitch. six months later i went back and i didn't recognize the place. it was for teenagers. >> it happened quickly. >> it was overnight. it was unbelievable. it was like going to camp and coming home and mom and dad moved away. >> if they want to be successful, they need to go back to their roots. come back to the boomers.
3:29 pm
t-mobile continues to try to lure users away. in lame i thinked promotional offer starting next week, t-mobile is offering to pay off verizon customer's phone lease when they switch over. users will get a digital prepaid mastercard within 15 days of signing up, and customers will be able to keep their existing phone number and their phone after ensuring their device with tirks mobile's premium device protection plus for $15 a month. so you sell your soul to them. >> right. >> but they get you out of whatever contracture 'in with verizon at that time. >> listen, there's a really tough environment right now if you're verizon and at&t. t-mobile has been successful. obviously there might be a deal with sprint, you know, in the works here, depending on how you read the tea leaves day-to-day. it is kicking the dog while it is down. >> we are such creatures of habit, especially us older customers, that i -- i think it would take a lot to draw us
3:30 pm
away. what am i getting for changing? >> you would think. but if you were younger and more price sensitive and, look, t-mobile is a cool company. you can't deny that. the coverage issue, which was a biggie in the past, you know, they get past that and, you know, they're getting the net subscribers right now. >> as long as i can keep my blackberry. we can talk, john ledger. time for a cnbc news update with sue herera. sue. >> reporter: hi, bill and kelly. here is what is happening at this hour. secretary of state rex tillerson says president trump will be tough when he meets nato allies for the first time tomorrow, demanding they raise their defense spending. he spoke to reporters on board air force one as the president heads for brussels. mark zuckerberg toured his old dorm room at harvard and live streamed on facebook. he visited room h-33 of harvard's kirkland house with his wife. the two met as students at the
3:31 pm
ivy league school. if those walls could talk. good news for "top gun" fans. there will be a sequel to the 1986 movie that starred tom cruise. the announcement made by mr. cruise himself on australian morning television. >> "top gun 2" true? >> it's true. >> really? >> it's true. >> really? >> yes, it's true. >> when, tom. are you allowed to say when? should you give us a hint? >> you know what, i'm going to start filming it probably in the next year. >> which means the movie is expected to be released in 2020 or 2021. that's the news update this hour. kelly, back to you. >> all right, sue. thank you very much. i'm on the floor with matt from virtual financial who said, wait, they didn't already make a top again 2. >> i guess i'm behind the times. not surprising. >> in any case, we are looking at the market and trying to discern about this rally. what dow make of it all? >> this is probably the most
3:32 pm
unexciting fed announcement we have seen. you know, we really got nothing out of them except we're going to look more closely in june and the market kind of rallied. we got above some key points in the dow and the s&p. so that might be pretty positive. >> do you think the fact we're sitting above 242 for the s&p 500 -- we have been up here before. >> we need to close through some kind of significant and we're not seeing that. we get it, we test it and fail. then we get to it, we test it and we fail. i think we can break out, but this was good. you know, it was a good action based on a non-event. >> real quickly, oil, is that going to be a head win? we are going into opec meeting. it has been sagging. >> we have a massive rally 43 and change level up to here. so i expect it to pull back, sell on. i don't think anything that will come out of them will provide a reason to buy oil right now. >> matthew, thank you very much. >> sure. >> of virtue build. >> heading into the last half hour, the dow up 64 points.
3:33 pm
coming up our bull-bear debate on a luxury jeweller stock and whether it can get its bling back. up next, a congressional budget office report is due out this afternoon that could determine the fate of the american health care act. more details on that coming up. ♪
3:34 pm
♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here.
3:35 pm
3:36 pm
major averages are generally higher today. this will be the fifth day in a row for the dow. i think the s&p and the nasdaq as well. the best gainer -- boy, it is neck and neck between the nasdaq and the dow right now, and the s&p is flirting with that 2400 level. >> nasdaq making up some lost time yesterday. >> yeah. t. rowe price is trading low, downgraded to outright sell to buy. cut the price target to 61 from 77. it is trading at 68. the firm predicts the government's fiduciary fee and transparency rules will hurt t rowe price's earnings next year. ubs decided to shift towards passive investing. there it goes again. >> i think june 8th or 9th the fiduciary role is happening. >> yes. >> we are expecting the cbo scoring on the affordable health
3:37 pm
care act this afternoon. get to tayla tausche with what is expected. >> reporter: that cbo score will assess how the changes made to the health care act to pass the bill would impact insurance coverage and cost. the last time in march, the cbo found a previous version of the bill would insure 24 million people and the deficit would shrink by $150 billion over the next ten years. provided funding for preexisting conditions and waivers for state. that bill passed the house three weeks ago with no score. senator chuck schumer equated that to test driving a car three wakes after you bought it. >> it is a technical, procedural step beyond likely reiterating things we already know like that fewer people will buy a product they don't want when the government stops forcing them to. the updated report will allow
3:38 pm
the senate procedurally to move forward and work and draft its own health care legislation. >> to that end senate republicans said the cbo score will be key in figuring out how to structure their proposal. senator mcconnell telling reuters today there's not 50 votes in the senate right now for the health care reform. kelly. >> i mean that's the problem. so, kayla, here is the question. especially if you go back to obamacare, the main issue was how many more people is it going cover and what is it going to cost. with the gop approach here, you know, how much is this going to cost, how many fewer people will it cover, but which of those two issues do you think is the bigger hang up for the legislation to move forward? >> kelly, it is clear you can't have your cake and eat it, too. if you want a plan to cost less, it is by definition going to cover fewer people, although one of the sticking points in the house is how exactly you structure it. do you allow insurance companies to charge older americans much more money for their insurance premiums? what happens to lower income
3:39 pm
americans? do they end up getting less money while richer people participating in the program end up getting a bigger tax credit? they're still figuring out exactly what will be a viable option in terms of structuring something, and the cbo will play a very important role in that. >> yeah. >> i think it would be very instructive to see what cbo comes up with this afternoon. stay tuned for that one. kayla, thanks as always. see you later. >> about 20 minutes to go until the close, and we're expecting a report at any time this afternoon, probably after the market closes. dow is up 65 points now, so it continues to kind of move higher here. it has taken the roughly into positive territory, albeit by a point. the s&p 500 is at 2403 now. looking here, the record intraday high for s&p is 2405, the record closing high is 2402. analysts are issuing buy ratings and puma biotech stock is soaring. we will tell you what is behind the moves next.
3:40 pm
>> gillette is getting a shot across the bow on a new front from an old rival. the latest in the razor wars and what it could mean for p & g stock coming up. >> sponsored by sector spdrs. it's all yours. wow! record time. ♪ at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. ♪ get ready, because we're helping leading companies lead with digital.
3:41 pm
3:42 pm
3:43 pm
welcome back. take a look at cocoaa futures which is on pace for the worst day since 2011. we are talking about six years since we've seen a drop of this magnitude, nearly 7% now. predicting a significantly larger surplus in 2016-17 season compared with other forecasts. international cocoa says it will exceed demand. >> i had no idea you followed cocoa that closely. >> it is a bitter day for chocolate. >> would be very proud. >> and a lot more. cocoa melts is another one. >> she has a million of them. check out other market movers.
3:44 pm
diamondbac doe deutsche bank is lower after a letter was sent to ceo. they want information on whether loans the bank made to president trump were guaranteed by the russian government or were in any way connected to russia. that stock down 1.5% right now. more on that coming i'm sure. ge meanwhile losing early gains during a conference in florida. ceo jeff immelt said ge's earning forecast is at the high end of expectations. he said hitting goals will require additional cost contingency and that stock is down 1.5%, one of the drag goes on the dow today even though it is up 78 points right now. meantime, no drag on puma biotechnology. it is resuming -- it did resume trade this afternoon after being halted much of the day. right now shares are up 29%.
3:45 pm
they were up 50% on monday. meg tirrell joins us with the reason behind the halt and the continued move higher here. >> reporter: hey, bill. it is a huge day and huge week for puma biotech. an outside panel of advisers was meeting to discuss whether to support approval of the company's experimental breast cancer drug. this is so important for puma because it is the company's one and only drug. it is being tested in sort of a small slice of breast cancer population. for people who have her 2 positive breast cancer, who have gone through surgery and taken herceptin. it may sound like a specific slice of the market, but analysts say it could be 40,000 women per year in the united states. cowen is saying if they get approval, could be $1.2 billion in annual sales in the u.s. and the eu. the panel this morning voted 12-4 in favor of support of this drug. so that's very positive. the fda doesn't have to listen to that advice. they are expected to decide on whether to approve puma's drug
3:46 pm
in this indication by july. a lot more catalyst to come for puma but a volatile day, guys. >> is this a crowded race? will others be trying to catch up with what puma is doing? >> that's a great question. we will be looking at the cancer conference that starts in june where roche will have data that could affect a similar patient population. it could have big implications for puma as well, kelly. >> a company with one drug, they're hanging their hat on that and stock up 100%. classic biotech volatility right here, meg. >> reporter: yeah, absolutely. the whole thesis around this company is potentially if this drug is successful they could be acquired. the ceo has done this before. his last company was called cougar biotech, and notice the trend in the name of the companies there. he turned that company around and sold it to johnson & johnson. the hope for investors this this company is he will be able to do
3:47 pm
the same here. >> huge week for them. thank you, meg. >> thank you, guys. >> 14 minutes left in the trading session here. dow up 70 points. we're watching the s&p though. right now, boy, it is very close to all-time high territory. sitting right on the cusp here. >> about 2 points of an intraday high, above its prior closing high of 2402. >> will be a nail biter, we'll see. >> is meantime taking a hit today with tiffany reporting lower than expected quarterly sales. is it a signal to get out of luxury retail stocks? we have a debate next. ♪ >> market movers is sponsored by -- watch unlimited romance. if you're into that. but we also want more. like unlimited hbo. can i stop dying now? no can do mi amigo. it's unlimited. besides, you're really good at it james! don't settle for any unlimited plan. get at&t unlimited plus.
3:48 pm
and, now get the amazing iphone 7 on us. we've done well in life, with help from our advisor, we made it through many market swings. sure we could travel, take it easy... but we've never been the type to just sit back... not when we've got so much more to give when you have the right financial advisor, life can be brilliant. ameriprise it's your glass of willpower that helps keep cravings... ...far, far away. feel less hungry with the natural fiber in clinically...
3:49 pm
...proven meta appetite control. from metamucil.
3:50 pm
this is the index the traders watch, the pros, and right now it is trading at all-time high territory. the last high was 2402, 32, set on may 15th and we're a couple of points above that. we will see. >> the dow for its part right now is also just about 100 points shy of its prior closing high, 21,015. >> fif annie hit hard today,
3:51 pm
tiffany stock falling from a miss. it is on pace for worst day since january 2015. down a lot. >> here to debate whether that is opportunity, we are joined by julie warner, a tiffany shareholder. >> wearing tiffany color. >> tiffany blue. and liz done, here with post nine. julie, you are feeling pretty good about tiffany. why? >> i feel better now than i did last year. number one, i'm a long-term investor and so i'm looking for great companies, and the stock usually will follow although it ebbs and flows. what they were doing was they were not coming out with enough new collections by the designer that they had, and also they were decluttering the cases. i think that's a great idea, but when you take out too much of the jewelry, the customer cannot buy what the kuss me can't see. they were quick to take care of those problems, and with mr. proskey back as ceo, and a refresh of the board, i do feel
3:52 pm
better. >> liz, what do you say? >> you know, i think they've got a little bit of a brand problem. i think the brand is stale and i don't think it is something they can fix overnight with just a new selection. i like the new collection, you know, i like lady gaga as a spokesman, but i don't think it is going to fix it. i like some of the things they're doing with snapchat, with the filters. but i think the brand is old and stodgy. i think the millennial woman is not thinking of it as a brand for herself and i think that's what needs to happen, which is going to take a while. >> julie, answer to this? >> well, number one i agree with the allilady gaga. she appeals to the younger millennials, but with her appearance with tony bennett she has that 1930-40 classic look. we will see how the new collection goes. tiffany has always been iconic. you're going to spend anywhere from $3,000 to $10,000 and up, you don't want fashion forward. you want something classic and timeless that you -- it is more
3:53 pm
of an investment. >> i know you're a long-term investor. the action like today doesn't get your attention? >> actually, it makes me want to buy a little bit more. >> all right. >> with it down as much as it is today -- it was a little pricey in the '90s, it had run up into this, and they beat last quarter and so there was a run up. but if my numbers are correct, the forward pe is about 19. it is not a bad pe multiple for tiffany. >> liz, part of it is the selection issue and who it appeals to, but also the tourist factor and the traffic factor. it seems like that continues to kind of pop up and be a little difficult to forecast, but it is important especially here in new york. what is happening? >> it is important. i think the strength of the dollar, you know, it is not as attractive as, you know, for foreign purchasers to purchase it here. i think also, you know, it is not as attractive to come here as a foreigner looking to do some of the shopping trips. so, you know, that's certainly
3:54 pm
an important point. but i really want to go back to i don't think that this is a product problem. you know, they're talking about introducing handbags, they're talking about introducing gifts and, you know, the new collection. i really think that the brand is very old and stodgy. >> you just think it is an intangible that happens to companies, that their brand is just not resonating with the consumer right now? >> it is not resonating with the consumer. i think it is fisable but not a quick fix. you walk in the store and you feel you want to hold your breath. you don't feel comfortable. it is not customer accessible which is a millennial -- >> in has happened to other major retailers, you would acknowledge that? >> i would, and it has happened to tiffany in the early '50s. with the new collection they're coming with new designer, we will see. if they can draw more traffic into the stores -- you know, that type of merchandise isn't going to be a very large percent, so we'll see how they do. >> all right. we know you are going to the
3:55 pm
shareholder meeting tomorrow. >> i am. >> keep the smile. >> i will. >> i'm sure you will. julie warner, liz dunn. good to see you both. thank you, appreciate. with the dow up 79 points, we will come back for the closing counsel down in a moment here. >> it will get busy after the bell. we expect the congressional budget office score for the health care bill. we will tell you why it matters to the market. you are watching cnbc, first in business worldwide. but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans x xx xx supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs.
3:56 pm
you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend.
3:57 pm
remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ with e*trade you see things your way. ♪ ♪ you have access to the right information at the right moment. ♪ ♪ and when you filter out the noise, it's easy to turn your vision into action. ♪ ♪ it's your trade. e*trade. start trading today at etrade.com the "closing bell" is
3:58 pm
sponsored by -- okay. heading into the last few minutes of trade. dow up 78 points, but i want to highlight the s&p 500 because that's what the traders have been watching. i can't tell you the number of traders the last few weeks have been watching this 2400 level so carefully. 2402.32 was the previous all-time high that the s&p hit back on may 15th. now we're in record territory right now. what does it mean? well, maybe, you know, it can't be a negative but traders are encourage willed they' encouraged they're doing that. with the minutes of the fed coming out today, we start the yield curve flatten. as rick santelli pointed out the five-year note was the one that reacted the most. yields came down, moderated a bit but we saw decline in yield on the five year note. we saw the biggest declines in the longer date of maturity. dollar index also moved lower
3:59 pm
when the fed minutes came out, signaling that they're taking it very slow and steady as they get ready to begin the normalization process in ernest. we have earnings coming out. i'll highlight it with my friend bob pisani. welcome back. a lot of companies reporting after the bell tonight. >> we are getting a bunch of retailers. obviously what happened with tiffany's was not well greeted by the market. i want to start with the s&p 500 because normally fed minutes don't move the markets, but about 10 minutes after it did. we have a big balance sheet, 4.5 trillion. they're not buying anymore, but the fed essentially saying they're going to cap the limits of how much they will allow to roll off. it is a little complicated but basically the fed saying we're going to be very slow in how we deal with that balance sheet. we're not going to be selling anything, any rush at all. i think the market responded to that. we moved up. it took a little while, i was surprised, about 2:10, 2:12 the markets moved up and as you see we will close at a new high, up
4:00 pm
five days in a row. haven't done it since february. >> that's true. a lot of major averages doing that today. good to have you back. record for the s&p. get ready for all of those earnings and the very important congressional budget office score on the american health care act. stay tuned for the second hour of choib with kelly evans. i will see you tonight again on "nightly business report" on cbs. see you tomorrow, kell. ♪ thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans and the green eyed bull is back. i think for the s&p 500 it was the nasdaq as much as this year, but today it was the s&p closing at record high level. run through the figures. close of 2402 surpasses the prior high from may 15th which was 2404. the dow was up about a third of
4:01 pm
a% to 21,011. so the dow was a few points shy of the high water mark on march 1. 6169 is the prior high, just on may 16th. a four tenths of a percent gain on nasdaq. the russell 2000 just turned positive in the last hour or so and closed up by a point and a half, 1382 for the russell. its high water mark of 1419 was hit on april 26. it will be a busy hour. we have earnings headed our way. we have retail in particular, and we know what a mine field that's been. we have results from hp, guess and williams and sonoma headed our way. the congressional budget office set the release the score for the house approved health care act this afternoon. we will bring it to you as soon as it is out. joining me to talk about record highs cnbc senior markets commentator mark santelli. vice chair and head of
4:02 pm
investment group, and danny hughes from divine asset management with us at post nine as well. mike, we said it before and will say it again, a stealth record and stealth record close but perhaps a significant one for the s&p. >> i could call it grudging and ambiguous. it is almost as if you were trying to make it as low drama as possible to get to a record high, or maybe to try to yank it to a nominal record high even when half the stocks are down. that's the thing i think we have to keep an eye on. when keeping the fed minutes coming out, it seems what the market has done whenever there's an identifiable potential catalyst, it wants that catalyst to be passed so the market can do what it was trying to do other we. after 2:00 you had amazon and google, two stocks up exactly the same in the last six months and a race for $1,000 a share, all of a sudden levitate. both ended up .7 or .8%. i'm not saying it is a false
4:03 pm
ramally, ju rally, just an upward melt. it seems like, by the way, a long weekend coming up so probably not going to get -- >> you had a funny line. you said if you shun auto chain retailers and media you're left with not much more than hotels and tech scott. >> in the consumer discretionary area. investors are saying i want to own the consumer but not in challenge it areas. >> it is amazing how many challenged areas there are and yet the market at record high. if you can't own auto and look at what happened with advance there. even the media stock struggling today. yeah, there are other places happy to kind of push you to the highs. >> it is all kind of floating to the top, to these big, big names and everybody is chasing them like mike was saying. i call it complacent but also an arrogant market. it is saying to me, you know, we had a terrorist act in manchester, many people died, especially teenls and women. the market said it can't happen
4:04 pm
here. that's what i felt the market said. you have existing home sales, kind of not come in well. they actually were expected to be down 1%. they were down 2.3%. markets shrugged it off and rolled higher. then you had fed minutes come out today, the fed basically reiterated what they're going to say, shrink the bloated balance sheet, probably have three rate hikes including the one we had in march. market yawned and went higher. i feel it is too com place enlt, too airing ant. >> i was going to say the narrative has been that it is unsustainable, here are the reasons we are bear issue and why it can't go on. does the persistence say something to you about the fundamental strength of the market or does it seem it is becoming disconnected from reality? >> the market is often disconnected with reality. we have seen it, whether the market is down and it should be higher, or the market is high and should be lower. i don't think it is necessarily that, kelly. i think there's so many signs things are not happening. you know, this administration has cleared exactly zero hurdles
4:05 pm
in terms of what they're supposed to be doing for the american people. we have a lot of concern on the international markets, kind of pointing everything at us, and yet this market is not even budging. again i call it kind of arrogant. >> charlie, let's bring you in on this with some wisdom. what is the state of play? are we all -- serve just kind of hoovering up into amazon and netflix and google, and i guess pepsi today? >> yeah, i hate to say what a lot of other people have said, but it is dangerous to talk about the market. the s&p is doing all of these wonderful things because these big name tech stocks are doing wonderful things. small-cap value stocks are probably down on the year. lots of individual names, there was all of this talk about bank stocks, they're now down on the year. you really have to go sector by sector. most of the people watching their show don't have all of their money in a big s&p 500 index fund. they own individual stocks and it is a much muddier picture. >> let me interrupt you. we have breaking news from the
4:06 pm
tech world, speaking of which sales force announcing a strategic agreement with del. under the agreement dell will use their mobile management platform and cloud services to better unite sales service and marketing unit. coming up, the ceo of the sales force and michael dell, the ceo of dell will join us to talk more about this partnership. before we go back to our discussion, let's hit some of the earnings that have been released. hewlett-packard. josh has those. how did they do? >> kelly, hp ink reported et, revenue 12.39 billion, expectation of 11.93 billion. personal systems revenue, 7.66 billion with margins of 3.2%. printing revenues, 4.73 billion. margins there of 17.4%. turning to the guide, q3 guide, 40 to 43 cents.
4:07 pm
the street was at 43. for 2017, 1.59 to 1.66. the street was 1.62. so guidance roughly in line. i did, kelly, have the chance to speak to hp sprks ceo about his thoughts. he said he doesn't really disagree generally with what he is seeing from industry analysts. remember idc thinks they'll see shipments slip in 2017. he is saying he's confident in ability to act and execute the market and that's what we've been doing consistently, we've been looking at areas of premium and gaining, very attractive parts of the market as services. i did ask him about competition, kelly, with specifically expanding into the pc market. they told us they will be looking at the premium end of that market. he said, i think about all competition a lot. i don't get deinfrastructure by it. is coming in, it puts a lot of pressure on the chinese market initially. we will compete them as we do
4:08 pm
against all of our competitors by playing our own game. i asked about rising component cost that could be potential headache for makers. he said there are certain components that will continue to be tight for sometime because they require a very large investment from these manufacturers to get the supply and demand back in balance. we expect therefore to see increased component costs into the future. we have been managing that pretty effectively. finally and importantly, the hp executives told me they feel forecast stabilization in printing supplies by the end of this fiscal year. the "celebrit the company's cfo saying they've been performing better than predicted, progression from q 1 to q 2 and that gives us line of site in stabilizing revenue. back to you. >> stocks up almost 4% now, mike, climbing after hours. you know, in this post spin-off, this is more of the sort of old
4:09 pm
school busness. they have plenty of new school stuff going on. >> yeah, it seems like a revenue beat is music to the market, in a company projected not to be a top line grower at all. if you can reaffirm guidance, roughly get on target, certainly not an expensive stock. it is cheap in the way a lot of old tech is. so i think it makes sense -- it is a round trip, already in the highs two years ago, down a lot and doubled in last year but still not expensive. >> you know, i'm a subscriber to hp inc. this is pricing to me. it is a subscription model for your ink and cartridge and they send it to you. it is great. i don't know if you have it, charlie. >> just the rumors of its death were greatly exaggerated. people are still printing a lot of stuff. it is not a growth business but a good value stock. it will be around five years from now. >> up 6% after hours. pretty good move for hpq there. send it to julia boorstin.
4:10 pm
what is happening? >> reporter: hey, kelly. snapchat is trying to rule out buyers with discount coupons and bonuses. the article here says agency execs reported that office started last week and that the offers extend to mid-june which is when snap's second quarter starts to wrap up. the theme of the article here is that snapchat is working to show good results in the second quarter and is doing what it can to try to lure ad buyers to spend more on the platform. we reached out to snapchat but do not have a comment from them just yet. right now we see snap shares trading down about 1.6%. kelly. >> i can't imagine, julia, anyone offering discounts for the product, just do they need to get those ads, right? >> yes, so certainly there's a lot of pressure right now to show growth. we saw the stock drop dramatically after their first quarter reports were -- their
4:11 pm
reported earnings were lower than expected. so in the second quarter there's more pressure than ever for them to show growth, not just of their users but also of ad revenue and it could be part of that. >> danny, some reaction here? >> hi, this is what being public means. i mean you have to constantly show gloegt, quarter over quarter. being private is nice. you don't have to do the same kind of thing. i think it is a big adjustment for snap. i think there's probably value, maybe even under $20. we don't hold it but we're watching it. >> only at $20.20. >> that's true. >> i mean obviously this is what being public is about, but also if in fact it is about kind of a short-term gimmick, front loading some ad dollars and trying to goose one carnes, it is not necessarily going to be received that great even if it is not that big a deal in the grand scheme. >> anything, charlie, you would add to that? >> this would be the kind of thing we avoid like the plague. not sure at all this will be around in ten years.
4:12 pm
>> yeah, as danny said, it is brutal. >> the hp-snap trade. >> my kind of trade. >> futures down 1.5%. charlie, before we let you go, where do you see opportunity right now? >> my favorite names are kkr and blackstone. people can't own them because they're not in the indices because their partnership, the stocks are really working. when we get a drop, they're going to become corporations and get bid up. we still love blackstone, kkr and lizard. >> you must have loved the news of the saudi partnership with blackstone. >> absolutely. $40 billion new fund. this is a great business, trading at less than 10 times earnings, and it is all because of the shift to passive investing. everybody is putting their money in index funds which can't own blackstone. it is a great business. >> danny, what about you? what do you think is interesting here? >> i would agree a lot with charlie, ee special on the passive tip. i think that lends itself to the story we were talking about earlier in the hour where, you know, everything is staying
4:13 pm
where it is and that has a lot to do with passive investment. i think a lot of people have actually set it to forget it, especially in their retirement accounts. so that could be the reason why we're not seeing the vix so strong. i like a couple of names like sf industry, which is fertilizer industry, the stock has come off highs. i like the yield there. >> remember five years ago fertilizing stock was the most exciting thing in the market? >> it was a massive emerging market, part of the commodities. >> i'm sure now it is a more trek adventure point than back then. >> yes. >> thank you, for joining us. the congressional budget office set to release its report on the republican health care bill this afternoon. we will see the impact it could have across the health care industry and whether it means the house would have to vote on the bill all over again. don't miss a interview with the ceo of sales force and dell on the strategic agreement just
4:14 pm
announced. you are watching cnbc, first in business worldwide. whether you're after supreme performance... advanced intelligence... or breathtaking style... there's a c-class just for you. decisions, decisions, decisions. lease the c300 sedan for $399 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.
4:15 pm
4:16 pm
the future isn't silver suits anit's right now.s, think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. ♪ ♪
4:17 pm
welcome back. we're looking at some movers after hours on a day when the s&p 500 just close willed at a record. send it to d.d. roy. >> reporter: that's right. pure storage just reported earnings and the data source company seems to -- the stock is going up right now. at the moment up about 10% after some important beats on the top line the revenues came in at 182.6 million, beating estimates of 177.5 million. on eps it was a loss of 14 cents versus analyst's expectations of a loss of 22 cents. also the company beat on the q 2 guidance. the revenues came in slightly above estimates. a couple of other numbers we will be looking for, other color at least the call, are going to be any information about some of their new products in the pipeline, and also investors are going to be taking a close look at the r & d numbers and how much they're investing. that could be a possible headwind but, again, the stock price is rising, up about 10% at
4:18 pm
the moment on these important beats. kelly, back to you. >> yeah. 10% pop, thank you. we also note reporting after hours the stock is moving lower in a big way. then we're going to talk to sales force, a lot of different movers in the cloud mere. >> especially when you have niche players. the stock has been cut in half in the last year or so, in recovery mode. not a lot of heavy stock but one that is show me and i think this will push off some of the fears. >> that's the case with pure storage you were lying out. fournette app it is a decline of about 5%. you know, these are businesses where everybody is trying to have that prime real estate. >> right. >> as more and more enterprises move to the cloud and want data analytics for the cloud. it feels we're at the top of the cloud height cycle frankly. >> it is close. we talked about divorce the other day, but net app is almost on the flip side in the sense i
4:19 pm
think the market has been giving it a lot of credit for what it is going to get done. this is a backing off from an elevated stock as opposed the relief from a depressed one. >> we will get you more of the earnings movers in a moment. a key housing metric disappointing in april yet again. diana olick, what happened last month. >> i don't know. look, it wasn't as bad as the new homes sales number yesterday but sales of existing homes for april which we got today fell more than expected. the issue is simple. you cannot buy a house if you cannot find an affordable house. the number of listings dropped 9% according to the national association of realtors and listings are slimmest at lower end of the markets. that's why sales of homes priced under $100,000 fell 17% year over year. now, at the high end there's more supply, and that's why sales there bumped up. >> you also have a really strong stock market right now, and it is the high end buyers that have exposure to the strong stock
4:20 pm
market, who benefit and can take advantage when prices are up in the stock market and maybe kmoos to take money out and put it in the housing market. >> but, again, that's not where the strongest demand is today. it is at the starter home level where demand is so strong that average days on the market actually fell to less than a month, 29 days average to sell a home. that's the lowest since the realtors started tracking it in 2011. i'll tell you in some neighbors around here they go in three days. kelly. >> it is crazy, diana. the only explanation i have for april -- and i love the car alarm is going off. of course it is going off now. >> i know. i thought they don't do that anymore. >> i thought so too. anyway, the only explanation i have for april weakness in the housing market is they must have pulled activity forward into february and march. >> well, maybe. but, remember, these were homes that were sign, contracts in february and martha closed in april. if you try to play the weather game on it, it doesn't work for the closing. plus, when you look at buyer traffic, mortgage applications,
4:21 pm
pending home sales, all of the ones that are more close to now, back in april, they're not pointing in the right direction either. it is that limited supply of homes for sale keeping buyers from being able to get in the home, some staying on the sidelines. >> true. some construction bottle necks and things holding everybody up. we'll see. diana, thank you very much. our diana olick in washington there. and then a car burglary. coming up, don't miss our interview with marc benioff and ceo of dell on the agreement just announced. now it will face new online competition from a very old rival. details when we come back. 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? the value of capital is to create,
4:22 pm
not just wealth, but things that matter. morgan stanley
4:23 pm
4:24 pm
. welcome back. we have more earnings to hit here. how about williams sonoma, those numbers just released. courtney reagan has the run down. >> reporter: hi there, kelly. i will give you a couple more for extra credit. williams sonoma beating with 51 cents adjusted. wall street was looking for 49 cents. this was for the first quarter. revenues coming in line at 1.11 billion, just slightly positive on the comps, 0.1. remember, williams-sonoma owns pottery barn, west isle as well as the name sake brand. west isle was the strongest for the comp, up 6%, williams-sonoma up 2%. pottery barn down 14%. which yams-sonoma giving strong
4:25 pm
revenue guidance for the second quarter. shares up sharply for williams-sonoma. i want to move to guess, which reported a smaller than expected loss of 24 cents. revenues beat. comps north america down 15% which is was better than expected. light earnings guidance, and it does look like the performance in europe and asia was stronger with sales up 23% and 17% respectively. you can see guess shares are also sharply higher. i will round it out with pvh, which is the parent company of calvin klein and tommie hilfiger. this retailer also beating for the bottom line, earnings of 1.65 compared to $1.60. we've got a slight beat for revenues as well. if you look at the individual brands, calvin klein revenues up 5%, tommie hilfiger revenues up 6%. pvh did raise full year's earnings guidance, still calling out volatility in the macro
4:26 pm
economic environment but shares up sharply after hours as well. kelly, back to you. >> a big win for brands in this environment. courtney reagan covering retail there. sales force and dell are teaming up on a strategic agreement. ceos marc benioff and michael dell will be here in a couple of minutes to tell us about the deal and how it will impact shareholders and customers. stay with us on "closing bell." , but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.
4:27 pm
4:28 pm
4:29 pm
welcome back. a rally on wall street today. dow up 74 points and 6 point gain for the s&p. 2404 on the bell there, beating the prior high by a couple of points. nasdaq up to 2463. the russell positive to 1382. time for our cnbc update with sue herera. hi, sue. >> reporter: hi, kelly. here is what is happening at this hour. a bombing killed five civilians and injured six more in the somali capital. fighting to over throw the government and drive out the african union peace keeping force, claiming responsibility for the blast. there's some new security measures being tested in airports across the country. the tsa is requiring passengers at about a dozen u.s. airports to put electronics larger than a cellphone in a separate bin for extra screening.
4:30 pm
that includes tablets and e readers. a section of california's iconic pacific coast highway will likely remain closed for months after a massive rain-driven landslide that drove that mud all the way down to the pacific ocean. it marks the third major closure along the big sur portion after the wettest winter on record in that state. and the 29th annual fleet week in new york kicked off today with the parade of ships traveling up the hudson river. fleet week is a seven-day celebration which honors the members of the u.s. navy, coast guard and marine corps. and they are in new york city the whole week. that's the news update this hour. kelly, it is a sight to see as they go up the hudson river. >> it is. i'm to try to catch it this weekend. i was thinking, i'm glad i did the california road trip last year because it was tough enough. >> i know. >> scary stuff. >> it really is. they say it is about 40-feet deep, the mud. it is incredible. it really is.
4:31 pm
>> oh, my gosh. wow, too bad. a lot of business depends on that, too. thank you, sue. >> you got it. >> see you tomorrow. time now for fast take. first up, mooldy's downgraded china's debt last night. it was the first time they downgraded since 1989. does anyone care? do you care? >> i don't care very much. i think the chinese authorities care because of what it says about their public image in the world. >> we know they care. >> they push back against it. in terms of people involved in the markets, it sort of parrots this big scary case we know has been out there a long time, a whole lot of debt driven by government stimulus and spending, not a lot of debt owned outside. >> i want to read the following from anthony peters, in the middle of last decade they put a bunch of aaas on synthetic ceos so there's a post crisis cynicism. >> right. if you have country ratings, you
4:32 pm
have to have them on standards. it puts china below. >> after the stock has tripled. if it called itself the vision fund, this launch, i'm wondering if it is a little back warld looking. >> it is a good question. we don't know when soft banks bit the stake, so that's one reason. there's no doubt nvidia is a very well discovered play. >> not to mention google came out with a trick that might do some of the things nvidia ka do and everyone is trying to get on the space. >> an $80 million company, from 2001 to 2015, inslid ya' stock did nothing. it was literally flat and up hundreds of percent. >> it has been a great story. next uhm, j crew plagued by weak sales. told the "wall street journal" the company missed the text fuel fast fashion trend and "a little too elitist in our attitude." look, his reputation is at
4:33 pm
stake. can jake be rescued at this point? >> what form -- i think what he means by that is they were a little too much design orient. said, this is our look this season, take it or leave it as opposed to being adaptive. >> jennifer lions came in, they has been moved out and they're trying to go back to what is appealing and comfortable to women. >> historically it is a mail order, half of the sales are from there. i don't know how -- i'm wearing this suit. >> you're a member of the 1% liberal elitist media, michael. >> i doubt that, not the elitest in new york. >> finally i know not to call it razor wars but schik is going to the consumer to sell for select razors, p & g offers gillette on demand. can they get mojo back from the dollar shave club? >> i think they can pare with it a little bit. this is basically selling razors
4:34 pm
that fit on gillette razor handles, that's the idea. there's no doubt this will be price pressure all around. i do think that shavers -- i mean i can speak for myself. you're pretty particular. so if the performance is the same, you will buy it for cheaper. if it is not exactly the same -- >> what is curious about this is now the knock on some of the dollar shave club hikes is they're not flexible enough in their monthly pricing. what schik and as well the parent company, what they're trying to do, and p & g, is offer you more flexibility. if that's the truth, i would be shocked if harry's or whomever it is can't get more flexible at this point. >> i would imagine they could, i agree. i think those guys start with a bit of an advantage which is that razors are one of the most irritatingly expensive things, at least in terms of a sticker shock value, that you have to buy on an absolute basis. >> yes, i have experience with this as well, and the fact they're in a plastic case.
4:35 pm
the whole experience was horrendous. what do we think is the next area of human -- if you look at what one of the conglomerate consumer staples, spend each one out, sell it cheaper on subscription basis to the customer. >> i don't know exactly, but it is where there is a huge brand premium and a predictable consumption pattern. people talking about tide detergent as being the thing -- it is so much more expensive than what is comparable because people are loyal to it. the question is, will that be one of the areas. i don't think you will have dollar wash club. >> i think you absolutely just started something in the dollar wash club. >> raise some money right there. >> let's quickly check in on retail movers after hours. it looks like the brand story is intact this afternoon. pvh among the other bloomers to the result here also results from williams sonoma showing strength in for example the name
4:36 pm
sake brand. and some real weakness in pvt by the way. also we have guests, which if i am reading this correctly rebounding from a big drop after hours. we saw the shares -- yeah, anyway -- >> looking after hours, it doesn't seem like it is the after hours close. >> that from today, yeah. >> i was looking, guess was -- >> yeah. >> they bounced double digit percentages and only back to where they were trading two weeks ago. >> guess reported a loss, less than expected. so those shares are popping. here is williams sonoma which is up 14.5% the latest we've got. a lot of green on the screen, and pvh up more than 10%. b -- up 4%. we are breaking news on the house bill to replace obamacare.
4:37 pm
kayla has the cbo for us. >> the important numbers from the cbo score, the apples to apples numbers are those numbers that assess the market over the next ten year period. the cbo finding the amendments made to the american health care act would see 23 million fewer people with insurance between now and 2026. that's actually a slight improvement from the previous iteration of the bill that saw 24 million people would be without insurance based on that pl previous version. also the cbo finds there would be a net reduction of $119 billion to the reduction. that's a little narrower than previously. it was $150 billion on march 23rd. before that it was $250 billion. so you can see that the effect on the deficit is actually narrowing as they make these changes. so the cbo is saying there would be a net reduction of $119 billion. we're still going through the premium information because the cbo actually goes into great detail about exactly what the
4:38 pm
introduction of these waivers will do on a state by state basis, because one of the amendments that the law maujers put in were the effect of states being able to opt out of having to provide certain mandatory health benefits and the cbo goes into great detail on that. we are working through it and will bring it to you when we can. >> let's bring in eamon javers for his analysis. while the long awaited score has finally come out, it appears a little better than expected for gop, right? >> that's right, kelly. the $119 billion number on the deficit kayla just gave you is an important one politically because it was the land mine here. all through the afternoon we didn't know what that number was going to be, and because the republicans are using what's called the budget reconciliation process it has to be deficit neutral or better in order to stay within the rules. if they had blown up a hole in the deficit, that would mean
4:39 pm
they couldn't use that 50 vote threshold in the senate anybody. they can still do that now that they have the $119 million numbers. the republicans avoided stepping on a land mine here and can use the reconciliation process. the other thing is it will be interesting to see after we have the opportunity to dive into the numbers how they figured the state waiver process, because the amendment kayla was talking about is a tricky one in the sense the cbo has to score it but doesn't know which states will take the waivers or not. they have to come up with scenarios whereby they'll say, if this happens, then that happens. there's no guarantee that states will take the waivers at all or what number of states will take them. so predicting the future on that can be really difficult. >> all right, eamon. thank you and stay with us. plus, we'll get more reaction and thoughts from -- rich meade who is prime policy group vice-chairman. thanks for joining us. terry, key take-aways for you
4:40 pm
here? >> well, kayla and eamon have done a good job of summarizing the basics here. i would say politically it is game on. the bill can move to the senate and the senate can begin working it. that's generally good news for the markets by the way because the aca process needs to continue in order to get the budget savings, so that tax reform can actually happen later this year or early next. so generally speak that's all good things. >> yes. >> i think eamon has done a particularly good job in describing the difficulties here in figuring out how states will react. >> rich, that being the case, the worst case scenario for the gop and if you want to say for the markets hoping to hold trump train moves along would be big numbers here, worse than expected, maybe revote necessary. don't feel like it is off the table, is that right? do you expect people to feel a
4:41 pm
sense of excitement and enthusiasm about moving the acha through the senate and moving on? >> it is good news for the senate in that the debt ceiling reduction numbers held from where the house report -- actually, i take that back. these track fairly closely after various amendments were passed in the house, and it also shows that the so-called mcarthur amendment that gave the states some flexibility helped lower the number of americans who won't be ensured on those plans, that's helpful and maybe gives courage to senate that they may explore options to give further access to states to help address the uninsured number in the report. >> mike, just want to add a little bit more context here as well. so the cbo is saying the total number of uninsured would be about 51 million, that's compared to 28 million under obamacare. they're also projecting about half of americans would live in safe -- that wouldn't ask for waivers, to opt out of the
4:42 pm
preexisting condition. right. i think it is about trying to figure out what it means for the shape of the senate bill and how that resulting senate bill is for prospect for relatively quick passage in the house again. it seems to me like modest changes. now, if you were afraid as a moderate republican in the senate of the big headline numbers, there will be 15 million uninsured at the end of the period because of this new bill, are you still afraid. i don't think it changes the calculus. we just heard about the tuesday group chairman stepping down yelled. where does it leave the orders of this legislation becoming lost? >> i'm still pretty bullish this all gets done. our view is that it is about 80% likely to happen by the end of july, right before the august recess. but what i'm looking at is progress by the end of june, about five or six weeks away. if the senate can make real progress and we can get an end
4:43 pm
game on this in july, then we're still in train to do 2018 budget and tax reform. if it goes longer and slips into the fall, then the entire trump republican agenda may well be imperilled. >> eamon, we are getting additional color and comments out of the cbo here. eamon, how important is this score period to the legislation? because it has felt quite important, but is it necessarily the make or break one? >> well, look, speaker paul ryan took a risk by passing the bill without a cbo score. he made a lot of members go out there, walk the political plank without knowing what the damage would be or what the bar bell would be. now that we know it, it looks like that was a pretty good gamble by speaker ryan. we will wait to see what else is in here below these top line numbers, but at least for now it looks like the process can continue pretty smoothly into the senate.
4:44 pm
that's a big win for house republicans. they're going to feel good about taking the gamble they took, but, boy, was it a big one. >> thank you for joining us. eamon, thank you. terry haines and rich meade reacting to the cbo score we heard about. the ceos of del and sales force will join us and talk about the strategic agreement announced this hour. stay with us. fidelity, where smarter investors will always be. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing.
4:45 pm
4:46 pm
welcome back. minutes ago sales force
4:47 pm
announced a strategic agreement with dell technologies where dell will expand the use of sales force customer relationship management or crm platform. in a cnbc exclusive we are join by sales force ceo marc benioff and michael dell of dell technology. welcome to both of you. this is a very cross country type of interview happening here. it is wonderful and we'll make sure we can kind of keep things moving around. but, marc, let me just ask you first what is so key to you about this agreement. >> well, think, you know, every company is going through a dramatic digital transformation today, but i don't think any company is going through a bigger transformation than dell. look, there's no ceo who has done a better job of that than michael dell. he took his company private. he has acquired emc. he has created this incredibly important technology company and that's why i'm so excited about the relationship between sales force and dell. >> mr. dell, what will this allow your clients or customers
4:48 pm
to do now they couldn't previously? >> so, at dell technologies we have almost 40,000 sales people and about 200,000 channel partners, and we're enabling all of them with the sales force tools as we have really for over a decade, and now with the combination of dell and emc and vm ware and booming, we created this new company, dell technologies. salesforce is a fantastic partner. >> michael, is it fair to say that your company's ethos at this point is very much a bet on the private cloud in contrast to the public crowd services amazon and google offer? >> well, you know, marc is building a cloud, you know, largely powered by dell technologies. what we see is the cloud is actually not a place but rather a way of doing i.t.
4:49 pm
so you're seeing this multi-cloud world emerge where there's certainly a public cloud, there's soft wares and service, there's managed service, there's hybrid cloud, on premise. there's no question we are the leader in infrastructure solutions. so, you know, we're selling more servers and more storage and more software to find data center, more virtualization, you know, than anyone on the planet. this cloud is an operating model is being deployed broadly. the market is doing it, the public clouds are doing it, and now you're seeing the software defined data center come into large companies an even small companies. we have a product that's $25,000, that starts at zero money down, that we charge monthly down. it is a cloud in a box. so, again, we think of clouds not as a place but as a way of
4:50 pm
doing i.t. >> right. >> one that mark very much pioneered. >> michael, all the same, i do recall you told our john fortt not long ago you think the public cloud in some ways is too expensive. i think you actually said you could save snapchat some money, and kind of think of these cloud services as a cheap incredible opportunity? but are companies finding they can do it cheaper in-house? >> we are seeing a boomerang and repatriation effect as companies run to the cloud. what they realize in the cloud is not all work loads are appropriate. i'm certainly not saying there is a roll, there is, it's a multi-cloud world. you will have software service. when you modernize the infrastructure, particularly with a software defined data center, using the latest tools that we have, we've had many customers tell us that that
4:51 pm
infrastructure is less than half the price of a public cloud for the predictable part of the work load, which for many customers is 85-to-90%. mark, himself, he went to build out his cloud. he found that was less expensive to buy equipment from us than to put it all in the public cloud and many customers are finding the same thing. >> mark, i was going to ask you about that you said a lot of you are offerings. why is this a further step? you call this an agreement. are you working together a lot? is there a budding romance here? a bromance? >> well, yeah, michael and i definitely love each other. i'll tell you something that what michael said is 100% right, which is that when you are running a company like salesforce, you need a lot of great relationships to build a great company and dell has been a critical, critical relationship for us to build our
4:52 pm
own infrastructure. of course, we have a phenomenal relationship with amson and watson and an ai alliance that's been really important. when you look at somebody like dell, what's powerful here for us in the united states, we run our own data centers, we need this incredible capability that michael offers. not just in computing, but also in storage and so many other key areas, networking, on and on. it's all made possible by this incredible company that he has put together and this is transformational for our industry. >> that is why i'm so excited about dell and that's why i'm so excited about dell and salesforce coming towing to make a digital transformation, not just for dell but all of our hundreds of thousands of commerce. >> as michael has put it. moving into a multi-cloud world,
4:53 pm
there are customers that want a lot of different options to pick from. at the same time, on saturday, it doesn't feel like we're at the top of a bit of a hype cycle when it comes to all of these cyclings, you called it a transformational deal. what sets it apart from the offering already in place across this industry? >> will, you know, sales? force just turned 18, you know, this year, we're passing $10.3 billion in revenue. we reported our results last quarter, growing 25% for the quarter. at this rate, no company has grown faster. what made that possible is crowd computing. not the horse, but the idea that companies don't have to buy the software and hardware and capabilities to get going quickly. the reality is michael has a phenomenon opportunity to help him, not just ours, but so many being successful, that means his
4:54 pm
sales, service, marking, needs to be deployed right now and he needs to create customer success right now. we will help him do that. >> this wasn't easy to pull off. we have california, texas, new york. thank you u thank you all for joining us today. mark benioff and michael bell. meantime, aerie is getting a 2005% jump here. we will get all the details after this.
4:55 pm
4:56 pm
. >> welcome back. let's sends you over to meg
4:57 pm
terrell. >> the company aerie is saying glaucoma drugs released pressure in the eye. the stock is up 24% in the after hours. the company is saying if they also have successful results on an ongoing safety study, they plan to apply for approval. back to you. >> after the spike in puma, it's a banner day. thank you. the congressional bug office releasing its score for the new health care bill a few minutes ago. kayla. >> reporter: a quick summary, kelly, of what we we heard from the congressional budget office a few minutes ago. under the version of the ahca, the house passed a few weeks ago. 23 million americans would not have insurance. that's an increase over the current estimates for the current law that is in place. >> that is an improvement over the previous version of the law.
4:58 pm
but that comes at a cost of about $dlirt billion to the deficit. the ceo saying it will be about $119 billion compared to $150 billion. it's complicated where it comes to premiums. the ceo acknowledging the states would have a wide range of options for the next couple of years, premiums would rise, first 20%, then 5%ch then it depends on whether states apply for these waivers, they can see premiums lower from 4 to 20%. one thing is clear, though, kelly, for older and less healthy people who are buying into these exchanges, they will see tear premiums rise. in some cases several hundred percent. but that is the way this law is structured. >> that is one of the ways they were able to get the costs for other healthier people lower. but expect that to be something that people end up coming out and criticizing. finally the speaker of the house sheparded this bill released a statement, saying the speaker
4:59 pm
aaca lowers premiums and the deficit. certainly, speaker roon is seeing this report, kelly, as a win. >> that's for sure. thank you. mike, it also seems clear they won't have to revote on the bill in the house. this now moves on to become, the question is about the senate process. >> right. so if the questions were before we bought the score, what does it mean for how fast things can move versus what we thought before. it's ratified that things can move along. there will not be another unknown, now it's a political question of whether these types of changes are uninsured and the power is debatable from the final bill might look different, but this probably feeds into a bit of it looking much like a house bill that was passed. i wonder, we came off a closing high for the s&p 500. does the set us up for further gains that people it's back on track? >> i don't think the market is in the business of exstrap late any policy progress. i feeling it will not come as a
5:00 pm
shock. it will not stand in the way of further gains. right now, look, we talked about it before, every day, a different group tends to take the way. harmly it's been the growth stocks. it hasn't been a matter of kniting it together. >> pepsico continues to be up there. i love this, google. amazon, michael, thank you so much. >> that does it for "closing bell." >> "fast money" start right now, overlooking new york city's time's square, pete najerian, karen finerman, guy adami, the budget office released the house passed bill. we'll tell you what it can mean for the future of those all important trust surplus. more and more electric vehicles hit the road. will oil go the way of gold? later autos, housing, retail stocks under pressure, we'll tell you the one group

41 Views

info Stream Only

Uploaded by TV Archive on