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tv   Closing Bell  CNBC  June 6, 2017 3:00pm-5:01pm EDT

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a serious note on facebook, you know, 6 million people felony convictions in the country, wonder where there's not job growth? make it ease year for people to get jobs. did something 20 years ago, served the time, you should be able to go back to work. >> thank you for watching. >> closing bell starts right now. ♪ hi, everybody, welcome to closing bell. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. ceo confidence hit the highest level in three years. hopes for the president's pro-growth agenda still high, details of the new survey from the business round table coming up in a little bit here. >> it's really bitcoin's and bonds, i mean, those are the two big stories in the market today. we'll have more on that later. both rallying, by the way, the ten-year yield at a new low, and
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bitcoin at a new record as the price does too, nearing $3,000, 2818, as we speak, an an investor said it's in a bubble, bitcoin is. >> you think? >> details ahead. amazon takes a a shot at walmart again, this time by offering discounts on prime membership for customers who receive government assistance. we'll have a good old-fashioned debate on amazon versus walmart coming up in a bit here. i'm telling you, it's going to be just amazon versus walmart in retail industry at some point, right? >> i think maybe amazon and everybody else, but you're right. they are -- they are making some right moves. >> they are. >> walmart's coming back. that's definite. that's in a bit. beginning with breaking news, president trump is scheduled to meet with congressional leaders at the white house. eamon is there. what are they going to talk about? >> reporter: yeah, hi, bill. they're going to talk about the legislative agenda here on
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capitol hill. the white house briefing reporters yesterday saying they are still focused on the idea of getting tax reform done this year. they say they expect to have that done by the fall. they need to get health care done this summer, they say, and they are also talking about infrastructure before the end of the year, all of those things still in the mix. they have to figure out a way to move all that with the congressional leaders today. spicer just wrapped up the briefing moments ago meeking a couple points of news. there's transportation business executives here at the white house this afternoon for a listening session. he also said, when i asked him whether or not the president is going to watch fbi director -- former fbi director james comey's testimony thursday, he said the president has a very busy day, but did not rule out the possibility he might carve time to watch james comey's on tv. the president's tweets are official statements from the president of the united states, clearing up a bit of dispute here about what level of
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seriousness should be given to the presidential tweets. and then, finally, he was asked if he had confidence in his attorney general, jeff sessions, and sean spicer had not talked to the president about that and could not offer an assessment that he had confidence in the attorney general or not because they had not had the conversation yet. that's striking for a press secretary to say although spicer put it in the context of the fact he had not asked the president that specific question yet. the idea that a white house press secretary from behind the podium would not say that the president has confidence in the attorney general is something that's going to get attention in the hours to come, guys, back to you. >> interesting development here. the times had the story just saying that the president was displeased with the fact that session rescued himself for the russian investigation, ultimately leading to the appointment of the special counsel, we know how the president felt about that, and meantime, reportedly 19 legislative days before july 4th, so, you know, even with the meeting on healthcare and taxes
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today, how much time do we have to get something done? >> reporter: well, look, it's crunch time. you don't get the feeling there's legislative momentum now on capitol hill. wait to see what the members of congress say today, but this president has an ambitious agenda with little time to year to accomplish it in terms of legtdive data as pointed out. whether they squeeze it in is anybody's guess here. here at the white optimistic. >> i don't know if you heard, but the majority leader in the senate told reporters he feels senator republicans are getting close to having a health care proposal, but no time line. thanks, get back to the press briefing at the white house. a new survey of ceos shows confidence in the economy is hitting a three-year high. here's the full details. >> they are not giving up the agenda just yet. this is a survey given by the business round table, taking the
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temperature of 148 ceo members about the plans for the next six months, and about their optimism generally in the u.s. economy. they show that ticked up all be it slightly showing, yes, the highest reading in three years, but roughly flat since it was taken in march. on sales, the group remained bullish. on capital spending, they expected small increases in the next six months, and plans for u.s. hiring in the period dropped as well as outlook for this year's gdp, and they expect 2% gdp for this year. that's down from 2.2%. they are pinned by and large by tax reform. and then ceost would be quick to reduce plans, quote, 50% said delaying tax reform means delaying capital spending later saying about overseas cash said at the margin we've been driving
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capital overseas. we've to do this, do tax reform, it's hurting our country. the survey took place between may 3rd and 20 for three weeks when you remember the house passed its version of the health care bill, then the president's fired then fbi director james comey's, and, obviously, there's a lot for washington to be busy with in the meantime, but corporate america for now is not losing sight of the optimism just yet, guys? >> kayla, thank you very much. something to talk about there. closing bell exchange, slight down day for the stock market. bonds up as kelly mentioned. bitcoin, gold is at a high for the year now, and joining us now, michael farr in washington, keith bliss here at post nine with us, and rick santelli checks in from the cme in chicago. struck by the chart that kayla showed of optimism, looks like the stock market. just holding steady for quite a
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while here. >> going nowhere. stuck in the middle and no one seems to care. >> waiting for something? what do you think? >> absolutely is. market's on the knife's edge. if you look at the four major averages, they are positioned well from a technical standpoint. my quantitative models suggest that as well, but we shouldn't ignore troubling signs out there like you just cited two of them. the ten-year is at a year low, gold at a year high, the two ten spread has come in 18 basis points in just one month. that started -- that could be bad news for a lot of sectors, mostly financials. >> people start thinking about b buying on the downside. >> a cheap fix. >> that's right. you think about the stock market being on a knife's edge, in those situations, market can fall off the map quicker than to rally up. that's why you invoke protection
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now. >> mean time, you said pretty remarkable how much rally was seen in the names, amountson, apple, all the rest, right? >> it really is. i mean, they have driven so much of the s&p so far this year, and those five names, apple, google, microsoft, amazon, facebook, they represent now about 12% of the s&p 500. they are up over 350 basis points, and so that represents about 35% of the whole return so far this year, and leadership's narrowing, signs of concern, but one thing i heard in the ceo survey is that the ceo sound like the rest of the market. they sound kind of optimistic, but they are still looking for tax reform, and everything's hinging on that, says jamie dimon. >> yeah. it -- a lot of optimism there. i guess hope is what you say, fingers crossed. so professor santelli, explain
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this. i goes you could argue bonds and gold are safe havens or hedges, whatever, but how do you explain bonds going up, maybe on low inflation expectations, but yet gold is going up, the ultimate inflation hedge, what's going on here? >>. >> because we only get to trade a portion of the treasury markets. one-third of the tradeable security were held by central banks, leaving two-thirds for the rest of us. that 33% makes a big difference in terms of how the price reacts where yields go, and the signal that sends. if we're at 75 basis points higher, i don't think we'd be worried how rates affect equities, and it's not a trick to get rates up that much, two, three days of selling by central banks probably would be just the ticket, but we're not going to see that, and i'm being comical here, but in the end, i'm not sure what the rates mean, how we should react to that stock. i'm operating under the premise
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that volatility is something that shows up in attendance in tops and bottoms, not seeing that. look what we have today. we have the biggest job openings ever, job openings, 6.044 billion. quicks down, layoffs down. 1.2 people compete for every job in the beginning of the registration, there was 1.9 people competing for the job. there's a disconnect here. everyone says it's the skills gap, the skills shortage. maybe that's true. maybe it isn't, but the issue i see is not trying to define what it does to damage the target, but why we have so many data points, good and bad, market today, we learned one of the answers. if we had 4.3 unemployment rate last week, 16-year low, why isn't it showing up anywhere? isn't that the bigger question? >> but, and, rick, with those
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jobs open, it also goes to the labor force, and the labor force has been on -- has been declining, right? the work force participation rate down, productivity for the year was looking flat, unless we have more labors, more hours worked, no productivity. >> 104 million people of working age not working, yes. i completely understand but these are signals we pull hair out trying to reconcile what the marg market's doing, and there's no viable answer why there's no growth why there's job openings. >> and -- >> absolutely. >> even as people debate, keith, the level of the market, whether it's in a bubble, mark cuban suggested it's bit coin described as such. we know these things. it's not just big cap names, but people are spending so much
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time, energy, and money on these things. >> people are looking for the next unicorn no matter what it may be to get hands on opposed to a secondary transaction in other names. >> we have painting too going for 110 million. >> yeah. because those kinds of assets have stores of value and it's tough for people to gauge what's happening, and, again, this is not unusual with a market trending sideways. i was, believe it or not, a boy, but read the history in the 70s, similar reactions, and then crash for two years and down and then came back. we seem to be in that -- that was back in the days of the nifty 50. big tech names are the nifty 50 of today. >> you're the second person to say that, harkening back to the nifty 50, that was narrow leadership, but now we hang on six stocks here counting tesla. >> after the crash, it was a bad two years for the stock market, and we were in the wilderness
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for a while. that's why i think it's incumbent upon everybody to be cautious here today and to rick's appointment, there's a lot of things not adding up. two more, two of the sec tar leaders recently have been consumer staples and utilities. that's not a growth stock market that i like right now. >> no. >> all right. >> like the 70s, complacency was high. it's still high. should be a warning to all of us. >> right. >> well, i won't go there, but, yes, a lot of other similarities going on at the time as well. >> now i'm curious. >> in a commercial break. >> 45 minutes to go, dow down 45 points. we've come back a little bit here, art said, look, oil closed at a 48 bucks a barrel to help. seen green for the first time in a while, off the lows, but a weak session, s&p down two, nasdaq barely lower. >> hanging our hat on $48 oil a positive for the market, we have a problem. amazon going after walmart, a
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steep discount for prime membership. the latest move coming up. when a major department store chape's ceo sounds, we listen. what retail stock is in the cross hairs and why. you're watching cnbc, first in business worldwide. hey, i've got the trend analysis. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn. looking from a fresh perspective can make all the difference. watson, you gotta learn how to take a hint.
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she is real. the mummy. rated pg-13. another news alert on uber. what's going on? >> guys, according to a source familiar with the matter, we can confirm the 20-plus terminations reported earlier at uber as a result of their own internal investigation. we can also confirm that uber's law firm looked into 215 claims and took no action in 100 instances. not all claims should be noted involved sexual harassment, but included other claims of retaliation, discrimination, and other issues. now the 20-plus terminations were based on a variety of these claims. we're told that an executive summary of the report, independent report, will be discussed at the next all hands meeting. that's next tuesday.
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separately, someone is telling me that the firings in this round included mid-level, low level, and high level employees. also, guys, told that the ceo of uber was not at the meeting today, that he is at home in fresno with his parents, of course, after suffering, you know, major tragedies a few weekends ago. we'll update you as we hear more, again, we will hear the additional report next week. >> thank you. as travis parents tragically died in a boating accident, his father severely injured. thank you. a news alert on another private company now, pinterest, what's happening there? >> kelly, well pinterest raised additional $150 million, and now the last time they raised money was about two years ago at an $11 billion valuation. the valuation up a little bit more than $1 billion over the
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past two years. now that makes it valued at half of snap is valued and a spokesman said to the company plans to use this capital to invest in visual search technology and global expansion. specifically when it comes to computer vision with products like the lens, allows people to do bigger searches and this is one of the hot unicorns people watch for ipo in the next 12-18 months. back to you. >> used for recipes and other things. julia, thank you very much. amazon, meantime, announcing offering discounted prime memberships to those on government assistance. this summer, amazon begins accepting the supplement nutritional assistance program, known as snap or food stamps. the two companies have focused on opposing ends of the spectrum, but now are going after the same customers, especially online. >> talk about that. joining us, david strass, managing director at swan, and
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michael grahm, managing director and senior equity analyst, and, david, you think that what we see here is with this move by amazon, that walmart's making end roads against walmart online, right? >> definitely are. since they bought jet -- >> walmart did. >> walmart did, acquirining arod that platform, 63% growth in the first commerce on e-e-commerce sale, and in store, it's helping. traffic up ten, 12 quarters in a row. it seems to be working. >> but jet.com is not selling to people, you know, on the snap program, is it? >> no, but ultimately, a lot of walmart is selling to people on the snap program. >> right. >> it's a huge part of the business. interesting thing here is $6 a month, $5.99, it's more than kosco's membership a year. you get more for it, movies, video, all of that, but interesting to watch to see how that customer does and whether
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it goes to, you know, too amazon for that. >> michael, you tilt more towards amazon, do you? >> i'm a believer in amazon's long term growth. i think this is a, you know, the move to offer a lower price prime membership is just another part of amazon's strategy to roll out prime to as many households as possible. you know, i think from an e-commerce perspective, amazon has advantages over walmart. one is there's a vast, vast online audience, probably the second biggest online audience relative to google and maybe to facebook and the other thing that it has is a fulfillment network that's really laser tuned for e-commerce, areas where walmart has to catch up, and they are getting ground, but amazon has a big head start. >> yeah. david, interested that you are saying this suggests strength in walmart's part and perhaps competitive on amazon's part. i feel i read it completely differently, which is that amson
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knows it can afford to did after the customers, perhaps subsidize it, depending how much margin they give up, expand the rolls, and for walmart, force everyone else to somehow try to answer this? >> first of all, the world's bigger -- there's a lot of opportunity for both walmart and amazon still left in the world. you know, they are both moving to the forefront of e-commerce. like i said, they have been really interesting acquisitions, particularly walmart, by amazon has done it for years. the one thing walmart does, especially the lower end customer is with food, and there they are the largest seller by far of food. >>apples, unless amazon gets those people, how do they answer for it? >> answering for it by leading in price. walmart never gave up leading in price and will continue to try to do it. it's going to be a war, but there's a lot to get that share. >> michael, less than a minute
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to a videotape we'll show of the president meeting with congressional leaders of the white house and made an interesting comment about james comey's. we want to watch that as it rolls, but let me ask you, what about david's points about walmart making end roads into amazon's online business here? >> well, you know, the future of e-commerce is going to be more about mixing offline and online commerce than has been in the past. you're going to have consumers that want to shop online and pick up the product in a store. things of that nature. walmart does have a built of an advantage over amazon in that part of e-commerce because you have a network of many stores. amazon is experimenting with retail outlets, how this impacts the e-commerce business. i think overall amazon's going to grow quickly.
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i think they'll take a share of e-commerce. >> all right. i have to interrupt you. they are rolling the videotape. here's the president with congressional leaders at the white house. >> with the republican leadership, house and senate including speaker ryan, leader mcconnell, mccarthy, representatives, thank you, all, for being here. really appreciate it. in just a short time since the election, we have achieved truly incredible gains for the american people. we've already added more than 1 million new jobs. it's already going up fast and improved a historic increase in military spending. we have increased the stock market values and values of corporations on the public markets by $3-$4 trillion since november 8th. i've signed 36 bills into law. i've repealed one jobs breaking
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regulation after another. in fact, the house and senate have set a record number of resolutions eliminating regulations to my desk for signature, saving our economy many billions of dollars annually, and, in fact, based on the numbers we just got, the actual number is approximately $18 billion we've saved app newelly with all of the bills signed. that's a great job. together we fight for promised measures on the border and fought successfully. we have tough policies to keep deadly drugs and vicious gangs out of the country, and ms13 is being taken care of at a very, very rapid clip by general now secretary kelly, done an incredible job, really incredible job. and we're down reduction on people pouring through our border down 78% as of -- 78%,
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used to be 1% is a good deal, but down 78%. that's before we have the wall. the wall will be a great help. that'll happen it, believe me. my administration is also working with congress to rebuild our infrastructure. we'll be discussing that in great depth next week with gary cohen, steve mnuchin and mike pence and pass a massive tax cut which will be the biggest tax cut in the country's history. it'll be the biggest tax cut. it will stir business like never before. at the core of the agenda is focus of repealing and replacing the disaster i don't know as obamacare. average premiums have more than doubled from 2013 to 2017 including increase of 203% in alaska. wow. that's a new one.
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i always use arizona. at 116. i got stuck at 116. now we're at 203. that's pretty big, 123 in louisiana. these are the new numbers, folks. i think after a year, i'm talking about 116% in arizona you'll be happy to hear we have new numbers. and 176% in north carolina. insurance carriers flee, leaving many americans with just one insurer or no insurers to choose from. that's happening now in many states, and just this afternoon, we learned that the last statewide insurer in the great state of ohio is leaving. they don't have any insurers, meaning another 20 counties in the state of ohio have no health care plan. if congress does not act to save americans from this democrat
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inflicted catastrophe, next year is only going to get worse, going to get a lot worse. i don't know how it gets worse than 203%, but i'm sure the democrats will find a way. almost every major insurer has already pulled out for 2018. the house took an important first step to rescue americans from this calamity when passing the american health care act. that was a very, very long and difficult negotiation, but really gives a great print and great concept, and now the senate will follow suit and get a bill across the finish line this summer that gives great health care to americans, and i'm looking forward to seeing it, so looking forward to seeing it. we're working very hard on massive tax cuts and working very, very hard on health care,
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and i think we'll have a pleasant surprise for millions of people. i thank the leadership for being with us. mike pension, you've been great. i appreciate you being here, steve, great, i appreciate everyone, jared, jared's become much more famous than me. [ laughter ] if we work, we can get it done. thank you very much. thank you, everybody. thank you, all, very much. >> if you didn't hear, they asked about comey's testimony and wished him well was the last word there. >> yes. >> he pretty much laid out the agenda that has been on the plate since the beginning of the year, and we heard from the ceos of the business round table today who had highest level of optimism based on hopes for this
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very agenda. >> reporter: that's right, bill. making a statement explaining what he feels successes have been. he, among those, of course, the president talking about stock market value. now, the stock market's gone up since he's been president. he very much views that as one of the accomplishments of this white house so far this year. you also saw the president there taking that question at the end about james comey's testifying on thursday saying, i wish him luck, and the president making a comment to jared, his son-in-law, saying he's actually become much more famous than me, oblique reference to the russian scandal swirling in the white house. you got a big laugh from the republican members of congress in the room, but, of course, remember that comment from the president has become much more famous than me is also way the president said to james comey's earlier this year. we know that james comey was fired by the president. i don't know if you can read into that but that's not a phrase from the president when
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he says you're more famous than i am. >> i'm sure with his son-in-law that's not what he intended, but i don't know. >> reporter: sure, but harkens back to the moment for a lot of people. >> on the eve of the whole thing. >> right. >> there they are. going over the agenda. as you pointed out, you know, ticktock, ticktock, time before summer recess is before us here. >> yeah. >> and -- >> reporter: interesting situation, you could as one more point, see a situation where senate republicans decide they have to have a health care vote, promised it to the base, they have to do it, win or lose, put it on the floor and vote on it. you could see a situation where they put a bill on the floor they know might be defeated and allow the vote to happen anyway to clear the decks giving the opportunity of a vote. >> thank you very much.
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by the way, our executive producer yelled at me referring to this as videotape that we were showing of the president. i -- if it's not videotape, what is it? i don't understand? how can we show something that happened several minutes ago that's not videotaped. >> mention the kodak phone. >> i will later. we are off track and behind time here. market movers now, shall we, so they don't yell at me again, advance microdevices the best on the s&p today attributing the rise to high demand for the chip maker's graphics card that's used in crypto currency mining. others say the imac announcement could increase volume by 60%. macy's among the laggards on the s&p at the annual investors day meeting. the department store chain's chief financial officer said it
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could be blelow what was issued in february, could be below last year's margins. >> notable, so, too, as courtney mentioned, first time in four years for that meeting. >> four years. just trying to work the company in a hurry, big time. all right, 30 minutes left in the trading session here with the dow down 33 points. an analyst says cigna could shine brightly in the port folio. a contrary play coming up.
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welcome back. time for a cnbc news update with sue. >> hi, bill. this is what's happening this hour, everyone. french police shot and wounded a man who shouted, this is for syria, before attacking a policeman with a hammer outside the notre dame cathedral. it's being investigated as a terrorist attack. clips of the wounded suspect lying in the street were posted on social media. homeland security says the legal battle delaying implementation of president trump's self-proclaimed travel ban is harming american's security telling a senate committee the
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executive order has nothing to do with race other religion. update to a story we first brought you two years ago. prosecutors probing sales of an opioid drug says a manager trying to fraud insurers will plead guilty as part of the criminal case against six e-insys executives including the former ceo. and as the summer grilling season is underway, a kentucky based food distributor issued a recall for 22,000 pounds of ground beef due to possible e.coli contamination. it was shipped to indiana, kentucky, ohio, and tennessee. you're up to date. that's the news update. back downtown to you, kelly. >> sue, thank you. see you next hour. as we head into the close, and, by the way, we have moved down a little here, and there's a lot of tension on why the faang stocks are taking it on the chin. it's one of those afternoon. they are helping us drop here.
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the dow down 36. nasdaq down 18, more than a quarter percent, russell is positive, and we'll explain more next. less than two hours away from the start of tesla's shareholder meeting. coming up, a bull-bear debate on whether you should be one of the shareholders coming up.
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say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.
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welcome back. talking about the tough landscape for retailers, but i-iii up 73%, they rose their guidance for the full year. g-ii,'s ceo said they are cutting costs as they close and repurposes stores. investors sharing that move. meanwhile, a late day rally today after falling earlier in the session on news that the company's chief operating
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officer is resigning. stock down 42% this year, but the next guest still sees value in signet. the stock fell more than 20% since the last time she was on the program. if you liked it before, 20% higher, you'll love it now. she's back with us, you're a value investor, and you love contrary plays. >> yes. >> you have to be patient and wait. so -- >> yeah. >> you like signet at this point? >> i like it more. i don't have the opportunity recently to make it a full position, which would be encouraging news, but the stock came out with results, and the market was a little disappointed they didn't sell 100% of their credit on business, financing business, but they made steps to sell it, and, you know, they sold their prime book for a billion dollars, and that's begin them extra liquidity, and they can buy back a lot of shares with that, and so you're looking at a stock that trades in the 9% precash flow yield,
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one and a half times book, 20% hour a week, and i think that's comp compelling. >> like you said, if you liked it then, you -- it's a full position now. you mentioned l brands last time. >> we call the bottom that day. >> well dope, kelly. >> well, since we speak about retail, macy's as well, i mean, who do you think is well position the to navigate this today's environment? >> so, what's interesting about retail, you paint the whole sector with one brush, but what is macy's? a department store. it's about veeconvenience and selection. that's the internet. sales should go online. as we discussed before, i like things you have to try on, but i think macy's in the penalty box where it belongs. >> so here we had a discussion yesterday with the value invester about retail, and he's staying away from them, he's painting it with a single brush, but my question to him, and asking you, does that mean retailers are going out of
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business, you don't want to touch them here? >> i don't know they are going out of business. some are getting it right, best buy last week, extraordinary, right. >> the exception. you talk about macy's, but, sears, that's a special situation as well. that's almost like a real estate play, but there are plenty of them hit -- kohl's painted with the same brush. >> if you're a department store and you can cure rate an interesting selection, you'll do just fine. intermix is a great story, but, you know, retail by definition is about fashion, and you look at drexler's j. crew today, they are doing horrifically, and my cousin is a founder of this brand, doing exceptional, bigger than rag and bones issue and the brand's three years old. retail is fickle. >> yeah. and away from retail, where do you look and see value here? >> so i would spend time trump-proofing my portfolio.
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i find itunpredictable, and i like stocks -- basically, i think you can have stocks that are safe or popular, and they are rarely both, but it's -- even if markets are expensive, it's possible to find a cheap house in an expensive neighborhood, so when i think about that, i think about stocks, like -- >> okay, i have to ask about one of the great textbook publishers out there, but you mentioned that you like a company that, like, macy's, should go online. the textbooks, kids, college are going online. >> they have 40% market share of k-12 textbooks. that's not going online. >> really? >> really. yeah. they have a great new ceo. you know, he has a great tech background. that's an opportunity for him to really shine. >> and real quickly, what's the story on nvidia? >> mity.
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a story like your mother cleans up for you. they are listed in the u.k. there's a new management team. completely cleaned shop and the corporate culture has changed significantly. so the chairman's buying, ceo's buying, in the penalty box because they had accounting issues in three profit warnings sequentially, but there's a new management team coming in, cleaning decks, and that company do their investor days in the fortnight, and they are both management teams to watch. >> first time i heard fortnight in a while. we love having you on, barbara, thank you. >> well, thanks, bill and kelly. >> thanks for joining us. come back again sometime. 14 minutes left in the trading session here, dow down just 34 points right now. >> tesla shares up more than a whopping 65% this year. we're going to have a bull and bear squareoff to talk about how much more mileage tesla has left in it after this.
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>> guessing she doesn't own tesla. look, there's a supermodel. it's petra nemcova promoting happy hearts fund, a nonprofit charity helping children return to school after homes were destroyed by natural disasters. they have having a charity gala here tomorrow night in new york city, and, yes, some of the traders are suffering the attention of petra nemcova. we'll be right back.
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the mummy has returned. what the... [ eerie music ] [ guitar plays ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ]
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[ drum beats ] [ upbeat music ] she is real. the mummy. rated pg-13. as we mentioned, tesla is set to its annual shareholder meeting in 90 minutes, and focus intended to be on the company's m3 model, stock at an all-time high today. shares of the company up more than 65%, just this year. >> over 350 now. >> wow. >> joining us a jamie when consumer edge research, and brian johnson. did you raise the price target? >> thank you for having me. we did this morning. revisited, 385 now, 15 times on the 2020 estimate. >> and, brian, i guess you -- if you were to put a -- well, i
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don't know, do you have a price target? lower than it is now, huh? >> yeah. we have a price target of 165, now, we're not saying it can't go higher in the next few months, but we give it full credit for being a major auto maker in the 2020 and discount that back. >> so you're giving it full credit, discounting it back, and coming up with, what did you say? 165? >> yes. >> what do you think of that, jamie? >> i think, and i respect brian, and i know how it goes with tesla, you have to pick a side. it's hard to be equal weight or neutral on the name because neither one of us know how this unfolds over five to ten years, but i think what tesla gives you that no other auto manufacturer can right now, is it scratches the megatrends, the electric vehicle sort of power train revolution, it has an eye towards autonomous vehicle in the software and hardware resolution around that, and more
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than that, there's a fleet opportunity with respect to shared mobility, and tesla, presumably, playing a key role in the evolution of that business as well. >> well, brine, what do you think happens to the company in five to ten years? we hope they begin production of the model 3 in july, and start selling them by the end of the year. beyond that, what do you see happening here? >> well, to those points, we see other auto makers coming in with ebs that through suppliers like samsung and lg, they narrow the cost disadvantage to tesla, such that there are other scale economies to make up for that. that's difficult for tesla to have the margins it's forecasting. second, vis-a-vis mobility. there's a lot of companies we like mobileye in intel, and pryers, also waymo in autonomy, and the 2020s you're going to see autonomous vehicles in ride sharing fleets, so the advantage there really is to companies that i pointed to gm list, and
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where consumers can hail a robo taxi and use the same act when only a human taxi gets them there. >> you know, jamie, we spoke yesterday about whether insurance premiums are higher on insurance vehicles. if that's true moving to the model 3, is that another risk to the idea these will be attractive to the middle class? >> yeah, look, i think the algorithms around insurance are complicated by the fact that, you know, the model s has been available for sale for the last few years, and model 3 has not been even offered, you know, for public consumption yet, and so, you know, what i would say is on the other end of the curve and argument that i heard more frequently among investors we spoke with, just the data tesla gathers is in and of itself another big opportunity for the company, and their ability to transfer that data in a variety of ways, which could, in fact, include offering insurance on
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some level, i think is the bigger question around insurance over the much longer term, and so who knows better than tesla how their owners are utilizing their vehicles, and in it as well, what i found interesting with the insurance analysis, you know, what we know of evs there's fewer moving parts, tend to require less maintenance over time, perhaps, inflated by -- currently battery costs are high, but come down with scale. outside of that, ev should be cheaper to maintain over the longer horizon versus an internal combustion engine. >> all right. we have to go at this point, guys. tell you what, tesla's one of the water cooler discussions you could have all day. everybody loves to talk tesla. we wish we could go on, but we have to go. thank you, both, for joining us today. >> thank you. >> don't forget, tesla's shareholder meeting is coming up later. >> that's right. >> we'll have coverage of that. meantime, closing countdown in a
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moment. >> after the bell, president trump meeting with gop leadership this afternoon to get tax reform and the rest of the agenda back on track. looking at the obstacles he faces, as well as congress. you're watching cnbc, first in business, worldwide. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov
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with e*trade's powerful trading tools, right at your fingertips, you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com two and a half minutes left in the trading session. hello, bob. >> how are you, william? >> doing just peachy here. dow down 44 points.
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let's go over some of the interesting markets today. so, let's start with the ten-year yield, hitting the lowest level of the year, down to -- it was at 213 first time, came back a little, at 214 now. okay. >> things can't get -- near lows for the year, and citi group is an exception. >> but yet -- okay, so maybe expectations for low inflation there, but consider gold, which broke out to -- out of the downward trend, and now at the high for the year to 1296 right now. >> well, there's -- >> both ways here? >> but with the vix at ten, essentially, just broke ten today, hard to reconcile both of them. i agree. there's multiple -- >> the dow just showing that briefly, as it meanders down 40 points right now as we head into the close, but interesting thing, some traders were telling us late today they think they saw faang stocks that may have -- even as we talk about
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how these have become the nifty 50 we were obsessed with in the 1950s and 70s, now we hang our hats on five stocks. >> i think there's a good chance, if the stocks sell off, other parts of the markets will do better, as you said, using it as a source of funds. market that strong now. what's interesting is heavy volume in overseas etfs, particularly european and emerging markets. put up the bgk, this is the main euroteen etf. a monster throughout the year, new highs, and in the last day or two, it's slowly dripping down. there's huge volume in this today, these are momentum guys deciding to take profits right now, and what's been a very, very profitable trade, and that is europe this year. >> waiting for the call me testimony, waiting for the u.k. election. >> so the big questions with the market is, how much is really there on the testimony and we don't know. i think it could be a market mover potentially either way.
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if there's something potentially there, where the president instructed in some way, the market moves. >> 941 on the dow as we head to the close. by the way, see you tonight on the "nightly business report" on pbs. stay tuned for hour number two in the closing bell with kelly evidence va evans and company. see you tomorrow, kel. thank you, bill, welcome to the "closing bell," everyone, i'm kelly evans. all four major averages look like they are lower, dow dr dropping 45 points, dropping in the s&p 500, and 2429, a 24 point drop there. nasdaq dropping, big cap tech names look to spill into the close today, and russell in the green for much of the session went out with a drop of just about a point and a half to
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1394ment as you can see there, in large part, the bond markets caught the eyes too, treasury yield lowest since november around the election. a lot of moves to get to here in just a moment. meantime, shareholders of general motors rejecting david einhorn's proposal to divide into two classes. where is gm now? tesla at a new intra-day high as they gear up for the shareholder meeting tonight. will musk offer clues about the model 3? he gives us some bread crumbs, something new to talk about. he's good at that. joining me on the panel today, michael santoli, and michael clinetop is here, and dennis burman, financial editor at the "wall street journal," welcome, everybody. michael, seeing arthur cashin going by, any thoughts about the big caps in the closing? people might be nervous about
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thursday now. is that affecting the overall momentum of the market? what do you think of it? >> i don't know if people are nervous, but you are seeing clues in the market it's starting to tense up and very methodical gramg wall wdual way. they talk about the index above 10, saying that's low, but it's higher than it should be or warranted by how calm the market has been. shows you there's a little bit of anxiety, but, also, with energy up 1% and the faang stocks under pressure, it's taken from one pocket to put in the other. >> we could be back to the trade that started us off after trump was elected, but stepping back, the read on the market? >> this market right here, interesting, stock market volatility low, but currency volatility picks up. in fact, currency volatility, for the time, higher than stock market volatility. some policies like the u.k. election --
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>> being insanely high. i mean, maybe it's just it's in such small amounts, you see the british pound by 50%. >> usually a fraction on a daily basis, but it's picked up a little bit here, and, you know, we see in things like the mexican peso back from the trump tantrum, all the way back, trump up 22% this year, even markets are not showing any signs of slowing down here. it's a good sign for the global economy. >> you can't invest in emerging markets. you don't know. look at russia any of the places, one year up 23%, i have to be in that, and you get in that, and it's creamed, and should have been something else. >> we see a bunch of 20% rallies only to fizzle in years. that's over. i think it's the end of the under performance of the emerging markets. i look at the leading indicator for world trade. pointing to the best trade numbers in about ten years. in the next few mornths, great news for emerging stocks. >> at odds with the
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antiglobalization theme we've talked about. dennis, what do you think, a big day thursday, but then again, big days, lately, have not delivered in terms of major moves to the market. >> to me, the question is, kel, what's the economy telling us, and how do markets respond? there's a mixed picture. we've seen the numbers that the economic figures come out of the past few days, whether it's nonmanufacturing ism, whether it's pricing power in various sectors, right now, they are not showing the real traction that we thought we'd see when donald trump led a fire on the stock market. it's why we see the retrenchment in the bond market right now. we just cannot see right now, kelly, true economic traction in the way we were expecting. >> i guess. i mean, it's not horrible, either. >> it's not horrible. >> yeah, no, but that idea that, you know, it's goldly lo goldie hate that expression, but --
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>> from the '90s. >> started with the fable. >> is it -- >> it's good enough. you know. >> is it goldilocks enough, though, to make the feds say, well, we're going to raise two times in 2017? perhaps we'll hold back a little bit, which might be what the markets would prefer, one, certainly number two, perhaps, number three, but, right now, kelly, the numbers just aren't tracking to what the expectations were in that sort of very sweet december-january time period. at least for the stock market in particular. >> that is true. but i think the result is that those sectors that would be the big beneficiaries of that kind of an acceleration and that kind of fiscal help, whatever it is, are washed out. there was a purge. >> so true. >> none of that's priced in in a specific way right now, and that's the way the pendulum got to an extreme again. >> looking at this country, you are focusing internationally,
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and the weak dollar's help that, right, but, you know, what about u.s. stocks? >> u.s. stocks are interesting to us. they have actually disappointed relative to expectations whereas europe is actually done pretty well this year economically. that may be peaking out. certainly soft indicators look 57 on the pmi. not much better than that. >> talking about europe's? >> yeah, europe right now. >> really? plenty of people that's the big idea, go europe, go long, but you're saying maybe a lot of that's priced in? >> great when the pmi is bottoming, but now it's at a cyclical high. i don't think europe is going to crater. expectations have aligned, and one more sideways in terms of steady growth there. u.s. could see a rebound there. that's the more optimistic story. >> talking about bitcoin in a moment, michael, and some part because everybody else is, and i want to know whether you think it's a tulip, and whether investing in -- i don't know -- i don't want to use the word investing, but buying something because it hasscarcity, going
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up in price, and mark cuban had a appointment calling it a bubble today. >> growing interest in it for sure. in the short term, the shape of the chart by definition means there's tremendous speculative momentum to it. question is, you know what bubbles do, though? bubbles cause productive investment overtime in certain sectors. >> yes. >> ending up with the good stuff -- >> wait, they do cause? >> yes. >> the fiberoptic cable in the ground hornet for investors in ktk equity, but great for the society. >> interesting part. the thing about the tulip idea is there's tulips, not one bitcopy, but dozens of them. >> what about in theory, going from $8.52 to $250 on sunday, dennis, but what are you thinking about this? >> keep it in perspective. the total value of the bitcoin is 35-40 billion, the amount of u.s. currency in circulation in
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the trillions. really is a trifling sum. something is to be said about chinese assets in particular wanting some version of safety, some way to get yuan offshore, bitcoin, other occupations, legal possibilities, make that possible for people in china, but the fact that we are talking about bitcoin today, kelly, the fact that random people ask me about bitcoin means, one, be careful about bitcoin, buying it knowing it's speculative. you cannot pay taxes with builtcoin, you can pay your taxes otherwise. >> talk about money in dave and busters. numbers are out, dom? >> we have the shares of dave and bus ters, 28,000 shares worh of volume after the -- i guess we call it an adult arcade gaming facility, not gambling, but fun and gauges, comes out with earnings, beating the estimate of 81 cents a share.
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revenue better at 304 million versus an estimate of 299.8 million. comparable store sales a blemish up 2.2% for the quarter, and analysts on average looking for a 2.7% gain in the comparable store sales. pointing out from dave and busters on that side of the equation, they say they are boosting their financial outlook for fiscal 2017, and the board authorized repurchase of an additional 100 million of the common stock, but, again, investors are talking about a stock that's up 25% year to date, up about 70% over the past 12 months, so follow-up and games for a lot of investors, a nice ride, see if that continues up slightly now, a couple percent in the after hours, back to you. >> thank you. happy birthday, by the way. you can celebrate at dave and buster's. that's -- >> kelly -- >> hang on. getting to the -- josh, how did the gopro supplier do?
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>> they reported eps of 39 cents, versus expectations of 36 cents, revenue up 12% to 64.1 million. street expected 63.5 million. looks like gross margins clock in at 64.3%. turn that q2 guide, kelly, six times to 72 million. street looked for 72.3 million. the board authorizing a repurchase of up to an additional 50 million. on the call, they are talking about the core markets, enterprise security cameras, drones, you mentioned gopro, gopro is looking for another supplier for the new camera in the pipeline, and it starts at 4:30 eastern, excel kelly, back you. >> soon to be former gopro supplier, josh? >> you know, they used to be -- we used to use this as a tell here, kelly, they'd make up 20% of the revenue, but new camera,
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it is confirmed that gopro is switching to another supplier for hero 6 expected later this year. >> running that awful -- thank you, josh. >> dave and buster's is a small company, stock buy back is a small sum, but shows the point of the economy now. the fact that the dave and buster's board cannot find a better use for $100 million, despite relatively good performances in the quarter says where we are collectively, like, there's not enough investment to make things up, and extrapolate to the macro, it just doesn't add up right now for real economic growth in the way we perhaps want it to be. >> as michael knows, i read what henry singleton, lately, ten year when he bought 90% of the shares, but the interesting thing about doing that is it was when he saw they -- thought they were undervalued. >> yes. >> after the run they've been on -- >> that's no longer the game that boards are playing.
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boards kind of go in different places. i don't think it's an all or nothing play. >> when was the last time you were in the dave and buster's jeff? >> a decade, it's been a while. >> exactly. guys, thank you very much for joining us today. jeffrey, dennis, very much appreciate it. >> thanks. president trump meeting with congressional leaders at the white house just an hour ago, and now there's a big tax reform meeting scheduled on capitol hill this afternoon. will the white house be able to get the agenda back on track ahead of testimony by fired fbi director james comey thursday. that's coming up. auto a focus today, gm rejecting a proposal to split the stock, and tesla set to hold a shareholder meeting. what the resultings mean for both stocks and we want to hear from you. you can contact our show via twitter, facebook, or e-mail us
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welcome back, uber fired 20 people after a company investigation into harassment and discrimination claims, the firing on the badge of the company's hiring, the shell service of leadership and strategy is here with more and news of more. >> that's right. we are hearing that uber hired the former high profile head of consumer global marketing for apple music. she will be joining uber as chief brand officer in a statement from travis, he says, her creativity and deep understanding of consumers allows us to build the same love and appreciation for uber's brand as built for uber's service. again, guys, coming from apple music, another big hire by uber in the last few days. back to you. >> that explains it, because we saw that departure recently going to uber, thank you.
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interesting. i mean, there's so many moving pieces there, just waiting for travis to come back to deal with it. >> on a net basis, given all the hemorrhaging of the problems uber's had, this is a relief from a news front. >> yeah. general motors, meantime, shares lower after rejecting david einhorn's proposal to split the stock in two classes. phil lebeau is here. didn't seem like this had a chance, did it? >> it didn't. little chance. when you talk with invester groups, they were cautious about outright saying they were not going to vote for this, but made it clear they did not think this was the plan with merit. especially regarding the questions about how would you value the dividend stocks, one that tracks the dividend stocks, considered dead, how would it be considered, and at the end of the day, this just really had no traction. >> you know, do you think it's going to leave any kind of
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legacy, the fact that einhorn suggests this in terms of, you know, ford got rid of the chief executive, people looking for ways to help ailing share prices. it's so novel it's hard to imagine it would. >> i don't know if it has an immediate impact, in other words, do i think there's going to be another proposal any time soon? no. i was talking with brian johnson pr barclays here not too long ago appointmenting out people floated out the idea of a tracking stock for general motors, the growth potential part of it. i don't know if that's going to ever get traction either. one thing is clear. gm has to figure out a way to convey to investors that it can, not only monetize future products, autonomous drive vehicles, electric vehicles, mobility services, not only monetize those, but that it has a trajectory in terms of how much growth is expected from them. that's the key. because it's not enough just to say you have record profits
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because right now inest vers go, nice, so what. give me what you're doing in the future. >> so true. speaking of that, about an hour, tesla's shareholder, annual shareholder meeting kicks off. usually it's at 2:30 on a weekday, but what drama, if any, do you expect? >> well, there's always a couple good questions. that's the best part about the tesla annual meeting. you get a couple whacky questions, m mixed in with othe questions expected. muff is going to get a number of questions regarding model 3. production scheduled to start next month, first deliveries before the end of the year. give us more guidance in terms of how things are looking as they prepare for the launch of production and how they plan to education cproduction in the year. talk about the giga factory, solar roof installation, and a question about a future product. that's the fun. that's where he drops in a
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reference to a product. >> exactly. >> like, okay, that's something to talk about. >> i hope he talks about the boring company. this is not the place, but i'm very bullish on that. i want him to bore under the entire country and let us travel around in high speed tubes. that might be a few years off. >> sounds wonderful. >> phil, thank you very much. >> you bet. macy's shares lower after warning of shrinking profit margins, how the new ceo is trying to turn it around. first, why tweeting late at night or the lack thereof, could be the key in determining whether the warriors or cavs win the nba championship. our fast take when we come back. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures.
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welcome back. time now for today's fast take. first one-under-par, there are a record number of open jobs in this country. more than 6 million now. mike, that must mean a shortage of workers, right? >> you know -- >> shouldn't wages be going up? >> a shortage by definition. some evidence that companies are a little stubborn in terms of keeping qualifications a a certain level and wages and tolerating job openings and making due. i don't know that necessarily it means that it's an across the board lift to wages, but this is going the right direction. it's what you want to see, more power in theory in the camp of labor. >> a big number from this morning. next, another election catching our attention in europe.
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it's france's parliament elections sunday. could give the biggest majority since 1968, and the journal says today macron could have the most successful presidency, and the headline suggests he could be france's reagan. amazing how the tone changed surrounding this series of votes in france. months ago, thought it was going to be a breakup moment. but after he beat lepen, we wouldn't have influence, but now sentiment is turning the other way, and, you know, hopes in a europe that seems to be operating in a better pace. >> think a stronger france, better euro, yes, no? >> a lot of people argue the euro priced that in. >> we'll watch. wall street journal stopped showing articles to readers who clicked through on google.
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when they did they stop doing it, it led to a four fold increase in visitors becoming paid customers, mike, but a 44% plunge in traffic. google needs to play fair in ranking stories now. is this a smart game bet? >> you know, i don't know what playing fair means, right? google write, users hate it. i don't know there's principle at stake here the journal leans back on. >> i like it. maybe it's because i'm a paid subscriber, but it's smart, i think people know now you don't get stuff for free on the internet, and they should pay up. they should. >> from the journal's point of view, that subscriber is more valuele to you paying and sell that person's eyeballs to advertisers who know it's a paying customer. >> i hope that. >> opposed to submitting to the free bulk traffic. >> i hope you're right on that. finally today, basketball tweets as newsworthy as trump tweets.
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a study found a late night tweet leads to less points, accuracy dips. >> i guess the big guys need sleep. that's the last thing. i was chuckling at the story because the researchers say, you know, they are up late. >> okay. >> as if they are in the hotel room tweeting. you know. >> they define late overnight. >> yes. >> we broke it down, after 11:00 p.m., after midnight, after 2:00. what's the cutoff time? >> i think maybe that's the next study, but, also, you know, in the nba, it's well-known that guys go out on the road. i think there's talk that the home team tries to get the opponents to spent too much time on the town. >> up next, leaders hold a tax reform meeting shortly after speaking to president trump hat the white house. up next, discuss whether this
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week's testimony from fire ed comey hurts hope. a tech startup creating a wireless pill bottle so you never forget to take your medications. stay with us.
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welcome back, declines across the board, even for the russell slipping negative on the bell there. the big cap tech stocks slid into the close as well. the nasdaq wound up closing down 20 points, a third of 1%, slightly smaller declines to the s&p and dow. dow down 47 and s&p down six. a check on earnings. movers after hours, dave and buster's, love mentioning that, 2.5% on the earnings. comp store sales there, ambarella, soon to be former gopro supplier, down after hours as well. time for a news update. >> kelly, this is what's happening now, everyone. bill cosby's chief accuser began testifying at his sexual assault trial today telling jurors that the entertainer drugged and violated her at his suburban
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philadelphia home in 2004. andrea constand said she felt paralyzed and helpless as cosby assault her. killing seven people and injuring dozens of others in afghanistan, the blast took place near the main sunni mosque in the city. the death toll could rise. britain's prince charles and wife speaking to officers at the special operations room at london's metropolitan police. they met and thanked many of the first responders who responded to the recent london attack. later, they traveled to the royal london hospital where 12 victims of the attack are still recovering. and today marks the 73rd anniversary of d-day, a ceremony held at the world war ii memorial in the nation's capital. veterans placed wreaths at the atlantic arch in memory of those lost in the invasion of norma y normandy. that's the news update, kelly, see you tomorrow, back down to you. >> thank you, sue.
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anthem is making plans to leave the obamacare insurance market in ohio, and we have more on the story. >> anthem is pulling out of the obamacare, change next year citing uncertainty in, quote, an increasing lack of overall predict the when it comes to regulation. anthem is the only statewide insurer in the buckeye state. the move could leave more than 10,000 people in 18 counties with no insurer choice next year. more than a million members across 14 states, anthem is the sole insurer in kentucky, georgia, missouri, and nevada according to the robert wood johnson family foundation. more departure leaves big holes. they cite uncertainty for pulling out specifically whether the administration funds cost reduction subsidies for low income enrollees. they called this increasing lack
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of predictability unsustainable. they note those reasons are not specific to ohio, so we'll see what happens elsewhere. anthem shares, meantime, kelly, rising to a record high today. back to you. >> listen, if it's not a profitable business, you know, investors probably say that's the way to go. thank you. tough slide for customers, though. >> exactly. yeah. thank you. we're an hour away from a big capitol hill meeting on tax reform meantime. a lot of moving parts in washington. going to ylan in washington. can they get it done amid everything that's happening? >> reporter: certainly are going to try, kelly. the treasury secretary and gary cohen talk with top republicans about how to keep moving despite all the news and history that is tuck sucking up the air in washington. paul ryan and mitch mcconnell there as well as well as kevin brady and senator hatch.
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republican leaders were at the white house earlier this afternoon as president trump tried to show that his administration is making progress on its legislative agenda, and the president talked about tax reform. >> we'll be discussing that in great depth next week with gary cohen and steven mnuchin and make pence to work on it and pass a massive tax cut, the biggest in the country's history. it'll be the biggest tax cut in the country's history. it will spur business like never before. >> reporter: remember, congressional rules prevent congress from moving on tax reform until health care is done. on top of that, the white house is warning lawmakers that they need to raise the debt ceiling before the august recess. the house has 30 working days left. the senate with 33. kelly, that's not a lot of time. back over to you. >> yeah. that's the concern. ylan, thank you very much. is the trump agenda getting back
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on track? can it? will it? should it? joining us now, evercorp. isi, and welcome to you both. terry, listen, what's your best take on how this summer's going to play out? what's the priority? you know, what do you think can reasonably get done? >> well, i think there's room for a lot of positive movement here. on balance, we remain moderately bullish on what is about to happen. understo fundamentally they are working on the affordable care act in the senate by the end of the june with the idea to finalize whatever east going to happen before the august recess to then turn to tax reform, and as ylan says, capture a lot of the savings from that. at this point, i don't bet against mcconnell with the ability to get that sort of thing done, but, you know, it's
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a moment of truth for republicans. they've got to get around one solution on aca, and they have to get around a consensus solution on tax reform in order to move the agenda. >> and as you pointed out, they've also got other items on the agenda like spending bills, the budget, the debt ceiling. that make it harder to get their main priorities done? >> yeah. i mean, those are all four very difficult problems, the health care bill dogged republicans for the entirety of the administration, and you have to get then spending bills dealt with so we don't shut the government done october 30th, and increase the debt ceiling which i think treasury secretary mnuchin did a great job advancing earlier than expected, good news for investor, and finally, pass the fiscal year 2018 budget because other no support for a tax reform given the 36% approval rating of donald trump, the fbi and russia
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investigations and other incidents trump tweets about daily. so the odds are definitely stacked against them right now. i think that we've gone through spring cleaning with a lot of summer cleaning to do, the goal for the republicans, i think, will be to come back and start with a clean slate on october 1st. investors should just watch progress on those four items as we go through the next two months, but assume we're not going to have major progress on taxes. >> michael, you appointmented out, the -- the backing off the idea this is not happening in the near term anyway. >> not in 2017 earnings estimates or even 2018 is too distant to say that it's been built into expectations. i do think it's worth wondering, though, and that seems like something down the road that
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could be another pull, but i wonder, though, maybe they can talk about this, we talk about getting, you know, the aca vote perhaps out of the way and get a budget in there, but what shape does it take. pointing in that direction. so what you're talking about is corporate tax rate in the low 20s, talking about simplification of the individual rates along the lines that steven talked about about a month ago, and that's pretty much what you're talking about. the idea that there's going to be some sort of fundamental overall in the tax code, white house republicans proposed, good
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idea, as that may be. >> way are you listening for on thursday with comey's testimony, most important he says or do you want say? >> you know, i think, kelly, that the most important thing that needs to be understood that comey is not the director of the facebook, not even the former director of the comey. he's a witness. he's already discussed what's going on, his own views, his own story with the special counsel, former fbi director m urgs. i caution strongly against people thinking that what's going to happen here is some kind of big game of got-ya. i bet his testimony is more guarded than most people think. >> all right. live coverage of the hearing thursday. maybe bitcoin is not the only frenzy of the day.
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thank you very much. >> thank you. today's also the new macy's ceos coming out party speaking about details about the company's future. what's on tap next. we have the smart phone, smart television, smart homes, we need smart pills. coming up, a look at technology that transforms the medical transportation business. ♪ ♪ welcome to holiday inn! ♪ ♪
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welcome back, macy's stock tumbling after the ceo meets in new york city today, closing down 8%. courtney reagan has more. sure that was not what the company hoped for. >> exactly right, kelly. lowered the growth margin guidance, and the stock continued to fall throughout the session after that. down more than 8% at the close. even though macy's still reiterated sales and profit forecast, focus on the margin. ma macy's first meeting in four years, ten weeks into the job as chief executive. we went into more detail on the north star strategy. return macy's to sales growth. the department store is changing its marketing messages, simplifying pricing, but staying promotional, leading into its own brands and brand exclusives, and changing merchandise. they cutting down on duplication and leaning towards fashion, which is also part of the strategy to fight against amazon. >> there's a place for both
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amazon and macy's to succeed with customers as they develop competency in apparel, we'll stay ahead with fashion. what we outline in terms of where we go with exclusivity and products and working with brands who really do want us to win, i think that is our competitive edge. >> and the interplay between digital and the stores, of course, key for macy's and amazon doesn't have the stores, but it's rare for a retail ceo to even say amazon by name. overall, analysts seem to like macy's ideas, but uncertain whether it's going to drive sales and profit margin, especially in the short run. macy's can only control so much, and we know that retailers are troubled right now. kelly? >> yeah. courtney, stay there. michael, maybe i misspoke when i said they didn't want the share price to drop right now. maybe they do. >> yeah. >> there's the idea when a a new ceo comes in, you know, kitchen sink it. clear the decks. get all the bad news out and then it's easier to ride the relief. >> yeah. i'd say that there's an element of that for sure, maybe to keep expectations at a modest level.
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i think the problem, though, the market looks at macy's at similar companies and said they're not sure there's a right answer. not saying there's a wrong answer, but they don't know what the right one is. in the top line, the companies are not built to make great profit. >> i love the idea they say, well, we'll go exclusive, bet on brands, we saw this, but who goes exclusive to may cy's when that means you can't go on amazon? >> yeah. well, you know what, that is very interesting, and a lot of the brands are going to have to make some decisions. so macy's does actually lead in the number of categories. we also know they gained a really nice foothold online, and we know that amazon is trying to get a little stronger in the area of apparel, so brands come down and maybe choice at some point these companies may force them to choose either stay with us at macy's or sell on amazon. we know amazon takes over when it comes to pricing pressures, and there's levers pull that not all vendors of brands really
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like. some decisions are going to be made, and that's a tough call. if you're a brand, you want to go where the shoppers are. if the shoppers are amazon, do you go there and seize control of the pricing and distribution? i mean, there's a lot here to swallow if you're a brand. >> do the trader joe's totally private label thing. >> exactly. >> can do that too. >> exactly how they increased margins, and a lot of shoppers are not aware that inc, for example, hotel collection, charter club, those actually are macy's private label brands. they know they can get them there, but they don't realize they can't get them elsewhere until they try to price compare, and then when they realize they can't. >> all the square footage in the stores. >> exactly. >> courtney, thank you very much. >> thank you, kelly. >> courteney reagan. next up, wifi and pills, two items that don't really belong together, but a startup company is looking to change that and help parties use the internet to take their medication. a new kind of magic pill bottle
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is next. tonight on "fast money" brace yourselves for one strategist's contrary call on the year's most beaten down sectors. larry mcdonald makes his case at the top of the hour. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest
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one startup helps patients stay on top of their meds by offering a high-tech solution. we have a closer look at the smart pill bottle. hey. >> hey, there, kelly. that's right. for doctors and pharmacies k prescribing anding prescriptions is half the battle. new york city based startup is helping them to go beyond the pill. take a look. >> one of the biggest challenges for health care providers today is getting patients to actually
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take their medication. adhere tech is changing that. >> we have smart pill bottles that track adherence in realtime. >> they are loaded with state of the art technology to tell when patients take the medication with patients take the medication, with sensors that measure the open and close of the bottle and additional sensors that measure the contents. if a dose is missed, the bottles light up in time to remind patients to take their pills. the technology can prompt reminder phone calls, text messages or activate doctor's intervention. but you don't have to be tech savvy to use them. >> the average user is 70 and a third don't even own cell phones. >> reporter: partners with pharma companies, pharma fees provide smart bottles for free, distributed to the pharmacies across the globe. >> it puts them on a schedule. so patient versus changed their behavior in response to having
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the bottle. >> reporter: to date they raised $2.4 million and for thousands of bottles on the market in four continent, streaming data back to providers if real time. and they are planning an expansion here in the u.s. and the startup says it's already profiting and tomorrow, we're taking the iconic tour right here to new york city in the big apple. we have a fantastic lineup of speakers. so much more. we have a live stream at cnbc.com/iconic live. back over to you. >> i hope my grandfather is watching. i want to know if you will use the pill bottle. can you really, you got to charge it every six months. >> it's like a practical
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seclusion obviously it wouldn't be universally accepted. to me, it's a benign and helpful technology. it reminds me of the annoying hotel mini bar thing. >> but i like the ones that make a noise, because sometimes you open the door and something is jostled. then they want to charge you $7 for cashews. >> kate, i don't know if it can solve that problem, too. >> reporter: i don't know about that one, kelly. they did say they were using it with hiv patients in a clinical trial that were at risk for not taking their medication already and they did see improved appearances. it's impressive and a unique solution for sure. >> how much sit, kate? >> reporter: it's actually free for patients. they never pay for it. the company part iners with pharmaceutical companies and trials and hospitals. >> if it's free for patients. that's good enough. thank you very much. run with of the nba's greatest
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on the court has become a ledgend off the court, too, hoop star turned businessman magic johnson spoke about his take on the trump presidency and the economy, we'll tell you all about it after this. no splashing! wait, so you got rid of verizon, just like that? uh huh. i switched to t-mobile, kept my phone everything on it oh, they even paid it off! wow! yeah, it's nice that every bad decision doesn't have to be permanent! now you can ditch verizon but keep your phone. we'll even pay it off when you switch to t-mobile. ♪ to err is human. to anticipate is lexus. experience the lexus rx with advanced safety standard. experience amazing.
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>> there year's nba finals have been exciting to watch? at least the warriors fans, they're the most watched until the '90s, magic johnson says he is now going to run the l.a. lakers, he is paying to what's happening in washington. we know the washington moves by the wizards. we sat down to get his take on the season and oh so much more. jane. >> reporter: yeah, it's just a lot. because he does so many things. we talked business. we talked basketball. we talked about racial tensions in america and we talked about the president. now magic and his former coach pat reilly last night met with card members from american express at a special event. both men say, don't call the warriors cavs, the lakers the celtics yet. each team has only one once. stay tuned, he is hoping to
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partner in more business. if an infrastructure bill gets through congress and one of the most popular buildings in america, i asked him, what he gets from the currents president? >> he will have to find a way to work with everybody, latinos, african-americans, caucasians, everybody. you can't be a president just for the wealthy, you get to be it for everybody. and you try to redo everything, you redo obamacare, redo climate change, redo this, redo that. you know, you promised us jobs. focus in on that. >> reporter: the entire interview right now on cnbc.com, including one of lebron james. kelly. >> oh. all right. and is he rootee owe did he say he is rooting for one team or the other or who he thinks who might win? >> reporter: he thinks the warriors might win.
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when i asked him, are they the best team ever? he said not yet. this is a man with five rings, we tenth went to the finals five times in nine years. he says nobody can beat them. don't call them the great e.. lebron right now with so much of his career ahead ofle, he's one of the top five players of all time. >> you know, mike, it's good to be reminded what imageic johnson did. we talked about how many finals he has and rngs he has, how great -- >> i mean, a true dynasty, he is absolutely right. no two teams ever met three times in a row. >> right. >> in the finals, so that's a distinguishing factor. i'm also fought surprised imageic is a western conference guy. being that he can think the warriors were by far the better team is great. >> i can't wait for tomorrow night's game. jamie, thank you very much. much more online, our jane wells sat down with imageic johnson. speaking of magic, let's talk a little about the news that has been leading us, until today. we had the 16 into the close
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with big cap tech names. we were talking about amazon, if irs to close the thousand dollar mark. am that bet got there monday. yesterday on the close, did a little math. it required multiplying by 7. i found out by using google apple would have closed today at 1,081.15. >> absolutely. >> it's not going to get the headlines. nobody knows. >> it will have to settle for being the best company in the world. it's fascinating to that decision to split the shares seven for one. the stock peaked pre-split $700 in late 2012. that was kind of the steve jobs' peak. right, basically, it was his product psych that got the stock in, all the excitesment. the take was that tim cook didn't want that $700 thing hanging over his head, chopped it down so the all time high would be $100 and it also got it eligible to be the best drivers, which it did. >> i don't think we have time to talk about the silver blast
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thing. when is that going? >> let's talk about it. s&p. i probably next week. >> okay. i want everyone to watch that and watch what he says about where the s&p was and berkshire hathaway what he started 40 years ago. that's a big tease for you. in any case, michael, thank you very much. >> that does it for us on "closing bell." "fast money" begins right now. >> "fast money" starts right now! luveng from the nasdaq market overlooking new york city's times a square. kim seymour, karen finerman and guy adami. tonight on "fast" shareholder meeting moments away, we will bring you more must haves on the break and morgan stanley analyst adam jonas has an interesting call. who might be the winner? it's not tesla. plus, safety trades are surging as bonds and golds continue to drive t. strategist says fear not, stocks are still a buy. we'll tell him what has him so

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