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tv   Squawk Alley  CNBC  October 24, 2017 11:00am-12:00pm EDT

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and by a considerable margin the sector is being dragged down by shares of bio gen other laggers include eli lilly, the health care sector overall up 1% this month and 20% so far this year. that does it for "squawk on the street." let's send it down to the start of "squawk alley." back over to you >> dom, thank you very much. good morning, it is 8:00 a.m. at facebook headquarters on menlo park, 11:00 a.m. on wall street, and "squawk alley" is live >> good tuesday morning, welcome to "squawk alley." i'm carl quintanilla with sara
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eisen, john fortt at post 9 of the new york stock exchange. some outsized gains for the dow this morning on the back of 3m and kacaterpillar as earnings season kicks into high gear. it's the industrials taking us higher for that we turn to bob pisani on the floor bob? >> you want to know what a reflags trade looks like, you can see it today the earnings are in the industrials space and that's part of the reflation trade. this is what we've been talking about, global economy expanding, something caterpillar was emphasizing here i want to just show you something, because only half the dow stocks are up, believe it or not, only half the dow stocks are on the upside. the dow is up 0.8% and the s&p is essentially up 0.2% that's a huge percentage difference and that's because a couple of companies as you heard from carl, are making the difference in the dow jones industrial average some of the big names raising guidance, 3m look at that, up 14 points there. caterpillar, put that together,
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you've got 21 points there for -- to move the markets overall. united technologies, even though raised guidance is on the flat side it's an unusual amount of guidance raised today. caterpillar is extraordinary it's rare to see a company raise guidance 25% for the second half of the year. that just doesn't happen, folks. many companies do raise guidance 1%, 2% you saw that happen today with united tech, 3m, stanley black and decker, and lily that helps, but 25%, that's a really eye popping number, indicates what's going on. they were talking about better sales in china the u.s. markets were doing better in oil and natural gas. believe it or not, the mining business is even starting to pick up for caterpillar. elsewhere we have been emphasizing the storms hurting oil and gas companies, but a lot of companies are saying business is going to improve very quickly. think cabinets and plumbing around the united states, they
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were a bit disappointing on the guidance overall, but people didn't care that much. the company kept emphasizing this, this is a historic high for masco. similar for stanley black and decker the numbers were amazing for them in fact, the tool division grew 9% overall here. they also had good numbers that also an historic high for stanley black and decker this is what i mean, the economy right now in the u.s. still improving, global growth happening pushing companies like caterpillar and 3m forward dow sitting shy of the highs there. back to you. >> question what you said about the u.s. economy improving feels like, again, we're in this period where it's a tale of multiple economies and multiple sectors. yes, it's great to see the industrial movers, the construction, heavy equipment makers reporting good numbers out of the u.s., but, you know, if you follow some of these consumer staples that i've been looking at, p&g, unilever,
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kimber kimberly clarke, not exactly a picture of strength on the u.s. consumer it's interesting to see it in different sectors manifest different ways >> remember, there is an attack on food brands in general going on and amazon is leading that charge, so i agree sales have been disappointing, but there's a big macro picture that's happening there. i don't think it's necessarily because the u.s. consumer isn't out buying products. they are buying plenty of products, just the brand products are a bit under attack and those have higher margins than the individual store names. >> i think that's definitely part of it i think if the u.s. economy was doing so well, i don't know, toothpaste sales and toilet paper sales would be doing better, but your point is taken, bob, thank you >> pointed out that cat, for example, is a big emerging markets play >> true. >> doesn't have to be necessarily u.s. growth that's moving we talked this morning about mcdonald's, you know, a lot of the strength is coming domestically >> yes, 4% comps out of the
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u.s., 6% globally. so it is a u.s. story, as well it's just, you know, in different parts you're really seeing it shine. and i think if you paid attention as mike santoli said to the manufacturing numbers in the u.s., that would have told you the earnings would look good >> not fangs day, or at least taking a back seat, john >> today it is amazon, alibaba, oracle all up better than about 1% apple hanging in there up about half a percent, but these are names, especially alibaba, certainly not dependent on the u.s. consumer. certainly, global plays. oracle trying to push its cloud globally across the entire cloud portfolio applicationswise they are not in this segment of earnings season, they are a bit offcycle, but certainly one of the names that investors are excited about this morning >> thursday is the big evening for google, amazon, intel, microsoft, expedia, and that's got to be fun. >> it's worth mentioning we have
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an ecb meeting this week, first look at the third quarter gdp friday yields rising, that's propelled financials to the top of the s&p right now. the dollar has started to pick up steam, so you are getting this sort of stronger u.s. growth trade, despite some of the noise in washington over the back and forths on tax reform, you are getting a picture of strength today in these markets. >> let's talk more tech this morning, another executive departure at amazon's content division for that, julia boorstin at hq today. julia? >> it's been a few days since roy price was fired after a suspension because of sexual harassment allegations now one of his key deputies, joe lewis, is resigning amid reports he was the subject of an internal investigation into his treatment of women and reports of potential conflict of interest his actress girlfriend was cast as a series regular on an amazon comedy series. lewis is responsible for developing amazon's two most critically acclaimed shows,
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"transparent" and mozart in the jungle," his job expanding last year to include drama, as well no word on amazon and lewis' departure, but the company tells us it's pricing a producing role with lewis and someone else is taking on his role this latest departure raises more questions about what's next for amazon's content business. after last week, amazon's head of internal national productions announced his departure to work on apple's new original content business and there are questions whether more executives will leave in the wake of roy price's departure. even before, there was talk of jeff bezos wanting to change the company's content strategy it recently cancelled two dramas this as it looks for bigger shows with broader appeal. carl >> julia, question for you joe lewis, it's not clear from what amazon's done here whether
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they found there was a conflict. it seems strange if they are negotiating a producing deal with him at the same time that he's leaving is there any clarity around what happened there >> nope, no clarity. i sent several follow-up e-mails and all they could tell me is they are negotiating a producing deal with him. certainly, if the company had found something that, you know, would make them not want to work with him at all it would be unusual to do a producing deal, but some companies have terms in their contracts where if someone even if fired or pushed out, they get to have a producing deal to maintain their relationship with the company and create some sort of job for them it's really unclear exactly what happened here, but there are various reports of different kinds of situations. including the conflict of interest certainly does not look good >> julia, thanks for that. we'll talk to you later on our julia boorstin on the e-commerce side.
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amazon share of u.s. e-commerce is set to surpass 40% of the market by the end of this year for more on this let's bring in kate mitchell, joining us here at post 9 is "new york times" business columnist kevin roost good to see you both look at the top ten companies ranked by e-commerce, amazon 435, 42 is 6% at ebay. one big player having the lion's share of this pie. >> and that's the story with amazon in e-commerce for a long period of time and they are going to be growing faster than ebay by a good margin. what's interesting is if you are amazon, you look at that number and you're thrilled and are more thrilled when you look at overall commerce you're 3% of overall retail, which says one of the stories here to earlier comments about sector performance, retail may not be doing well overall, amazon, a,
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is performing well, and, b has so much head room in terms of what more can be purchased on amazon i think we'll probably expect them to get even bigger. >> so, kevin, who -- i mean, has good second mover advantage here can start to eat away at that differential >> i think some of what they have been doing with jet has been promising i've certainly seen more jet boxes showing up in my apartment building's lobby recently and there are companies doing this for individual segment like chewie or blue apron for food delivery, but really i think the fly wheel is working for amazon. they are getting more prime subscribers, those subscribers tend to buyway more goods than nonprime subscribers i think this is all working exactly as they intend and raises real questions about market concentration >> kate, in a way do these numbers understate amazon's advantage? my sense as a consumer is the amazon customer tends to be a frequent customer, as well
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whereas might try jet or buy something from ebay, but you're not necessarily every week or every month going to those places how valuable is the habit here in these numbers >> well, you've got prime membership number one and the habits of prime members are well documented they buy a lot more than others and the prime memberships have been growing and i can speak to my own household now that i can talk to alexa and build my shopping list and order while i'm still stirring my pot of soup makes it a heck of a lot more attractive and easy and fit right in my life so i think they are deploying techniques that put them in a place that no one else can so i think the elephant is going to get bigger. i do think walmart, by the way their growth rate is double that, projected growth rate, is double of amazon's amazon is about 30% and walmart is closer to 50, but it's like starting a marathon when the guy ahead of you is in the 20th mile and you're just starting out,
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but they are incredible challenger and if anybody has the resources, they do >> off a much lower base, to your point who's got the luxury market? none of these companies represented are selling luxury and e-commerce except for apple maybe, which is number four. >> apple has luxury electronics wrapped up there are other companies, stitchfix, other -- >> smaller >> smaller retail companies that may dominate that market, but it's hard to compete with amazon, and i was seeing the other day there was some tweets by carl's junior, the fast food company. did you see these? >> so good >> carl's junior is begging for amazon to buy it, ten, 12, 14 tweets saying, please, amazon buy us, we're a great company, and when you have companies literally begging to be acquired, it raises the question of what everyone else is supposed to do >> i did not see that. >> switching gears to facebook this morning testing the idea of splitting
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its news feed into two, separating personal posts from commercial posts it's being tested in six countries and europe and asia. the goal of the test is to understand if people prefer to have separate places for personal and public content. adding there is no current plan to roll this out beyond those test countries what is the upside for something like that? >> facebook's primary instinct is to keep people happy on facebook and using facebook, and, certainly, news is not always happy and so probably by separating news into its own portion of the feed, news from pages, that is, maybe they are hoping that other feed, the main feed, will be posts from your friends, family, pictures of dog s and babies >> more of an instagram feel >> yeah, which people coincidentally like a lot more than facebook. >> kate, i wonder, does facebook have any real values when it
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comes to content they seem to prioritize everything based on, as kevin was saying, keeping the viewer, the user, engaged, but i wonder as they try to work with media companies, they change strategies so often, can anybody trust them >> that's an excellent point it's interesting, i ascribe slightly different motives to this change. number one, it's a logical shift away from customized news feeds, nonpromoted content that really gave rise to a lot of the worldwide issues around election coverage and some of the tainted news media, so i think it's a subtle way perhaps to answer that question. i think the other thing is this user engagement translates directly into media. the fact that promoted tweets from folks like "new york times," other people selling things, are going to be more prominent, maybe covering some of those topics that may be covered by buzz feed and "huffington post." so i agree with you, if i've
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been "huffington post," buzzfeed, business insider, i use social media as my way of communicating and growing my user base and the attachment of their customers, so it will be interesting to see how people feel, a, both users, and, b, i agree with you people get a little frustrated when the rules of the game keep changing as you're continuing to try to execute around where you thought you had alignment with facebook's goals >> what does it mean for the advertisers, kevin is there any indication this is affecting advertising spending and targeting on facebook? i know we'll get earnings early next week. they've been quiet >> they've been pretty quiet my hunch is this controversy over russia will improve the advertising business for the 2018 campaigns if you're a campaign director and looking and seeing reports that, you know, russia may have influenced the election with $100,000 spend, i think you're
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saying, well, i can do a lot more than that and if these tools work so well, maybe i should be using them in some of the same ways. there's a really important thing here, which is facebook's relationship to publishers has been a source of great tension and in some ways this is a slap in the face to them. facebook has spent years telling publishers spend money buying likes to your page, increasing the size of your audience and we'll reward you with increased reach on facebook. now they are essentially saying you paid for the likes, now you have to pay us again if you want people to see your content >> certainly, your bosses have had things to say about the relationship between publishers and facebook, but it's getting really interesting we'll see if this test goes anywhere close to this country good to have you, thank you. kevin roost, kate mitchell when we come back, new warning signs for the iphone x steve is going to weigh in next. then we'll hear from bank of america's head of digital banking on the future. later on, exclusive with the
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jenner family matriarch kris jenner when "squawk alley" returns.
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ask. apple may have suffered a setback, at least when it comes to supplying the newest iphone according to the nikkei, initial shipments of the x are expected to be around 20 million units, only half the amount expected for this year. preorders for the x begin friday
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and ubs, on the other hand, says demand is at multiyear highs for more, let's bring in steve millinovich on the cnbc newsline got the report out of nikkei and then the research note that you write saying survey results encouraging. which one is it? >> yeah, sara, it's probably both demand and production are two different issues on the demand side, the research survey shows that 19% of people are saying that they are going to buy a smartphone in the next 90 days, which is the highest since 2014 and of those, 69% are saying an iphone, which is also the highest since we entered the iphone 6 cycle three years ago, so demand, we think, for the new iphones is generally strong and specifically 43% said they are planning on buying the iphone x, which, of course, is the most expensive model. i think the demand is very strong production, on the other hand, i think is lagging i think a 50% cut on the 8 is unlikely i don't think it's that big a
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cut, but certainly our survey work does suggest the 8 is not off to the normal start you see in september from a new model. >> yeah, talk a little bit about these technical issues, specifically on face a authentication, that's what the nikkei described how big of a deal is it and what's it do to pushing sales forwards and backups >> i think if it's a couple months it's not a huge deal. we do think the company is now ramping pretty quickly on iphone x production obviously, the facial recognition needs to work. that's a pretty critical assumption since they are going away from the touch, so it needs to work. if it's merely a case of a month or two delay in availability, i don't think most customers are going to switch to android, certainly. could they decide to go for an iphone 8 instead of a x, i guess that's possible, but essentially our call is the 8's demand is weaker than you'd see for a new phone, but seems to be because people are waiting for the x our survey work is u.s. only, a critical question is what happens in china we hope to get some more data
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points on that shortly, but we need to see china rebound for apple over the next 12 months. >> okay, steve, here's what doesn't make sense to me you say demand for the x is pretty darn high, which should be good news for apple, but supply is supposed to be low because of production issues and yet apple is launching this in 55 countries and they've put out a release this morning saying it's going to be available in store for consumers, so get there early. if they are that supply constrained, why would they have units in the store and scale back, i guess, preorder availability in order to do that, create lines, create demand for a product they don't have in stock? something about that doesn't make sense >> well, that's a good question. suggests maybe the supply situation isn't as bad as some of these reports suggest remember over the summer there were a lot of discussions of problems and yet apple came out and guided earnings and revenue pretty strongly for the september quarter and didn't appear at that point there were likely to be huge supply issues.
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certainly not with the 8, so we'll have to see what happens here, but you're right it appears that there's probably some issues, but in general my asian colleagues think they are being a little bit overdone. >> steve, your colleagues over at bernstein, your rivals, i guess, they look at asps the fiscal '18 consensus, they say every $10 increase impacts eps by 14 cents. even if they don't leave the ecosystem, trading down to the 8 could be material, could it not at scale >> well, it could be, but i would say in general the asps are likely to be higher rather than lower number one, because we do think you're going to see a lot of interest in the x, and, second, within the 8 line we're finding that more people are buying the plus than are buying the base model. so there is that movement towards bigger screens and that's different than the past even last year the iphone 7 plus was maybe 35% or so of demand and the base model is still outselling it. the 8 may not be selling
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terrifically well and the 10 is not available, you know, there could be some shift downward, but people seem to be going for the plus model also note apple is taking away the 7 model for the 256 gigabyte, so it's kind of forcing people up from the 7 to the 8 if they want to have more storage. in general i think asps will be strong >> steve, it's sort of an unconventional apple launch, the fact we have the announcement of the three phones and it's been a little confusing for investors the stock has underperformed in the last, i don't know, two, three months, versus the dow where are you on whether it matters that the demand for 8 is less because people might be saving up for the 10 that seems to be a big debate and sort of a confusion. >> yeah, so our view is that the primary reason the 8 is weak is because of interest in the 10, you know, if you expect the 10 to be at least, say, 35% of shipments over the next year, you would expect the 8 is down by a third the fact there are shorter lines and so forth is to be expected
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the critical question is, is it because the demand for the x is out there? we think it is apple should have earnings momentum for the next two to four quarters and that suggests to me you still want to be in the stock. the stock was up almost 40% before the announcement. given there's a lot of negative speculation out there and we haven't yet seen the x ship is surprising the stock has held in well given the headlines that we've seen. >> finally, steve, steve wozniak talked to deirdre bosa this week and talked about the evolution of smartphones overall "they reached a forum that's about right, smartphones reached a forum that fits all sorts of hands, all sizes of hands. i wonder if you think we've sort of done that plateau on the evolution of the phone >> yeah, to some degree it's becoming clearly a more mature product. i think augmented reality is the next leg of opportunity for smartphones in terms of keeping people upgrading, but i think apple is beginning to move on to
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the next generation, which could be wearables we're seeing new life in the watch and the air pods are doing quite well, may fit in, as well. i think there's still more to be done with the watch, particularly in terms of health care over time so it becomes more of a must have than got to have >> steve, we'll leave it there thank you for weighing in on the apple call, stock is up about half a percent right now still to come, why the head of bank of america's digital banking division says passwords and social security numbers are going the way of the dodo. a live report from the money 2020 cfencinaseg i nexte l vass
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and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. market's awfully close to session highs here dow is up 191. about 150 points of that, though, is just cat and 3m
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>> meanwhile, digital payments and mobile security front and center at the money 2020 conference in las vegas. that's where we find our deirdre bosa hey, deirdre >> john, no surprise that security is front and center one of the major themes this year and from banks to payment companies there's a consensus passwords just aren't secure enough anymore visa telling us the iphone x could bring facial identification into the mainstream bank of america just yesterday announcing it would be adding another layer of security to its online banking that would be two-factor fingerprint and face identification here's what the bank's head of digital, michelle moore, said what they are thinking about security when more and more people are switching to mobile banking. >> we've tested a number of biometric options for our customers, so touch i.d. you have on your phone today we've tested iris scanning over the summer you can use your voice with
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erica, you have face i.d. that's coming to market the entire premise of all of that is to make sure that it is easy and safe for customers to do banking and that we know who you are, because the days of passwords and nine-digit social security numbers to say you are who you are are going away >> now, another theme is the growing role of big tech and financial services here's how moore views the competition. >> if we're talking apple, google, facebook, amazons of the world, they are always a threat. but in our view we have fantastic partnerships with all of them. we would be silly not to always be aware of our environment and where -- how customers are living their lives >> now, apple, amazon, and facebook all have representation here at money 2020 this year a sign of their growing presence in this space, whether it be as partner or threat or maybe both. guys, back over to you
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>> deirdre bosa in vegas deirdre, thank you for that. let's get back to headquarters and get the european close with seema mody >> stocks mostly higher in europe, but modest ahead o thursday's ecb policy meeting. spain is on the rise, offsetting worries about the country's current political situation. also point out italy is getting a lift from the likes of fiat chrysler the automaker's quarterly operating profit jumping 17%, helped by strong performance in north america and improvement in europe and latin america that stock up 5% also in italy is uni credit. it accidently released earnings due out next month the bank, which is in the midst of a big turn around plan, reporting an increase in third quarter net profit as it experienced lower loan losses. unicredit up 27% year to date, so a big move here for the troubled banking lender in italy. let's move to tech, ams surging
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today at more than 20% the chip maker posting a 79% jump in third quarter sales and issuing an upbeat outlook, forecasting very strong sequential sales growth. and if we take a look at pharma, novartis is falling, announcing it has delayed a possible spinoff of its alcon eyecare division until the first half of 2019 signs of a slowdown in growth of the euro zone as pmi fell more than expected this month, down 0.8 to 55.7, but private sector activity remaining strong with eu companies hiring at the fastest pace in a decade take a look at the euro. we're higher around 1.17, though guys, back to you. >> seema, thank you for that seema mody back at hq. also back at hq, contessa brewer >> the war of words continues
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between president trump and republican senator bob corker in a series of morning tweets trump called corker incompetent and criticized him for not running for re-election. now, corker told reporters this is just another example of how the president is dividing the nation >> sad from my perspective for our nation and i think the worst of it is going to be just the -- i think that will be the contribution that hurts our nation the most. >> you think the president's debasing the nation? >> i have no question that's the case, just in the way he conducts himself and goes to such a low level i do >> and corker went so far as accusing the president of debasing the nation. a new law that cracks down on walking and texting takes effect in honolulu tomorrow. that city passed a law earlier this year that allows police to fine pedestrians up to $35 for
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looking at their electronic devices while crossing the street honolulu is thought to be one of the first major cities to enact such a law check this out, china has built the world's largest radio telescope to further its search for extraterrestrial life with more than 10,000 cables, 4,500 reflectors, and a huge saucer. look at that it's as big as 40 football fields that's our cnbc news update for this hour. let's get back to "squawk alley. carl, if they can't see us with a saucer that big, they are not going to find us >> okay, all right, doctor, dr. contessa, thank you very much when we come back, cnbc exclusive with kris jenner life from the ceo summit in new york. as we go to break, rally on wall street with caterpillar and 3m powering the dow higher. s&p is up 4.
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stocks rallying this morning. the dow up 187 points. many indexes near the highs of the day. let's bring in ubs director of floor operations art, always great to have you here how much of this is an earnings story? amazing week last week, perfect for the dow. is that why we're continuing this march higher? >> well, i think, clearly the dow is the outstanding index
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that's moving about. what -- as you noted, it's a price-weighted index, and, therefore, the highly priced stocks have a disproportionate effect and we're seeing that with caterpillar and a few others i think this week could be kind of critical for the market last week they set a rare condition. the dow and s&p had record closes five straight days. they had record closes six straight weeks they had record closes seven straight months. that's never happened. i don't mean in my history, it's never happened in the history of the market >> well, they are practically the same thing at this point so, when you look forward to, say, thursday, which is a big day for tech seems like half of the blue chip names in tech reporting that day. is it going to be more about the guidance and what we expect to
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see towards the end of the year, or more about earnings that they report right now >> i tend to lean to the guidance i think people want to see where they move out. while it hasn't really hurt earnings in most cases here, we still have the fog of the hurricanes in some of the data that's coming out. i'm hoping to get a clearer picture on oil, both tonight and tomorrow and see where we go from there i think this could be a critical week for the market. if we're going to have a blowout peak, this would certainly be the week to get it done. >> also on pins and needles over the fed decision, which we are expecting very, very soon, according to the president last night. goes to asia next week should get that decision before then it feels like we've come to a place now where it's the status quo current fed, which is helping the markets quite
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nicely, yellen or powell, or what the journal called the change agents. would that be disruptive there's a debate going on. >> well, could be, but i think that if the president sat with his advisers and thought carefully about it, he has the potential to influence the fed in any greater manner since woodrow wilson, and if i were he, i would do a kind of stealth move i would go with powell i might put taylor in at some capacity, but i would try and as quietly as possible reform as many openings as i could find. because if they want to get the economy moving again, one of the things they talk about is deregulation, and it's certainly bank deregulation. clearly, the community banks and others and he can put a large enough influence in the fed governance to get that done he doesn't have to do it by standing his foot and waving a
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flag, however. he can get it done quietly >> really quick, what do traders say about corker/trump today >> it's unfortunate. we think it's beginning to cast some doubt over the tax plan, because corker could be a valuable support if they are going into it with guns blazing. that raises some doubt >> going to be an awkward lunch. >> yeah, always great to have you, director of floor operations for ubs when we come back, a cnbc exclusive with kardashian family matriarch kris jenner live from the women's wear daily ceo summit next.
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i'm scott walker coming up today, leon cooperman is with us exclusively for the hour today tops on our agenda, cooperman's take on the stocks as the dow hits a record high, including caterpillar, 3m, fangs, also weigh in on tax reform and the bitter battle between adp and ackman "halftime report" noon eastern sara, see you in 15 minutes. >> all right, see you then the kardashians have certainly become a household name, "keeping up with the kardashians" launched about a decade ago, but since then kris jenner and the family have created a multimillion dollar empire that includes tv spinoffs, beauty and retail brands, and many high profile business partnerships. our courtney reagan is at the women's wear daily ceo summit
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with kris jenner herself courtney, take it away >> good morning, sara, thank you very much. i think empire is quite a way to describe everything you've built with the family, kris, thank you for joining us >> thank you for having me this is exciting this is my first time here, so i'm really, really excited >> a lot to talk about in retail and fashion, and especially what's going on with kylie cosmetics. you revealed some pretty blockbuster revenue numbers, $420 million in just the first 18 months, and it's only sold on the website. >> it's only at e-commerce right now, that's right. >> are you looking to partner or build your own kylie cosmetics stores what's the future of the exposure for kylie cosmetics >> i think the goal in the future is to just build the whole infrastructure and perhaps figure out what a retail model might look like, that business model that can take it really globally around the world. and there's so many people that on e-commerce that can't get it quite as easily, so we've recognized that, but she's got -- she's just scratched the
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surface, and there's so much more to do with the brand. she doesn't even have color cosmetics yet, the foundations, the blushes, you know, there's so many pieces of the puzzle that have to be put together to create an entire, you know, line of cosmetics and she's so excited about it. she's already gone right now we're planning to head through february, i think it is, and valentine's day, and after that she's got so many ideas and so many ways to, you know, explode in another, you know, another line of her kits and just so much to look forward to. >> and how are you doing this financially? i understand it's mostly self funded do you not need equity partners for this as you explode bigger and bigger >> well, i'm not -- it's certainly worth exploring, but right now, you know, she's very smart about keeping it all in the business she owns it 100% herself, and she doesn't have any investors so, it makes for a wonderful
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opportunity to be able to, you know, one day do this with somebody i think that right now it's because we're such a small business, it's the infrastructure and the advantage of having a bigger, you know, brand attached to her company would be really advantageous, because she would be able to immediately have all the people that she, you know, her fans, her followers, everybody that she is doing this for. she's just doing this because it's really her passion. it's so authentic to who she is, because she's wanted to do this since she was a little girl. to see her be able to have this kind of success is something that she really loves is really great. >> you must have been approached by este louder and l'oreal and want a part of it, if not all of it >> we've talked to a few people and, certainly, there is interest we'll see what happens, you know, totally see what the future might bring, but she's
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really -- i don't think she sees herself stepping away from this brand for many years she's 20 years old she launched this a couple years ago now and it's something she really wants to stay attached to for many years she's really, like i said, scratched the surface. >> it's not the only beauty brand that your daughters have there are a number of others is there room for everyone is there customer overlap? are they serving different consumers? >> i think as a total family unit we have about almost 800 million followers on social media platforms combined, and kylie has 200 million of those and kim, for example, has close to that. so, i think because there is -- it's almost two different generations, you know, there's an age gap between kendall and kylie, and it's a different audience, it's a different demographic almost, and then they overlap so that's what makes it so cool. when kim came out with her
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contours and that was amazing, because that's what kim is known for. and that's her whole, you know, her whole passionate -- the thing she's been researching for so many years and the thing that she's so proud of and the thing that she works on so much just t launch with that product, and, you know, in a range of colors and make it something that was so accessible to so many, but it's the same thing. it's trying to get that distribution. >> right. >> around the world, you know. we ship internationally, but it's still a bit of a challenge when you don't have a distribution center in the middle east, for example, where it would be one of their greatest. >> it would be. >> markets. >> i think sara eisen has a question sara >> yeah, kris, a broader business environment question. you're an entrepreneur and a reality star not unlike our current president. what's so interesting is stocks are at record highs as we speak.
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confidence is up from small and big business i'm wondering if you think president trump is good for business. >> you know, i'm not someone who really speaks out politically one way or the other because i just have my own views that i keep it myself but i think at the same time what i see happening in business today is smaller business owners, the opportunity to be able to have the freedom to go out and do your thing and have immediate feedback on whether something works or not i think businesses -- i have five very strong women that i've raised as daughters, and i have a son who loves what he does, and they all have their own businesses that are driven by e-commerce, and i think that because what we do is in our own neighborhood in calabasas and our offices and our homes, we aren't -- we do everything so --
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it's just a small little window of an office that we can get immediate feedback that really doesn't concern anybody else, you know i'm just, you know, concerned with exactly what's going on with each different company, and i don't really think about, you know, what someone else is doing to affect our business because we get that instant gratification, and then we're not always right. >> true. >> i don't always win every time. >> true. >> you dust yourself off and you pick yourself up and that's the great thing about our country is we have the freedom to try and do different things and it's an amazing opportunity. >> last question as we send it back are you going to manage the next generation of the kardashian/jenners >> you know what, i think everybody has to do in their life what they love. >> yeah. >> and i think that's what i've found tonight most successful thing for my girls, my son, my family, is we all do what we really love. >> right. >> and that makes for me, you
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know, their success. >> thank you so much, kris jenner, really appreciate you joining us here today. >> thank you. >> i'm going to send it back to you all at the new york stock exchange. >> nice try getting her to get whether kylie is pregnant or not. "squawk alley" will be back right after this
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dow briefly up 200 points. obviously on the back of cat and 3-m as the index continues to
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gain some steam here there we go. ten-year, by the way, at 2.4 and above. talk a little bit more about this rally when we come back alerts -- wouldn't you like one from the market
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when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. watching the impact of some of these high-priced dow names
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on the overall index it's caterpillar and 3-m today "the journal" has a piece up that the difference between the dow and the s&p, because of dynamics like this, is the largest in 15 years. >> wow. >> and to what extent i wonder is it some of that same dynamic of the rich getting richer in the dow's big companies, s&p more represents everybody. that index, even taking a look at the trade today up just .20%. >> mcdonald's is holding the dow and chipotle reports after the bell you mentioned the contrast in charts in ge and 3-m due to chipotle and mcdonald's over the last few years, a role reversal and analysts looking for 1% comps so mcdonald's is really killing in in the restaurant industry we'll see if chipotle offers investors any home it's been an underperformer. >> been some downgrades. it will be chipotle and at&t's tonight, amd as well so we'll have some tech wood to chop tomorrow as well. >> high expectations out of amd.
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of course, they have been killing it over the past few minutes. amd and nvidia used to be perennial losers to intel. >> and just like that, get the chart right up there also, it's interesting to watch the body language around this luncheon with republicans today. president trump, senator corker both there. >> yeah. >> let's get over to the judge and "the half. all right. welcome to "the halftime report." i'm scott wapner the index is the best performing of the major averages over the past throw months so how can it really climb with us joe terranova, stephanie link, josh brown and jon najarian and our special guest, leon cooper man of omega advisers, with us for the hour today from florida the dow almost halfway now to the 24,000 mark. lee, it's good to have you back. how are you? >> thank

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