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tv   Power Lunch  CNBC  March 25, 2019 2:00pm-3:00pm EDT

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>> one would certainly hope he didn't know he was being recorded but in some states, that's a violation of state law. >> absolutely. yeah it's one we're well versed thank you both "power lunch" is going to take things over. i'll join tyler. it begins right now. so, so much to talk about. kelly, see you in a moment welcome to "power lunch. i'm tyler mathisen new at 2:00 today, apple takes its boldest step yet away from hardware and into services jumping with both feet unveiling a new tv service what does it state for apple and its rivals wild story in the last hour, we've been talking about michael avenatti, the lawyer that stormy daniels among others charged with extorting nike out of millions of dollars this gnarly one ahead.
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the great rate debate. how much lower will bond rates and mortgage rates go from here? a see saw day for stocks major averages trying to avoid a second straight day of losses. "power lunch," the deluxe edition, starts right now. >> yes, it does, welcome to "power lunch," everybody lots of news at this hour. let's begin with apple tech giant holding big event with a profound pivot away from hardware julia boorstin out of cupertino with the latest headlines. julia? >> reporter: kelly, that's right. apple just announcing its revamped apple tv will be available starting in may through apple tv software update they're designing this to be a destination for all of your video content if you subscribe through a regular provider such as spectrum or streaming bundle
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through a directvover h or hulu have a log-in on your apple tv app or if you don't pay for a bundle, you'll be able to subscribe to other apps a la carte such as hbo, starz, epix, cbs all access, those will live on the apple tv app and get everything in one place. it will be easier to navigate. it will be easier to find things and you won't have to toggle back and forth between different services now we are waiting to hear more about the original exclusive content that apple has been working on that's going to be the next big thing they announce but in the meantime, we've got a bunch of other announcements. one of which is the apple card apple announcing its working with goldman sachs to introduce a new kind of credit card that takes advantage of the power of the iphone within minutes, you'll be able to get your apple card, begin to be able to start using it. right away, worldwide. it will be like apple pay. you'll have it always with you
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and in the apple wallet and be able to earn something called apple cash, a reward system where you get up to 3% back of everything you spend with this type of digital card you'll be able to have a physical card using it on your phone and they want to make everything about this process including customer service easy as messaging with a friend they're also making news about apple news apple news plus saying it's much more than just magazines in addition to the magazine service, that's based off of texture, the app they bought last year, going to be $10 a month. part of the service is going to include "the wall street journal," the los angeles times and more than just magazines and apple arcade, a single subscription service with access to 100 new and exclusive games not just for the phone but also
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accessible on your flat screen tv or any other device but not available on any other platform and this will be new games all the time so now just waiting for the big announcement of what this new streaming subscription video service is going to be like. we'll be listening tim cook is back on this stage and we'll be back with more. >> thank you very much let's break down these latest headlines with ed lee from "the new york times" and walter piecyk 189 to $220 price target with apple. let's go there first, walter you must like what you see and hear. >> well, the increased price target was more on 2020 numbers in our feeling that this elongation of the upright cycle was extending. in fact, for services today, we're more concerned about a sell-off on some of the disappointment it's hard for apple to impress people, especially in the media
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world with the amount of content. we'll see. there's still obviously some comments left to be made as far as the original content. >> would you characterize what's going on today is the big pivot in the company's evolution from a single minded focus on selling devices to a world where eventually, more of its revenue may ultimately come from services including credit card fees for good nk saness sakes, original programming and apps. >> it's a pivot that's been going on for a while two executives, they spent or green lit i think 300 or 30 original programs. they spent probably a billion to $2 billion on content. there's been a lot of discussion with the management team on conference calls on services i think this is more of the advertisement to those in content land
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probably card out some celebrities that have had a positive experience with apple, talk about their brand and focus on prooif sichivacy. everything they've announced we're not going to take your data we're not going to abuse the customer's information that's going to be a key part and then the willingness to spend. this is more of an advertisement for a longer process to get into the services space a lot of people are talking about apple versus netflix the bigger issue is the u.s. alone, 85 million households spending more than $100 a month on their paid tv services. it shouldn't necessarily be an apple versus netflix battle. we're very early stages in how people are shifting, how they're consuming their content. >> do we know the pricing yet? >> we don't. >> what do we know about the interface? >> i think i was just watching it now, the deals they struck with the paid tv providers, even hulu, i'm surprised being part of it but disaggregating the
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content and then sort of putting it in the apple format kind of nice if you're an apple customer and the interface. >> that being apple tv. >> the apple tv interface and software design and a big plus i think apple is doing their best to sort of put their best foot forward that is what we do well. it's all other people's content right now. they're talking about the content they're about to show they funded themselves but that's like a smaller part of this ultimately. it's an advertiser to the bigger bundle that they want you to buy into, but these are bundles you're already buying into, whether it's spectrum or hulu or other things i haven't seen the big, big switch yet in terms of we're a full service provider. that's what we're going to wait and see. >> am i going to be able to get netflix on these things? here i come. i'm one of these people who spent a lot of money on cable television fortunately, we work for comcast, i get a nice discount with comcast >> nice service.
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>> very happy with that. >> we couldn't get the comcast discount, by the way. >> but my hypothesis, people end up paying roughly the same because they're going to have my netflix subscription, got to have that, my apple subscription, got to have this one for that >> it's another cord, another bundle but that's the right way to think about it. netflix is a cheaper cord, one you can use easily, turn on and turn off that was the appeal and why 60 million subscribers in the u.s that's why they're competing with each other. apple was a distributor, so was netflix. all the originals but really, they're really a reseller of other people's content as well most of the things on netflix is licensed and apple doing the same thing, just going about it in a slightly different way. >> walter, wonder what you think apple needs to hit in order to really move the needle here. of course, these are pointing towards years long future growth but as i mentioned earlier, by
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goldman's estimate, 20 million people on the streaming service, price depending of course and move by next fiscal year >> they have 900 million active iphone users a billion and 4 across the platform see if the tv appears on max and obviously appear on the roku, so a way to further expand it i think focusing on whether they get to 20 million in two years or three years, misses the bigger opportunity that if this is something that they can develop or say tract iis attraci in perspective netflix has what, 150 million global customers and they spend $15 billion on content. half of which is original. apple generates 65 billion of free cash flow a year. hundreds of billions of cash they have a brand, an r&d. they'll make it easier for you, keeping it within the native app. they still have to go out and
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execute but they're coming at it from a very strong position, a strong brand and something i think consumers really want to have in an age where privacy has been a big issue. >> walter, thank you very much ed, thank you as well. both of you stick around, we're told and check back with you in the next half hour for more on these content wars in the meantime, take a look at the big drop with shares of nike this afternoon. michael avenatti charged with trying to extort the company eric is here with those details. >> that's right. avenatti arrested today on charges he conspired to commit extortion against nike threatened nike he would go public with claims the company was paying high school basketball players he wanted $1.5 million for his clients and another $20 million for himself. his client is an aau coach whose team was sponsored by nike but lost to that sponsorship avenatti tweeted at 12:16 p.m. today to hold a press conference tomorrow but then 14 minutes
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later, he was arrested in midtown manhattan. a lot of events happened took place just last week as avenatti wanted to time his press conference around nike's earnings and the ncaa basketball tournament the fbi recorded some of the phone calls and meetings and detailed some of the specific threats against nike in the complaint that just got released all of this coming just as federal authorities in los angeles charging him today with money laundering and wire fraud because he received a $1.6 million settlement on behalf of the client and didn't transfer money back to the client he's having an interesting monday. >> stay right there. michelle caruso-cabrera also digging through this and again, he asked for 1 million and a half is that what triggered the wiretaps and all of this >> $1.5 million as eric talked about for this aau coach and then claimed he was going to conduct an internal investigation about this on
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behalf of for the benefit of nike and get advance of these millions of dollars and that's what kind of triggered all of this. >> or take $22.5 million as a confidentiality agreement and then wouldn't bother with the investigation. >> behind the scenes of a scandal. so avenatti involved in a lot of these things, right? stormy daniels, et cetera. he recounts on tape, supposedly, he says to the lawyers, listen, let me tell you how that's going to go down we're going to go public and then get thousands and thousands of phone calls from parents across the country and 90% of it is going to be bs. but 10% of it is going to be real and take that to the "washington post" and we're going to take it to "the new york times" and espn and hold news conferences and the company is going to suffer cut after cut, that's how it's going to go down. >> here's the fascinating question is michael avenatti in a way a distraction, eric, from, obviously, he's part of this but in a way, a distraction. is there a core issue of his
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claims that is actually a problem? >> we all know that kids are getting paid we know that nike sponsored aau teams and college kids get paid and when they're college freshmen, probably money coming at the high school ranks certainly some smoke, fire, all that going on. it's just interesting to me if nike is doing these things, do they need the federal government to help them out if they really are paying high school athletes? it is going to come out. he may not be 14urks00% lying b companies p companies pay. >> they were paying high schoolers family members at the minimum, nike will have to say something about that. >> this press conference was supposed to be tomorrow. as you say >> he was trying to do it last week and waited to see, maybe they would play ball with him and get the money. >> there's presumably not a press conference to be had so we're now left with the focus on michael avenatti, the charges against michael avenatti but his
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claims against nike, what follows up, and your point about the company having to address this what forces the issue? >> i don't know. i mean, i assume they've got lawyers involved, clearly, already from the indictment. they had lawyers involved. >> the aau coaching fraternity and the shoe companies has been an unholy one for a long time. college coaches, as we know, have gone to jail and/or lost their jobs because of relationships that they had with other shoe companies. >> we know it's happened the lsu coach in the sweet 16. it's not there we know it's part of reality and i think what happened is the aau coach lost the sponsorship he didn't like it and said, all right, i'll get something out of this because i know they're paying athletes. let me see if i can get something. >> nike indictment is 12 pages i highly recommend reading that. the california case, yeah. >> he's had lots of financial
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issues, avenatti, hasn't he, with disputes with his partners? >> i think they were talking about him being under duress and now this. >> apple's new event as it breaks, stock down 1.5% right now. almost $1.75 there may be celebrities president trump declares victory over the mueller report saying he was completely exonerated but there are some who say the issue has not been completely put to bed and fell somewhat short of a total exoneration. what happens next and wh iatt means for the president's agenda stay with us imagine traveling hassle-free with your golf clubs.
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a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back i'm julia boorstin with the latest from apple's big announcement here in kup cupert, california apple tv plus on stage we see some of the big content creato creators jason momoa better known as aqua man is on stage. steve carrell working on the
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morning show it was kicked off by steven spielberg up there talks about what he's working on for this new apple tv plus service as well tim cook said they partnered with the most award winning visionaries to create this new streaming service and seeing those folks up on stage. we'll see more of them and then hope to learn more about how this content, this [ expletivex content to apple is packaged and available to consumers we'll see if we learn about pricing. >> julia boorstin, thank you president trump claiming full exoneration and the report stopped short of saying that it's not over. eamon javers with what's likely to happen next >> that's right. the thing that's going to happen next here is big battle over the mueller report itself. what we've seen so far is just the attorney general's letter of four pages summarizing the the contents of the mueller report in his view. we haven't seen the actual report itself and that's subject to some wrangling.
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he'll put out as much as he possibly can, all of that giving this white house a real wind in the sails today. it's a big political win for the white house. a total and complete exoneration of himself expressed some frustration throughout the day that this investigation ever got started in the first place and suggested in some comments earlier this afternoon that he would like some unspecified action taken against the people who are behind the russia investigation in the first place here's what he said. >> there's a lot of people out there have done some very evil things, very bad things. i would say treasonous things against our country. we've gone through a period of really bad things happening. those people will certainly be looked at. >> the president suggesting somebody committed treason in all of this and saying those people will be looked at the president notably not namin
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names of who to look at and what it means procedurely and how much of this mueller report, the rest of us get to see. >> thank you very much eamon javers at the white house. stocks are moving decidedly lower now down 100 points, half a percent and you can see a third a percent for the s&p 500. ten year note went below 2.4%. a remarkable move lower. 7% in the past week alone. how should investors maneuver in this market. sri kumar global strategies and jim paulson with us with luthol group. >> we've decisively moved below 240 today and my target is below
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225. once it does and see economic continuing to gather, i'll have to see whether we are going to be looking at a 2% but moving further down from current levels and that is based on the fact that you have a lot of signs of weaknesses on the u.s. side and the fact that the 2 year yield and the 10 year yield are chasing each other down today. not only the 10 year you referred to but the 2 year has moved down 7 basis points. this is why the 2 year is going down at the same time, the economic weakness signs are gathering and nas why the is 10 year yield goes down. >> let me ask you before we move on if we have an especially u.s. slowdown, 2% or lower.
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what if we have a slowdown >> if the u.s. does not slow down, i would not expect the 10 year yield to go down further. mostly a reflection of what is going on in the united states, kelly. so if you have a global slowdown but not a u.s. one, then you do escape i mean, the curve on the 2 to 10 side and then you do not have it on the 10 year yield either but my expectation is that the u.s. will slow down further and that's why i would be looking for the 10 year yield to go down decisively >> where are you on what we've been talking about which is not only the slide i momentary inversion of the yield curve and what should i do as an investor if my portfolio has been sort of optimized for
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growth environment >> yes, tyler. i think the yield curve version is spooky. it's got a great storied track record for it's a spooky indicator and getting deeper as we speak, spoke to i think it's going to have to get resolved fairly soon either with stronger data coming out on the economy or the fed is going to have to cut the funds rate and i think one of those two probably happens fairly soon i would stay bullish because i think the odds of recession are still more remote than likely and at least imminently and if we finally do decide we're not going to recess, i think there's quite a bit upside here for the
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stock market now, being exasperated more so with lower yields than we had earlier but what i would do is pull in my bullish hill i've been halfway between maximum bullish and neutral. more like a quarter over my neutral. >> what does that positioning? this is an interesting year because everybody told us in january, coming off the big sell off in the fourth quarter that you had to be defensive and turns out the technology has been the best sector because of the slow growth environment. i understand what you're saying about trimming the bullish sales and all of that. do you stick with technology or where would you go >> i would i'd still be, also, kelly, tilted towards more aggressive stocks not totally, i'd own some of the defenses but be tilted towards tech i would start on days like today, pick up some of the financial stocks, for example, that everyone is running from. i'd look at weak dollar plays
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like materials and i would over markets in particular right now. a couple of things, we've got a reevaluation of equities and improving the value as we lower the competitive yields and the big thing for me is we've got a lot of fear building here. fear from an averted curve and a weird fed announcement of guaranteeing the rate hikes and negative yields in the world fear from the 10 year anal lna edward -- anniversary. the likelihood we don't recess >> i think it's a difference between the short-term and the long-term. i would agree with jim in terms of picking up good value in the short-term but the clock is running. so as long as the fed pivot continues to support equity holders, it supports some going
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into the risk on equities for some time to come. but sooner, rather than later, the recession fear and the pushing down of the equity valuations is going to start dominating over the ecm monetary policy, in fact, on equity so even if you have lowered interest rates, my expectation is that equities will eventually suffer high yield again that could come under pressure. some leeway before you have to make the change. >> we'll see if the u.s. economy can gather steam in the meantime sri kumar and paulsen, thank you. shares of tesla falling today, concerns about sales can the company deliver? cong nion "tradingatn" mi up. all the news at as it happens. stay with us
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average implying 30% upside. who's right? gina sanchez are your "trading nation" team today ari, this stock is sagging down towards the lower end of the long standing range. is this an opportunity or would you stay away? >> this is one we've been on the sidelines with, avoiding both on the long end and short side, given how directionless and choppy it's been that's still the case. looking at the chart, it's paid to by when it's ugly and sell when it starts to look god wi and then considering how bad it's performed, in terms of levels, $250 is a big support range level. 360 is the upside there. you can see the flat 200 day that exemplifies that directionless action but if we allocate towards stocks that trend, this isn't one of them. we're on the sidelines >> gina, this is a company that's dealt with, you know,
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some doubts around its ability to produce enough, to meet it targets for years now but now some others. >> you look at the rvc analyst report and it was pretty specific about what it's concerned about. you look at cutting delivery estimates, delivery concerns, cutting demand estimates and then concerns around margins $35,000 price point for the model 3. there's big concerns they're not able to keep costs down enough in order to really produce price margin those don't add up tesla is still being judged as to whether or not it can execute and clearly, the jury is still out. >> next couple of quarters can be important when it comes to make or break. ari, gina, thank you very much for that for more "trading nation," or our web site, head to >> ahead on "power lunch," a big
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week for boeing. we'll explain why. you see the stock there moving a little bit higher today. will it be able to bounce back from those recent crises plus, apple unveils a new tv streaming service. what it will mean for amazon, netflix, roku and others and the next big ipo pinterest goes public. details from the filing. that you need to know about. all this when "power lunch" returns. >> and now, the latest from and a word from our sponsor. >> some people refer to the vix as the market spear gauge. i like to refer as a gauge of uncertainty. while an elevated vix may imply the market is headed for big moves, those moves could be to the downside or to thepse. uid i'm randy frederick and schwab is the better place for traders.
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what a busy day. lots of twists and turns right now, prosecutors in new york having a press conference to discuss extortion charges against the attorney, michael avenatti it involves nike listen in. >> the scheme to extract more than $20 million in payments from a public company by threatening to use his ability
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to garner publicity toward inflicting reputational. nothing to do with zealous advocacy for legitimate legal work avenatti used legal and extortionate threats to obtain millions of dollars of payments for himself. repeatedly pressured the company to pay or risk having avenatti hold the press conference that he claimed would dramatically drive down the stock price of the company and its market value. as avenatti threatened in one recorded meeting, if he did not meet demands, the company might die but if not, was going to be inflicted with cut after cut after cut. as alleged, the entire scheme
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played out in less than a week avenatti first met with representatives of the company last tuesday march 19 in manhattan. represented a client who coached an amateur high school basketball team sponsored by the company which is nike. of the team had recently lost that contract worth $72,000 a year claimed there was potential misconduct by the employees. the allegations were similar to those that formed the prior criminal prosecution brought by office, the payments were made to families of high school and basketball players in that meeting and subsequent conversations recorded part of our investigation, avenatti threatened to hold the press conference which he would make these allegations public if the company did not agree to
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his financial demands. avenatti promised to forgo the press conference and allow the company to avoid financial harm. if the company agreed to pay his client $1.5 million and for avenatti himself to retain avenatti and another co-conspirator to conduct a multimillion dollar internal investigation and internal investigation that the company did not request. avenatti made clear that he was approaching with such a press conference namely on the eve of the annual ncaa tournament and the quarterly earnings call. as avenatti threatened during the investigation, if the company did not meet his financial demands, quote, i'll take $10 billion off your
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clients market cap in the recording meeting the next day with representatives of the company, avenatti made clear he expected to be paid up to $25 million with 12 million to be paid up front and deemed earned when paid. when asked by a lawyer for the company why the company would agree to such an arrangement, avenatti responded in substance he had the company in a very vulnerable position where he could wipe out 5 to $6 billion of market capital. when paid avenatti to conduct internal investigation, avenatti told the company it could skip paying for an internal investigation if instead it simply paid him $22.5 million. then avenatti said he would, quote, ride off into the sunset. pressure and a sense of urgency were used in delivering these threats. as you can see from the
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timeline, this all happened in a period of three days from day one, march 19th, tuesday, this was the first meeting between avenatti, representatives from nike and the co-conspirator at this meeting, avenatti for the first time made demands and threats. following that meeting, representatives from nike called prosecutors to my office and informed our office of the extortion demands and threats made by avenatti going forward, all interactions between nike representatives and avenatti were recorded and overseen by the fbi, my office on day two >> that's u.s. attorney jeffrey berman of the southern district
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detailing some of the play by play of this really ridiculous scheme that the lawyer michael avenatti had to blackmail nike and get $20 million to $25 million out of them. otherwise, he was going to blow the lid off of a scandal in his words, involving nike's payment of high school basketball. >> as you suggested earlier, in a way, we have to put that scandal aside from what's happening with michael avenatti and his methods here by the way, at the same time, in los angeles, there's two with charges against him. the u.s. attorney involved with those say michael avenatti could face up to 50 years in prison if convicted on wire and bank fraud charges. so extremely serious for him right now. the big question for the company and the stock today is whether we'll hear more details about the aau coach who had come >> and apparently, this was all going to be timed to coincide with nike's earnings report later this week. >> it all started last tuesday and it looks like because of the
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timing of his tweet and then just this morning, they were waiting to see which day was going to go forward with it. >> we're going to take a quick break and be back with more on apple, more on the nike story as rks r u icarand we'll watch the maetfoyowhh e down right now. i'm working to keep the fire going for another 150 years. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪
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s. welcome back we're getting more details on apple's new tv service julia boorstin has it out in cupertino. >> reporter: oprah whin free is part of it with tim cook talking about her contribution and this platform to reach apple users around the world in terms of apple tv plus, subscription service but don't know how much it will cost yet the company just saying it's going to be launching some time this fall. all with original and exclusive content. no library content not the old movies and tv shows like you'd find on hbo or netflix. this is just about premium exclusive content. apple put a lot of big names
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part of this service launching into 100 countries around the world. on stage today this morning and in addition to oprah, who the big finale talking about why she's so excited about her documentary project with the service, a string of stars they had really big names, many known more for movie roles reese witherspoon, jennifer aniston and jason ma momoamomoa. and you'll be able to log into your cable tv bundle through the likes of charter spectrum or even those skinny bundles through the likes of hulu or subscribe to a la carte apps as well >> ed lee's reaction and walter piecyk and mark mahany still waiting for pricing. >> no pricing. what is it going to cost me? i'm sure it will be competitive.
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i don't think it will be out of range. what i think is hard is to understand how they could tie up these thing differents apple music and news what does this tv thing cost and if i buy into an hbo subscription but not a showtime, how does that work so that's going to be the big question as we get to the finale of this thing but i am impressed by the stars able to corral and get on stage with the stars. that's a signal, hey, hollywood likes us for now and wants to work with us in some way >> anything you've heard so far today that's changed your view in one way or another on apple's shares >> not on apple's shares i'm thinking about the other names in play now. netflix, roku, amazon, i think for netflix so far, it's a non-event and haven't seen much movement in netflix's stock. it will be dramatically outspending on original content including apple, something like 7x times as much roku, interesting, stock is up because apple called it out as a
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distribution partner and roku's raise on tv is to get, have people think about it as a neutral switzerland. one more package streamable via roku a positive for that company and amazon, the other kind of internet major sort of media company out there, also seems like a non-event and competing package. the price point is key here and what to think about. $8.99 is the basic plan with netflix. something like this. if you're really wanting to be disruptive coming below that, i doubt that's what we see and in terms of a broad tv service package, my guess is $15 to $20 a month. >> the event apparently now concluded. that's the sum total of the announcements. i guess we're going to get so maybe price is not been part of this. why do you think that is >> because i don't think they have enough content to justify any price that they could say they wouldn't be ridiculed by the media community. whether $6 or $8, for the amount of content they have, to be able
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to charge with those types of dollars, would be an issue with the media. so i think better for an advertisement to tell the content community, look, we've got these stars already. we're going to continue to build this maybe by the we'll continue to build this maybe by the fall, we'll have enough content to justify some type of price. but this is going to be a multi-year process for them. in order to build up enough content to generate a meaningful monthly bill for customers >> could it also be that apple is still negotiating with some of the providers over what those -- what those providers are going to want to get >> look, the media industry is not that big i think we have a general sense of what's been green litt by apple so far and i think they have signed up i don't know if overnight, you're going to create enough tidal wave of content to justify the $10 or $15 that netflix gets or even what hulu gets. hulu was included, but on the live side of things, not the
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library that hulu was selling for whatever it was. is this content enough to generate even those types of monthly revenue streams for the company in the near-term hard to believe that that's the case >> so ed, so we have for the sum total of announcements, apple news plus, $9.99 a month has magazines. they talked about apple pay with transit. the apple credit card, the appl which was a surprise >> games, because this is an area that's no one's really dominated as of yet and an area that people have been trying to crack for a while. games are really sort of software, computationally heavy and it's hard to do over a wireless connection. if they can figure it out, like it seems like they have, that could be a game changer. they have green litt maybe 24 series if you work in television, you know, that's nowhere big enough of a slate to really command an audience you can go out and buy a studio with all the cash that apple
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has, that can be something i know they've been looking at other things for a while and there are still some things available out there, if they're really serious about making content a big part of their services division, that's something they should think about, for sure. >> guys, thank you thank you all very, very much sticking with us throughout this announcement ed lee, mark mahaney it's a crucial week for boeing all the details with the stock leave the dow, next. w (danny) let me get this straight. after a long day of hard work... have to do more work? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you. ...or trips to mars. $4.95. delivery drones
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well, boeing shares are higher today as the company tries to get its 737 max planes back into the air. and phil lebeau has that story there were some developments over the weekend, phil >> yeah, let's bring you up to speed, tyler right now boeing is expected either today or tomorrow submitting the software fix for the 737 max. that is expected to be submitted to the faa once that happens, then it takes the faa maybe a week, no more than two weeks, is the expectation, for them to take a look at the software and then say, okay, this is what we think of the software proposal, the fix here meanwhile, u.s. pilots, as you mentioned, they have reviewed the 737 max fixes over the weekend. another 200 pilots and regulators will be briefed on
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those solutions on wednesday and one last note, guys. take a look at shares of airbus. this is a huge order that airbus announced today. 300 airplanes being ordered by the chinese government you know, they own several of the airlines in that country the book value, $34 billion. now, keep in mind, none of these planes ever sell at book value it's obviously going to be at a huge discount down the road, but that's what's going on with shares of airbus after announcing a huge order from china. >> phil, thanks very much. phil lebeau following it for us. as i mentioned, was the best performer on the dow earlier check, please! is next measure up? a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise
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check, please! >> checkplease!. two big dominant stories this hour one from apple, lots of big changes with gaming, which ed lee may have been one of the biggest undersung parts of this announcement also, we're talking about credit card and how that might be a transformational product it's interesting, isn't it, that apple, which used this device to go up and put it on the thing, now coming back with a plastic card, i guess. >> why bother? >> yeah. >> i think it's going to be titanium, actually >> titanium card well, i have one of those already. >> that was the expected news of the afternoon. then watch shares of nike. we got word that michael avenatti from a tweet was planning this press conference to reveal some wrongdoing on part of an aau team. not 15 minutes later, we learned that michael avenatti is being arrested he's charged on two coasts, on the one with extorting nike in california with embezzlement and
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bank fraud >> embezzlement, bank fraud, tax fraud, filing false returns in order to get loans that he clearly thought he needed. pa busy day. they'll carry on with the "closing bell" in just a moment. >> thanks for watching "power lunch" >> the "closing bell" will start right about now. >> it is the final hour of trade. apple announcing its move into streaming. that stock is down, but the likes of roku up we'll explain why. and with the mueller report in the rearview mirror, what happens to president trump's economic agenda? plus, stormy daniels' former attorney arrested for allegedly trying to extort millions of dollars from nike. we've got the latest details the "closing bell" starts right now. ♪ welcome to "closing bell." i'm sara eisen here with wilfred frost, checking out the markets. we've been all over the map today. dow is lower at this


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