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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  May 3, 2016 3:00pm-4:01pm EDT

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followed by lou dobbs who will bring us the results. i will see you thursday. i'm off to texas for a quick trip. ashley webster will have you covered tomorrow as we continue to watch p this crazy election. in the meantime, the close is happening now. liz: thank you, trish. wall street apparently got the memo. it's may and time to sell, at least at this hour. look at this, somewhat of a comeback right now for the dow jones industrials which is down 1212 points. -- 121 points. shrinking chinese manufacturing and the growing oil glut9 pressure the markets, but in the hoosier state it's primary day. you're looking at a live picture of a polling station in indianapolis. doesn't look a that crowded, but guess what? voters are making their choices in record-breaking numbers for both the democratic and republican races for president. donald trump riding the enforcements of celebrities like
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bobby knight and lou holtz building what latest polls say could be a comfortable win tonight. senator ted cruz making last minute campaign stops, very fast, very frequent with his vice presidential pick, sienna, again sate -- carly fiorina, again sating he will remain in the race. this as stories swirl that campaign cuts may be coming. will cruz's survival come down to dollars and cents? the democratic race could be much closer in indiana. latest polls are showing hillary clinton's lead over senator bernie sanders falling to now just four points. former indiana governor evan bayh is a hillary supporter. we will ask him if bernie loses, will he still make an indelible imprint on hillary's campaign plans? plus, we're talking 2016 with america's two richest men, bill gates and warren buffett. they will pronounce what they think is the biggest threat to america, and how would they fix our broken education system? hint, it's not free college for all.
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look at, we're less than an hour to the closing bell. let's start the "countdown." ♪ ♪ liz: okay. look at apple, it's about to snap an eight-day-long losing streak. it is up 1.75% or $1.65. still, though, well below $100 a share. you know what? i'm thinking that may be partially what's behind an attempt by the bulls at a comeback with just 58 minutes to trade. look at the marks. we are down -- markets. we are down 128 point, but the dow has clawed back about 80 points. the selloff in large part due to maybe a couple of things, the 14th month in a row in shrinkage of chinese factory activity and a weak u.k. report, and they're renewing fears of a global showdown. rising crude output from iraq -- so they've finally gotten their
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activity up to scale -- plus the saudis admitting they're near record pumping, adding to concerns of the global oil glut. we've got oil names falling, oil prices are falling. worst performer today for the dow, exxonmobil. we also have schlumberger as a very big drag on the entire group. we have some names hitting lifetime highs, maybe you own some of these. chlorox had its fourth consecutive earnings beat and announced plans to buy renew life. molson coarse, you see up and about one and a third percent, and then we have food shares distribution giant sysco continuing to benefit from an earnings beat yesterday. we got a second straight record high in a row for sysco. to politics. today's the day, the day indiana decide in record-breaking numbers which person they would like to see on either party. early voting shattering the state's records at this hour. republicans voting in the
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indiana primary election might give billionaire businessman donald trump a nearly unstoppable leg up in his tumultuous journey towards the party's presidential nomination. on the democratic side after taking heat for saying that she would put coal miners out of business, hillary clinton now doing an about face as she campaigns for votes in coal country today. fox business ' jeff flock at a following station in -- polling station in indiana. some are predicting that we may very well see a real showdown on both sides of the aisle tonight. >> reporter: and it could go kind of late, you know? northwest indiana has a reputation for reporting real late, so, you know, let's not count this before it's counted, indeed. polls, there's one outlier that has ted cruz even winning x this is an open primary, so who knows how this thing goes. ted cruz, by way, still campaigning today. he was out this morning, on election day, calling donald trump everything today from a
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pathological liar to a serial philander to a narcissist to utterly immoral. other than that, he kind of likes him. but the importance of indiana cannot be overstated. this' what ted cruz said this morning. take a listen. >> i would say to the hoosier state the entire country's depending on you. the entire country is looking to you right now. it is only indiana that can pull us back. it is only the good sense and good judgment of indiana that can pull us back. >> reporter: he doesn't sound too desperate. on the democratic side, bernie sanders, you know, don't count him out of this one either. as i said, liz, it's an open primary. a lot of college kids in this state x so bernie sanders even though hillary clinton won here against even barack obama in 2008 could be a big turnout. as you reported earlier, early
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voting, all-time record in indiana, 280,000 people voted early. the last record was 180,000. bigtime there. we talked to one bernie supporter here at this polling place, which tends to be a little bit on the democratic side today. he says he hopes bernie wins, but if he doesn't, you'd be interested to hear his second choice. >> i think if it's bernie against -- if it's hillary against donald, i think we're going with donald. >> reporter: and how can that be? >> well, if you think about it, i think bernie people and donald people are looking for the same things, aren't they? they're looking to bring some jobs back in, rebuild the middle class and tighten up the borders and tighten up national security. they're just coming at it from different ways. >> reporter: i have given up, liz, on thinking how this whole thing makes sense. you know? it's in the hands of the people. [laughter] liz: and a ouing ija board. -- ouiga board, how about that? thank you very much. the front-runners have
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consistently topped the polls ahead of indiana's primary, but the winners tonight could be anybody's guess. why? specifically, it's because there have been only accept public sur -- seven public surveys over the past month. compare that to 17 right before the new york primaries. so could ted cruz and bernie sanders surprise us all? let's bring in matt schlapp and joe trippi. great to have you both. look, you could bring in, as i just mentioned, the ouija board on all of this, but to you first, matt. we have that one outlier poll that has ted cruz winning, but it does seem there's such a wave for donald trump at the moment. what are you predicting for tonight? >> look, i think this is going to be a really bold prediction, but i'm going to go with most of those polls that show that trump is comfortably in the lead. and i think, you know, i went to college in indiana, have spent some time out there, and i just think there's a lot of things about the indiana economy that really working with the donald -- works with the donald
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trump message of bringing back manufacturing jobs. i just think that this is going to to be a good fit for trump. liz: joe, on the democratic side bernie sanders is hoping to turn his luck although hillary has won the past five out of six state match-ups, here. however, if it's a close one, let's do it this way, if bernie sanders gets close, does he even further have a grip on perhaps how she shapes her policy? because the things that he says on the democratic side are getting a lot of voters' attention. >> well, certainly. look, he's already had an impact on the race and will continue to do that. he says he intends to take it to the convention, and i don't doubt that. she took it to the last state in june last time against obama. he certainly has a right to do that now. the one thing about indiana, though, is that, you know, he can't afford to just eke out a one-point michigan-style win that he had earlier.
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he's got to win big to open it up. i mean, which just does not look like that's in the decider at all. indiana -- in the cards at all. indiana's his kind of state. lots of college students, it's not as diverse as only of the other states that he's recently. so he -- it couldn't surprise me at all if he won it, but it's much likelier to be a one or two-point win and that doesn't do him good in gaining on her. liz: and, matt, they like bobby knight better than they like carly fiorina. as joe just mentioned, the college feel is certainly important. but to donald trump and his chances, there is a poll from cnn that shows 84% of voters believe that this matchup -- and this i got from warren buffett too, he absolutely believes the matchup will be donald trump versus hillary clinton. what happens then? does this race get uglier or finally turn to the real issues at hand? >> okay. so i'm going to say what you
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probably don't want to hear -- [laughter] but i think it's going to continue to be a kind of race where we're going to have charges thrown, you know, as a partisan republican, liz, i'll tell you i think clinton's played this game tough, and i think donald trump is going to play this game even tougher in front of the cameras, and i don't think necessarily it's going to be an issues-based campaign, it's going to be personally-based. and i think there's a lot of republicans who think trump might be the one person in our party who can stand up to what the clintons have done to so many republicans, which is beat them. liz: joe, what do you think? >> when you have two people with high negatives, one of them wins -- liz: good point. >> usually the way that happens is because it's a negative race. drive the other negative ratings up higher. i agree with matt, it's going to be ugly. liz: okay. we'll try and keep it pretty at least on the discussion with you two. >> i think joe's very pretty, you know? [laughter] liz: he thinks you're adorbs too. [laughter] great to see both of you.
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by the way, polls close in three hours in much of indiana. we're going to have more on the primaries though with former indiana governor and senator evan bayh, and we'll tackle some of the biggest issues on the campaign trail in part two of our interview with the two richest men in america, bill gates and warren buffett, specifically the biggest threat they see and how do you fix the educational problem. maybe it involves bringing in names like mark zuckerberg, who knows? closing bell, we are about 49 minutes away from this. look at all this red. there are a few bright spots on the dow 30 heat map covered in red. pfizer, solidly in the green, up nearly a buck. the drugmaker blowing away estimates in its first quarter earnings report, increasing guidance. also pfizer saying sales of its new cancer and arthritis drugs will grow throughout the year. pfizer moving higher by nearly 3%. and up next, the auto industry revving its engines for the month of april. car sales back on track, but which american model on all
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these roads on your screen has stalled out really badly? one particular model. you've got to hear which one. plus, we take it to the floor show on what car sales are saying right now about the u.s. economy. "countdown" coming back in a minute.
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liz: 44 and a half minutes
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before the closing bell rings. look at the markets here. yes, we look a little ugly at this point. would you call that ugly, austin? >> very. liz: oh, he says "very," you don't know anything. yes, it was worse before. the dow was down 220 points, but earlier the s&p was down 26, now down just 19. the nasdaq had been down 67, it's down 40 -- okay, that's ugly. i'll give that to austin. financials are pulling much of the markets down. they're feeling the effects of ubs' earnings. the swiss bank reported earnings in line with forecasts but did warn financial conditions will remain challenging with very low, sometimes negative interest rates x they expect, quote, abnormally low transaction volumes. so ubs down 7.5%. jpmorgan, wells fargo, credit suisse, all of them moving lower anywhere from one and two-thirds percent to nearly three percent down. but auto sales are on the right track. the winners and losers, though,
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are what we find most surprising. italian-based sort of new york company depends, fiat chrysler, actually did pretty well. ford, toyota, honda had a mixed bag here, but nissan, all of them together saw increases in sales mostly on their truck and sport utility vehicle side. gm, you have to hear this. gm saw sales fall about 3.5%. why? in very large part due to cadillac's disaster sales. cadillac's april sales fell 29%, but the company said that pickup truck sales remain very strong. volkswagen fell 10%, that's due to the residual effects of its emissionen scandals, but auto sales are usually a good indicator of consumer spending. does this give credence to the idea we might see a rate hike in june or some other indicator investors should be watching right now? the traders always have their eyes open. john corpina, auto sales look good, we have lockhart out of
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atlanta, the federal reserve atlanta bank, saying at least two more rate hikes in this year. do the auto sales nudge them along? >> i don't know. that's just an ingredient that's in the big pot that the fed's trying to figure out. as you were saying in the lead-in, the markets aren't that ugly. we were up yesterday, and i'll i'll -- we haven't hit the lows that we saw on friday. we're treading in place. i think everybody has been using earnings season, economic data, m&a activity, china, europe, all as reasons and excuses to figure out what's ion on in our market now and how the fed is going to use that information to adjust interest rates down the road. we're still in a real interesting point right here, almost 400 s&p companies have report ared earnings so far, so we still have a little more than 20% to go, so maybe that can help stabilize this market at this point. liz: you know, you had to mention austin's name. he's now trying to sign up with
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an agent at william morse. >> hook me up. -- >> he's behind the camera, we've got to get him in front. liz: i know. he's usually wearing a stained shirt that says, "new jersey: we'll take anyone." [laughter] larry shover, we have chinese factory activity shrinking again. normally i wouldn't focus on that too much, but tim cook said, oh, everything's fine in china, so we're fine. doesn't look that fine even though apple's moving higher today. >> yeah. and the stock market in shanghai moved a lot higherrer yesterday as the shanghai composite was up almost 2%. one number is not going to create momentum for the market overnight. there's a lot more going on behind the scenes. we do know there's problems of credit creation, shadow banking, but overall i still think china can pull out a 7% xdp this year -- gdp this year. i spent three weeks of the year
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in china, a lot going on. they're putting controls in place. the economy there is changing, it's changing very quickly, actually, from a manufacturing society to a service society. it's just going to take a while. it's not going to be a straight line. liz: boy, you sound like buffett. he loves china. doesn't matter if it has a few stumbles, every economy does. elliott warren, you could call it a stumble or a continuation on the path of a supply glut that doesn't go away. >> well, it doesn't go away. but you have to understand also crude -- we bottomed out around $26, so we've seen crude rally, what, 80% since then? we've had a $20 rally. liz: yep. >> to me, it's inexplicable, but i'm always mystified by crude lately. [laughter] i thought $42 was an interesting area. we got through that. it was sort of an expiration and a $2 click up. i have trouble saying oil's a big buy just because, like i said, there's a huge glut and we
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are up 80% in the last few months. liz: yeah. and we should also mention that the u.s. dollar index, while it's up, the dollar has been pretty noisy today. and anything that's dollar-denominated as a commodity like oil or gold becomes less attractive on a day like this. great to see you, guys, thank you so much for joining us. closing bell, we're now 39 minutes away. the nation's first treasury secretary is having his best year since 1789 when he took office. the latest honor for hamilton, straight ahead. and two men who own a lot of hamiltons weigh in on the 2016 race, national security and fixing the nation's education system. we're talking to the richest minds, bill gates and warren buffett. that's next on "countdown." ♪ ♪
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. liz: breaking news and the developments are still coming out regarding this tragic news out of iraq. defense secretary ash carter
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confirming the death of a u.s. navy s.e.a.l. hit by direct fire from isis. the unnamed serviceman is the first american to be killed during an advise and assist mission, and the third u.s. military member to fall in iraq in the fight against isis. today's combat taking place about 20 miles north of mosul. isis' iraqi hub. secretary carter calling the death, quote, a very sad loss. well, the fight against isis is just one of the hot topics on the campaign trail, but i found that threats to america are definitely on the minds of the two richest men in america. fixing the broken education system along with bernie sanders' plan for free college education. all huge issues with berkshire hathaway ceo and founder warren buffett and bill gates, and berkshire board members, considering gates is original tech guru, i asked him about the role tech is playing in the
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war on terror? >> social media is being used to recruit members for isis, bill. we have cell phones that can trip off suicide vests now. do you worry at this point that technology moves so quickly and so fast that it will be beyond the government's to stop it? >> i think mobile phones of course are used by good guys and bad guys, and there i think with the right policies, there's no big, big problem. the area that i worry about the most is more in the terrorists using weapons of mass destruction, nuclear and biological. that's where i, you know, hope that we're able to keep track of what people are doing in such a way that we avoid. that but the bad guy is getting the ability to have more impact because making a virus or
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making a bomb has gotten more approachable by a small group. liz: what do you think about that, warren? gps? drones? they're probably working right now. they, the terrorists. to outfit a drone with smallpox? >> absolutely. >> absolutely? [laughter] >> you need intent, knowledge, material and deliverability, and in all of those areas, the possible potency of what can be done is mushroom them, and it is a dangerous, very dangerous world in terms of weapons of mass destruction, and the government, in my view, has done a good job so far, but the problem is that it's something where 99% doesn't work in terms of defense. it's got to be 100%. liz: education is a hot topic right now on the campaign trail, and bernie sanders sure is driving a lot of the conversation because he talks about make college free for a lot of people.
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you brought it up, warren, about public education and said we're spending $600 billion. >> just on 50 million kids in public school. 5 million in private school below college level and have you college and so on. liz: you said, if we have a problem with public education it's not because we're cheap. >> that's right. liz: what will solve the problem that we have with our public education? >> that's somehow defied people who are very, very smart or willing to spend lots of money and who could not be better motivated. it is, it is, i think it's the toughest big problem in philanthropy. i don't know if bill would agree or not? liz: you agree, bill? >> toughest thing we're working on. liz: i remember walking down the hallway at central high, every generation of the buffett family has gone through public school. >> absolutely. liz: i walked with your kids and you through the hallowed
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hallways, it's hard to get it back when have you lost public education. >> to maintain a good public school system is a hell of a lot easier than to rebuild one. liz: should we follow bernie sanders' idea and pay for college education, three or four years? >> well, a, i wish it was easy to find that money. b, i wish that would solve all the ills we have in k-12 and higher education. in fact, the dropout rates we have, the challenge of the inner city schools. just finding this extra money does not solve those problems. liz: so money isn't the answer, according to warren buffett and bill gates. who is the answer maybe is the question. guess what? i asked bill gates about one young billionaire and his potential role in take the bill gates let's come up with
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solutions idea. he talks about mark zuckerberg from facebook. we got so much out of him, you need to go to lizclaman.com. buffett, gates, they are players as well. check them out at the ping-pong table. it's a show. they're not doing this at the ge shareholder meeting. i also talked to warren buffett's kids, howard, susie and peter, talked about their dad's legacy and the famed benjamin moore color wheel. the ceo of benjamin moore on the hottest paint color right now in the nation. he names it! yes, he does. that's the ceo of benjamin moore. go to lizclaman.com to find the answers and hear what the people heavily involved in business are doing. follow me on twitter, we are over 45,000. we're pushing for 50,000 folks. jump on in, my facebook page is a lot of the pictures and everything happening here from the weekend in omaha.
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we call it weekend with warren. boy, you saw a lot of other business leaders, too. by the way, we have more breaking news. this time from broadway, a block away, the hottest ticket in town just got even hotter. broadway's "hamilton," setting a new record today. walking away with 16 tony nominations. the most nominations for a musical ever surpassing both the producers, billy elliott and fiddler on the roof. the tony award ceremony on june 12th will be the latest opportunity for "hamilton" to cash in on runaway success. the man who wrote it, lin-manuel miranda garnering a pulitzer prize, a grammy and spot on the billboard 200 charts. i think he beat drake at one point. imagine that. closing bell 28 minutes away, voters lining up in indiana to cast votes as the dow falls 124 points.
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today's battle in the hoosier state as do or die for both sides of the aisle. up next, look who's standing by, former indiana governor and senator evan bayh, a democrat and hillary clinton supporter. find out what the indiana native has to say about the former secretary of state's dwindling lead against challenger bernie sanders, at least in the indiana statement more "countdown" on the way.
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. liz: hillary clinton speaking right now in akron, ohio. interestingly she's not in indiana, she's there in ohio. it's a very interesting time because, of course, athens is home to ohio university. big population that matters when you have the bernie sanders group, and, you know, it's in the eastern region. there is arguably coal activity or the history of it.
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so it's an important place for her to be if she does damage control after putting coal miners out of business, that's what she said she might do as president. put the coal miners out of the business. she's trying to walk the comments back and say what she meant is put them as they go out of business, she'll put them in renewables and give them better paying jobs. that controversy is the last thing she needs as she comes off two weeks of impressive wins over senator sanders. we're joined by former indiana governor and senator evan bayh, hillary clinton supporter. we're 2 1/2 hours away before we see early returns in your state. what happens in indiana, seems like awfully close race at this point? >> liz, it's a jump ball. it could go either way. the polls have it within the margin of error, senator sanders message on trade has resonated, but secretary
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clinton has campaigned hard and husband has campaigned hard and message is resonating, too. the democratic party is kind of 50-50. liz: very interested to hear you say jump ball. she has had big wins over the past four out of five, five out of six, and now he's within margin of error. to what do you attribute that? >> well, a number of things. remember, eight years ago she only carried my state by 1% over barack obama, so it was closely divided then, but liz, i think your viewers can relate to this too, bernie sanders is running saturation level television ads, saturation level radio ads and he's running a lot of ads on country western radio stations, who knew? socialists listen to country western? i guess some of them do. [laughter] >> her campaign made a decision to not advertise at all, ultimately it is about the
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delegates. whether she wins 51-49 or he wins 51-49. they're going to split the delegates right down the middle. it is about bragging rights tonight. liz: do you think she should have spent more time in indiana? we showed her in ohio, she was with a longtime politician. here's a live picture of them together as they're speaking rather animatedly. big supporters there, should she be in indiana right now? ohio's primary already was. >> she was in our statement i was with her in indianapolis sunday, i was with her husband in kokomo, gary and fort wayne the day before. they've been campaigning across our state and senator sanders is somewhere else, too. with the votes being cast, you don't make much difference on election day. my sense is most voters are ready for this thing to be over and for the candidates and ads to move onto someplace else. liz: you know what they start doing on both sides?
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the wheels turn in their minds and do fantasy cabinet members, and there is word that hillary clinton may consider her husband, former president bill clinton as a possible, i guess put him to work, i can't say cabinet member, we don't have clarity on that. what do you think would be a good role for the president, if any role at all? >> well, if he's in the cabinet, i suspect it will be in her kitchen cabinet where he's an informal adviser. it is a unique situation where you have someone as your spouse that had the job and has an infinite amount experience, i suspect he'll be a very important informal adviser, he may take on projects burke not a formal paid role. i don't think that would happen. liz: way, maybe he gets the dollar that warren buffett takes often for his salary. let me ask you your thought on the republican side, do you think that this gets really close? it's gotten hyperbolic and
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nasty between ted cruz and donald trump lately. what downing the voters in your state on the republican side are going to >> it has gone the nasty. i see that senator cruz today called donald trump a pathological liar. how they walk some of that stuff back in the fall campaign, i don't know. i do think donald trump is going to have a good night. i predict he would get the vast majority of the victory. liz: thanks to you, governor, senator, you are everything, right? >> i've had a lot of help. great being with you. and nice having the two hottest tickets in town be "hamilton" and the indiana primary. hoosiers are enjoying our time in the sun. liz: exactly! i completely agree with you. "hamilton" and indiana. thank you so much. good to see you. appreciate it. >> always good. liz: everybody keep it here on the fox business network for all of your primary coverage of indiana.
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neil cavuto, lou dobbs, stuart varney, the rest of the fox business all-stars kick it off 6:00 p.m. eastern. closing bell 18 minutes away, wall street's infamous pharma boy, the guy who wore the hoodie. martin shkreli back in court on fraud charges. what did the former pharmaceutical ceo have to say for himself this time around? you've got to see the latest from the courthouse. and the fight between warren buffett, charlie munger and the so-called baby buffett, bill ackman taken up a notch on "countdown." charlie gasparino reads between the lines on the valeant attacks. boy, there is big fallout here. more "countdown" on the way.
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. liz: breaking news, martin shkreli, that former turing
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pharmaceutical ceo on trial for fraud discovered today he could face additional charges and indictments. details have not been released but a hearing set for june 6th. shkreli, notoriously known for, a, wearing the hoodie to court. and, b, hiking the price of life-saving drugs for cancer and aids patients by 5,000% currently a disgraced ceo and facing charges he illegally used money from one of his companies to fund bad market bets at another one of his companies. >> remember, he's not in trouble for raising prices. >> not in trouble for raising the price. another pharmaceutical company torched for hiking the prices of life-saving drugs is dealing with serious sucker punches from warren buffett and berkshire vice chairman on our air charlie munger yesterday. buffet and munger passed on valeant and refused to conceal
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negative view about valeant and questionable business model or the hedge fund billionaire championing the cause. bill ackman. >> bill ackman really wanted you to speak to him because he said you're doing reputational damage to a company you don't understand. he wanted to you change your mind. will you change your mind on valeant? >> i don't think so. there's a complaint about my saying valeant was a sewer, i thought my complaint would come from the sewers. [ laughter ] >> that is unbelievable. he said the suers should be complaining more. up another 9.5%. what the two investors said negatively about it has not hurt it really that much? >> well, yeah, a lot of the losses are built in and they
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have a lot of assets. you know, that was a fascinating interview. you interviewed both of them afterwards as well. you got great quotes. two interesting things they mentioned. buffett, don't they look alike? liz: you should see early picts. they look exactly alike and they're best friends. >> buffett believes that valeant could easily sell bausch & lomb, that is a big question, ackman, the baby buffett who is controlling the company in a lot of respects said it doesn't want to get rid of -- doesn't want to have valeant get rid of assets like bausch & lomb. they could sell it. one thing that buffett said, if they sell, they're going to get a lot less than what they think it's worth. liz: i asked him in the commercial break, they could sell it, it's not worth nearly as much as people think it is. >> people think it's $11-15 billion.
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maybe they get five or eight. i don't know. that's an interesting thing. that means he overpaid for it in 2013, i think it was 15 billion. the second thing he said switching gears off valeant, munger said you have anything good to say about ackman? she said -- liz: let's listen. here's what he said. >> okay. >> well, he certainly made a brilliant investment in general growth properties and totally right about herbalife and very articulate and intelligent and he's a fellow harvard man. he's not all bad. >> did he say something about yale too? he's a yale guy? liz: he's a harvard guy. he then said to me, please make sure you air the nice things i've said about bill ackman, i like to put perfume in whether there's a lot of manure as well. >> he's saying the valeant call
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is manure, he thinks it's a sewage company. he thinks herbalife, long valeant and short herbalife. he thinks he's right on. liz: why do you think it's right? i've seen herbalife exist for decades. >> it doesn't sell its products. liz: and munger said, well, because they get people who are financially disadvantaged to buy a lot of product with the hope of selling it. >> well, i will say this. that's one of the -- that's not the basis of being a pyramid scheme. liz: exactly. that's why i pushed him. >> i have tons of stuff on social media. you set up a firestorm on social media when we tweeted and retweeted that stuff. they were talking about how buffet and munger invested in multilevel marketing. liz: yeah, pampered chef. >> they were saying what's the difference between pampered chef and herbalife. liz: i got it, berkshire's
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money behind it. >> they were saying those guys speak out of both sides of their mouth on a lot of the investments. liz: everybody can see the entire interview on lizclaman.com. that's what you need to see. >> as an investor, he and munger break things down really well. liz: 50 year track record. >> any good food out there? any good places? >> peanut brittle. every restaurant i have eaten at is delish. >> hot bars to hang out? liz: where i am, it turns hot. [ laughter ] we're coming right back. the dow is down 132 points. stay tuned, we're talking apple and more!
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♪ ♪ (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. ♪ liz: we need to keep our eye on apple here. up nearly 2%. set to snap the longest losing streak in nearly 18 years. the tech giant struggling with declining iphone sales. ceo tim cook is stressing that,
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quote, the most important thing is that customers love our products. ross gerber has loved a lot of products he bought about 150,000 apple shares. you have lost a million bucks on the stock in just the last week? >> yeah. probably at least a million dollars. so we're a little bit upset on the short term. liz: he comes out, says everybody loves our products. don't you wish they come out with a new sort of game changing one? >> that is the problem. the products are wonderful, they're so good nobody replaces them fast enough and now sales are going down. what they have done, made products too good. that is a wonderful problem to have, if you invent new ones. if you don't, it's a real big problem for them because upgrade cycle has really slowed down. david: why aren't they making some type of acquisition with the huge cash pile, i'm saying apple tv. they tried and can not quite make it that zeitgeist moment for people that love tv?
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that would be a lot of people i think. what if they make acquisition? you have mergers and acquisitions in the space? row cue, tivo, panasonic what is apdoing right now? >> i think that is the most important issue. you just had buffett and monger, two of the greatest acquirers of companies building value and tim take as lesson from these guys. you can not have $200 billion on the books, do nothing with it for years and expect your business to grow. look at disney, they acquired "star wars" and pixar and where would they be without these acquisition, marvel. apple needs to buy tesla or buy netflix if they want to be in the tv business or both. liz: buffett hates having too much cash on the book. he spent 32 billion on precision
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castparts. we have minute to go. we have three names. two defense names, lockheed martin and northrop grumman. what is up with defense that caught your eye? >> we started investing in defense about a year ago, with obviously rise of isis creates enormous demand for bombs, missiles and drones but what happened over the last year as the u.s. not invested enough in rebuilding and supporting our military as well as our allies. we have troops in iraq. they are now actively fighting in syria and iraq. we lost a u.s. navy seal today in combat against isis, and my thoughts are with him. we need to go in there and fight and bomb these guys. so military stocks are doing very well in this environment. also with the bombastic trump out there, talking up everything, that also supports defense stocks. liz: great to see you, ross. thank you so. sorry i hope temporary loss in ample stock price for you guys. good to see you.
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ross gerber, gerber kawasaki. the dow had been down 220. today we've seen nasdaq lose nine out of 10 secondses. there is the closing bell. [closing bell rings] david and melissa, pick it up. melissa: dow down triple digits. i'm melissa francis. david: i'm david asman, this is "after the bell." at this hour, high-stakes in the hoosier state. voting is underway in indiana, a few short hours away from the first results. if ted cruz pull off an upset it could be all over. the senator working hard on campaign trail today, in last-ditch effort to get every single vote he can. meanwhile hillary clinton is in hot water, confronted by a former coal worker in west virginia. bo copley, questioned how she could say she would put coal miners out of business and then go there to win their votes. he joins us this hour. melissa: i can't wait for that. most

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